Dalipal Holdings Limited's plan for an advanced smart manufacturing base for energy equipment in Saudi Arabia has moved from strategic planning to long-term execution, after the company signed a 25-year land lease covering 1,030,916 square metres with King Salman Energy Park (SPARK).

Under the agreement, Dalipal International for Industry Company, a wholly owned subsidiary of Hong Kong-listed Dalipal Holdings (HKEX: 1921), will develop the site into a major manufacturing platform serving Saudi Arabia, the wider Middle East and international markets.

Total investment is expected to reach about $2.1 billion, including roughly $600 million for the first phase. The funds will build advanced capacity for seamless steel pipes, including casing and tubing for oil and gas wells, drill pipes and hydrogen pipes. The site will draw on SPARK's integrated industrial ecosystem, infrastructure and logistics, and its proximity to the Kingdom's main energy markets, supporting the localisation of strategic energy supply chains.

SPARK President and CEO Mishaal Al-Zughaibi called the lease a pivotal milestone, saying the scale of the investment reflects Dalipal's commitment to the Kingdom and the confidence of leading Chinese manufacturers in its long-term growth.

Dalipal Holdings Chairman Meng Fanyong said Saudi Arabia is a strategic market and a key pillar of the company's international expansion, and that the new base will bring it closer to customers and improve regional supply chains. He expressed confidence the project will become a model for China-Saudi economic cooperation. It builds on a memorandum of understanding signed in November 2024 for a seamless steel pipe facility on more than one million square metres.