Dalipal Holdings Inks Deal for US$600 Million Facility at Saudi SPARK

Hong Kong-listed Dalipal Holdings finalized a 25-year lease for a 1,030,916-square-meter site at King Salman Energy Park in Saudi Arabia. The agreement initiates Phase 1 of an energy equipment base with approximately $600 million in committed capital expenditure toward a planned $2.1 billion total investment. The plant will produce seamless steel pipes, OCTG, and hydrogen pipelines to serve the Gulf and Middle East.

Published October 14, 2026 Source: MENAFN

English Original
中文 Chinese version
العربية Automatic translation

Illustration

King Salman Energy Park (SPARK) in Saudi Arabia finalized a 25-year land lease agreement with Hong Kong-listed Dalipal Holdings for a 1,030,916-square-meter site.

The agreement marks the transition of Dalipal's energy equipment manufacturing base into an active execution phase. The project has a planned total investment of $2.1 billion, with Phase 1 representing a committed capital expenditure of approximately $600 million.

According to the announcement, Phase 1 will focus on building advanced facilities for the production of seamless steel pipes, oil country tubular goods (OCTG), and hydrogen pipelines.

Dalipal Chairman Meng Fanyong stated that the site will serve as a core regional manufacturing hub catering to Saudi Arabia and the broader Middle East. The initiative aims to strengthen domestic supply chains for energy infrastructure and deepen industrial manufacturing ties between China and the Gulf.