26-05-2025
Saudi Arabia launches joint venture to produce high-voltage insulators
JEDDAH: Saudi Arabia's power sector is set to receive a significant boost following the launch of a new joint venture aimed at localizing the production of high-voltage porcelain insulators, a key component in the Kingdom's push to strengthen domestic manufacturing and reduce reliance on imports.
The agreement, signed under the patronage of the Ministry of Energy, brings together China's Dalian Insulators Group, Power Union Co. — a subsidiary of Al-Ojaimi Industrial Group — and the Saudi firm Greengrid.
The consortium will establish a new facility within the Kingdom to produce high-voltage and extra-high-voltage suspension porcelain insulators used in electricity transmission and distribution networks.
The deal was formalized by Salem Mohammed Al-Ojaimi, CEO of Al-Ojaimi Industrial Group, and Chen Junrong, chairman and general manager of Dalian Insulators Group.
Under the patronage of the Ministry of Energy, a joint venture agreement has been signed to advance localization in the conventional power sector.
— وزارة الطاقة (@MoEnergy_Saudi) May 25, 2025
The initiative aligns closely with Saudi Arabia's economic diversification plan that emphasizes local industry development, reduced import dependency, and private sector engagement. The venture is expected to reinforce local energy supply chains, reduce operational costs, and generate employment opportunities within the power 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.'
The initiative is part of Nuwatin — Arabic for 'We Localize' — a flagship program under the Energy Localization initiative, unveiled at the Energy Localization Forum in Riyadh last October. It aims to guide energy companies toward national localization targets, including expanding industrial capacity, increasing GDP contribution, boosting exports, and improving the trade balance.
Porcelain insulators are vital to the reliability and safety of high-voltage transmission lines, providing both mechanical and electrical stability. Local production is expected to enhance grid resilience, reduce long-term infrastructure costs, and accelerate the development of a self-reliant domestic energy industry.
Established in 1915, Dalian Insulators Group is a leading Chinese manufacturer of high-voltage insulators and has been publicly listed on the Shenzhen Stock Exchange since 2011. The company has supplied more than eight million porcelain insulators to major transmission projects globally, including China's 1,000kV UHV AC and 800kV DC lines.
As Saudi Arabia continues its transition to a more diversified and resilient energy economy, this joint venture represents a strategic step forward in strengthening industrial cooperation and advancing energy sector localization.
