The plant will be built by SeAH Gulf Special Steel, a joint venture between SeAH Steel from the UAE and Dussur from Saudi Arabia.
(Correction of paragraphs 1, 2, 3, correction of the name and components of the JV and the counterparty of the agreement with SPARK)
Saudi Arabia’s King Salman Energy Park (SPARK) announced on Monday that it has signed an agreement with Siya Gulf Special Steel to invest 1 billion Saudi Riyals ($270 million) to build a stainless steel seamless pipe plant.
SeAH Gulf Special Steel is a joint venture between SeAH Steel of the UAE and the Saudi Arabian Industrial Investment Company (Dussur).
In a tweet, SPARK said that the project will help localize strategic industries, thereby supporting the energy sector and ensuring the transfer of knowledge in the kingdom.
The agreement was signed during the second Saudi International Steel Industry Conference in Riyadh as part of the national steel strategy under the Vision 2030 plan.
On Tuesday, Zawya Projects reported that Saudi Arabia is planning three new projects in the steel industry worth 35 billion Saudi Riyals ($9.31 billion).
According to a press release from the Ministry of Industry and Mineral Resources, the projects include an integrated steel plate production facility with a capacity of 1.2 million tons per year to supply oil pipeline manufacturers, platforms and storage tanks, and shipbuilding; 4 million tons per year Rolling mills for hot rolled coil, 1 million tons of cold rolled coil and 200,000 tons of tinned steel, serving manufacturers of automobiles, food packaging, household appliances and water pipes, as well as 1 million tons / year billet mills to support oil and production of seamless steel pipes for the gas industry.
Disclaimer: This article is for informational purposes only. The Content does not contain tax, legal or investment advice or opinions regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.