In pursuit of promoting mutual growth, diversification and the elevation of the aluminium industry, a memorandum of understanding has been signed on Sunday between the two reputable leading companies in major industrial fields, Obeikan Glass Company and Al-Esra Aluminium at Obeikan’s headquarter in Riyadh in the presence of representatives from both parties.
The Memorandum of Understanding defines the framework for joint investment between Obeikan Glass and Al-Esraa Aluminium to establish and operate an Aluminium Casting Factory in Madinah on an area of 30,000 square meters. The factory will be equipped with the necessary machinery and resources for casting and producing high-quality aluminium with a production capacity of approximately 15,000 tons annually, to serve the industrial and defence sectors, as well as the aircraft and automobile industries, and the energy fields.
This step came in line with the goals of Obeikan Glass Company to expand and add diversification to their investment portfolio, and most importantly, to utilize their expertise and industrial excellence in the field of glass. The MoU seeks to generate real value and create promising growth opportunities that will reflect positively on the aluminium industry in the Kingdom. There are several factors that contributed to strengthening this partnership, the most significant of which is the compatibility of the business model, as both of them are B2B serving the building and construction sectors and various industrial applications.
Merging the expertise and the consolidation of efforts, will not only result in the birth of a strong facility that aims to expand the manufacturing capacity of aluminium, enhance quality and boost production. Beyond that, this joint venture cooperation also looks forward to supporting the aluminium productions and exports on a large scale in the Kingdom of Saudi Arabia.
About Obeikan Glass
The company specializes in the manufacture and production of all kinds of glass (transparent, coated and safety glass). The company is currently one of the largest manufactures of the flat glass products in the Middle East region, with a maximum production capacity of 800 tons per day and export to nearly 45 countries per year. The company’s factory is located in the Yanbu Industrial City. The company’s activity also includes wholesale and retail trade of all types of glass and raw materials for the manufacture of glass and accessories, in addition to manufacturing cutting and colouring and installing of glass, as well as establishing and managing related mining quarries.
About Al-Esra Aluminium
The company has been established 35 years ago, Al-Esra Company has been supplying the market with cast and fabricated aluminium products for architectural and construction uses, including facades, decorative lighting poles, handrails, fences, gates, and many customized products according to customer needs. However, with hard work, the company was able to transform, in a few years, from a simple workshop for manufacturing aluminium units to one of the few companies in the world that carry out a specialized and integrated investment activity, starting from the stages of refinement and casting, up to the stage of design, manufacturing, and innovation.