- Saudi Arabia launches a joint venture to localize the production of high-voltage porcelain insulators.
- The initiative supports Vision 2030 goals by reducing import dependence and boosting local manufacturing.
- The project will strengthen the power grid’s reliability and support resilient energy infrastructure.
Saudi Arabia’s energy sector is poised for a major enhancement with the initiation of a new joint venture focused on localizing the production of high-voltage porcelain insulators, an essential element in the Kingdom’s efforts to strengthen domestic manufacturing and reduce reliance on imports.
The agreement, signed with the support of the Ministry of Energy, unites China’s Dalian Insulators Group, Power Union Co - a branch of Al-Ojaimi Industrial Group - and the Saudi company Greengrid.
The consortium plans to set up a new facility in the Kingdom for the production of high-voltage and extra-high-voltage porcelain insulators for electricity transmission and distribution systems.
The agreement was formalized by Salem Mohammed Al-Ojaimi, CEO of Al-Ojaimi Industrial Group, and Chen Junrong, chairman and general manager of Dalian Insulators Group.
The initiative is strongly aligned with Saudi Arabia's economic diversification strategy, which aims to build local sectors, reduce dependence on imports, and promoting private sector involvement. The initiative is anticipated to strengthen local energy supply chains, lower operational expenses, and create job opportunities in the energy sector.
In a statement on X, the Ministry of Energy said the agreement seeks to “enhance local manufacturing capabilities in the conventional power sector to achieve the goal of localizing energy sector components by 2030.”
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The project is included in Nuwatin - Arabic for “We Localize” - a key program under the Energy Localization initiative, launched at the Energy Localization Forum in Riyadh last October. Its objective is to direct energy firms towards national localization objectives, such as enhancing industrial capacity, raising GDP contributions, increasing exports, and bettering the trade balance.
Porcelain insulators are required for the reliability and safety of high-voltage transmission lines and are fundamental for both mechanical stability and electrical stability. Local production is expected to improve grid reliability, availability, and resilient infrastructure development, while also stimulating a domestic independent energy sector.
As Saudi Arabia progresses to diversify and strengthen the resilience of the energy economy sector, this partnership represents a fundamental step forward to building industrial collaboration and promoting localization within the energy sector.