The Dammam plant, which is projected to be completed by the end of fiscal year 2024, will have the capacity to produce 100,000 tonnes of copper rod annually. This development is part of a broader initiative by Saudi Arabia to boost its manufacturing capabilities, reduce reliance on imports, and foster local industries under its Vision 2030 economic reform program. Vedanta’s move to set up this plant highlights the increasing importance of the Middle East as a key player in the global copper supply chain, especially as demand for metals rises in both construction and energy sectors.
Puneet Khurana, Deputy CEO of Vedanta’s Copper Sector, emphasized that the company’s expansion into Saudi Arabia is in direct response to the government's push to invite industries that will contribute to the kingdom's economic growth. He further noted that copper, as a vital resource in various industries, will play an integral role in Saudi Arabia’s industrial future. The plant in Dammam is expected to serve both local needs and the wider regional market, helping to solidify Vedanta's position in the global copper landscape.
Beyond this immediate investment, Vedanta has expressed interest in exploring additional opportunities within the copper value chain in Saudi Arabia. The company already has significant operations in India and the UAE, and the Dammam facility will be its latest addition to its global network of copper production plants. With the completion of the copper rod mill, Vedanta plans to explore further developments in the copper sector, particularly in refining and downstream processes.
The decision to invest in Saudi Arabia's copper industry follows a period of increasing demand for copper, driven by the global push toward green energy technologies and electric vehicles. Copper is a critical material in the production of electric wiring, motors, and batteries. As countries around the world invest in renewable energy infrastructure, the demand for copper is expected to rise significantly, and Saudi Arabia is positioning itself to capitalize on this trend.
Vedanta’s foray into Saudi Arabia is also expected to strengthen trade ties between India and the kingdom, especially in the metals and mining sectors. The company is already a key player in India’s copper industry, and it aims to increase its market share significantly over the next decade. By 2030, Vedanta plans to capture 45% of the domestic copper market in India, and its investments in Saudi Arabia may help accelerate its broader growth strategy.
The establishment of the copper rod plant in Dammam reflects a broader trend of foreign investments flowing into Saudi Arabia as part of its efforts to diversify its economy away from oil dependence. The country’s Vision 2030 plan has already attracted billions of dollars in investment across various sectors, including technology, tourism, and infrastructure. The copper industry, with its high potential for growth, has now become a key focus within the broader industrial development goals of the kingdom.