Core Insights - The global oil and gas pipeline industry is entering a critical phase of "simultaneous scale growth and structural upgrade" by 2026, with the Middle East emerging as a core growth engine driven by accelerated transformation towards intelligence and sustainability [1] - Investment in oil pipeline construction in the Middle East is expected to exceed $180 billion by 2027, with an average annual growth rate of over 10% predicted by the International Energy Agency (IEA) [1] - The partnership between Dali Group and Zumar in Saudi Arabia aims to leverage local resources and technology to address operational challenges and enhance market competitiveness [1][2] Company Strategy - Dali Group's restructuring of its wholly-owned subsidiary in Saudi Arabia allows it to maintain a 60% stake while partnering with Zumar, ensuring strategic control and local collaboration [2] - The project has a total financing scale of $600 million, with Dali Group contributing $144 million and Zumar $96 million as equity, while Zumar will secure the remaining $360 million from local financial institutions [2] - A commitment to a 10-year holding period for equity stakes by Dali Group and a 4-year lock-in for Zumar ensures long-term stability in the partnership [2] Market Positioning - Zumar's strong local connections and resources, backed by influential families in Saudi Arabia, will facilitate access to government approvals and long-term contracts with major clients like Saudi Aramco [3] - The joint venture will also serve as a sales platform for Dali Group in international markets outside of Greater China, Southeast Asia, and Russia, expanding its market reach [3] Compliance and Cost Efficiency - The partnership aligns with Saudi Arabia's "Vision 2030," which encourages local manufacturing in the energy sector, allowing Dali Group to respond effectively to localization policies [4] - Establishing a production base in Saudi Arabia will reduce delivery times and logistics costs, creating a closed-loop advantage of "local production + local supply" [4] Risk Management - The project's total investment of $600 million presents significant financial and operational risks, which will be mitigated through shared capital contributions and financing responsibilities [5] Technological Advantage - Dali Group's expertise in high-end pipe manufacturing, particularly for oil and gas applications, positions it well to meet the specific demands of the Saudi market, including the production of corrosion-resistant and high-strength pipes [6] - The project is expected to generate significant revenue, with an estimated annual revenue increase of $520 million post-phase one and a projected annual net profit of approximately $130 million once full capacity is reached [6] Growth Potential - The collaboration with Zumar is expected to unlock new growth opportunities in the Middle East and North Africa (MENA) market, enhancing Dali Group's overseas business prospects [7] - The innovative model of "technology output + local resource integration + shared capital" positions Dali Group to capitalize on the $180 billion oil and gas pipeline market while overcoming common challenges faced by multinational companies [8]
达力普控股（01921.HK）出海战略再落子：签署股权合作，剑指超1800亿美元的中东市场