The thinking behind the decision is closely linked to the development in Saudi Arabia of what promises to be the world’s largest integrated aluminium complex on the country’s east coast, which has at its heart the Ma’aden smelter at Ras Al Khair – a joint venture between the Saudi Arabian Mining Company and Alcoa.
With emissions reduction and fuel economy top-of-mind, car manufacturers are increasingly turning to aluminium to make their cars lighter and, therefore, more fuel-efficient.
A letter of intent has been signed between JLR and the National Industrial Clusters Development Program (NICDP) and has the backing of the Saudi Government and HRH Prince Faisal Bin Turki bin Abdul Azi Al Saud.
Having a production base in Saudi Arabia will make sound business sense as JLR will be able to secure a steady supply of aluminium as global demand for the light metal starts to rise.