Saudi Arabia’s energy city King Salman Energy Park (SPARK) announced on Monday that UAE’s SeAH Steel and the Saudi Arabian Industrial Investment Co. (Dussur) will form a joint venture to establish a seamless stainless steel pipe factory at an investment of 1 billion Saudi riyals ($270 million).
SPARK said in a tweet that Gulf Special Steel, the new JV, will help localise a strategic industrial segment, which supports the energy sector and enable knowledge transfer in the Kingdom.
The agreement was signed on the side lines of the second Saudi International Iron and Steel Conference in Riyadh as part of the National Steel Strategy under the Vision 2030 program.
An press statement by the Ministry of Industry and Mineral Resources said the projects include an integrated steel plate production complex with a capacity of 1.2 million tonnes per year to supply manufacturers of oil pipelines, platforms, and storage tanks, and the ship building industry; a steel rolling mill with annual capacity of four million tonnes of hot rolled coils and one million tonnes of cold rolled coils, and 200,000 tonnes of tin-plated steel to serve automotive, food packaging, household appliances, and water pipe manufacturers and a steel billets plant with a production capacity of one million tonnes/year to support the manufacture of seamless steel pipes for the oil and gas industry.
(Writing by D Madhura; Editing by Anoop Menon)
