Saudi Arabia Launches Wind Tower Factory In Yanbu City

Al Yamamah Steel Industries Co, listed on TADAWUL (1304), has officially started commercial operations at its new wind energy systems factory in Yanbu Industrial City. This marks a key milestone in Saudi Arabia’s strategy to expand its renewable energy supply chain and localize the production of clean energy infrastructure. The inauguration reflects the kingdom’s commitment to Vision 2030 and its ambitious goal to source 50% of electricity from clean energy by 2030.

Inauguration and Capacity Details

The factory was inaugurated under the patronage of Minister of Energy Abdulaziz bin Salman, signifying strong government support for renewable energy initiatives. The plant has an annual production capacity of 50,000 tonnes of steel towers, which will be used to construct wind turbines for various domestic projects. Each tower can reach over 130 metres in height and six metres in diameter, designed to host the latest generation of wind turbines efficiently and safely.

Supporting Saudi Arabia’s Clean Energy Transition

The wind tower facility is supported and supervised by the Ministry of Energy and aligns with the national drive to strengthen local manufacturing for renewable energy technologies. By producing essential wind turbine infrastructure locally, the project enhances Saudi Arabia’s self-sufficiency in clean energy and contributes to long-term sustainability goals. It is a key element in building a robust domestic supply chain for renewable energy components.

Recent Supply Contracts

Earlier in July 2025, Al Yamamah Steel signed two major contracts to supply wind towers to wind farms under construction by SEPCOIII Electric Power Construction Co Ltd. The first contract, valued at SAR 35.7 million (USD 9.5m/EUR 8.2m), covers the Al Ghat wind farm, while the second, worth SAR 33 million, is for the Waad Al-Shamal wind farm. These agreements demonstrate the immediate commercial relevance of the new factory and its role in supporting domestic renewable energy projects.

Alignment With Saudi Vision 2030

The new wind tower plant is part of Saudi Arabia’s broader Vision 2030 plan, which seeks to diversify the national economy, reduce reliance on fossil fuels, and enhance the role of clean energy in the power sector. By localizing the production of critical renewable infrastructure, the kingdom is creating jobs, boosting industrial capabilities, and ensuring long-term energy security.

Contribution to Regional Renewable Goals

The Yanbu plant represents Saudi Arabia’s growing role in regional renewable energy leadership. As wind energy projects expand across the kingdom, the local production of towers reduces dependency on imports, accelerates project timelines, and ensures compliance with international standards. This facility also positions Saudi Arabia as a regional hub for renewable energy manufacturing, attracting potential investments and partnerships.

With its operational wind tower factory, Al Yamamah Steel Industries is set to play a pivotal role in Saudi Arabia’s energy transition. The company plans to continue scaling up production to meet the growing demand for clean energy infrastructure and support the nation’s environmental sustainability objectives. By integrating advanced technologies and expanding local capabilities, the kingdom is making significant strides toward a greener, self-reliant energy future.