The stainless steel seamless pipe manufacturing plant will be set up in a joint venture between SeAH Gulf Special Steel and King Salman Energy Park.
Saudi Arabia’s King Salman Energy Park (SPARK) has signed an agreement with SeAH Gulf Special Steel to establish a seamless pipe factory at an investment of 1 billion Saudi riyals (USD 270 million). King Salman Energy Park, a new megaproject, is being constructed and located between Dammam and Al-Ahsa in the Eastern Province of Saudi Arabia.
SeAH Gulf Special Steel is a joint venture between the UAE’s SeAH Steel and the Saudi Arabian Industrial Investments Company (Dussur).
In a tweet, SPARK asserted that the stainless steel seamless pipe manufacturing project will help localise a strategic industrial segment, which supports the energy sector and enable knowledge transfer in the Kingdom of Saudi Arabia (KSA).
The contract was signed on the sidelines of the second Saudi International Iron and Steel Conference in Riyadh as part of the National Steel Strategy under the Vision 2030 program.
Also Read: Saudi Steel Pipe Secures USD 25 Million Contract with Tenaris Global
A press statement by the Ministry of Industry and Mineral Resources informed that the projects planned by KSA include an integrated steel plate production complex with an annual production capacity of 1.2 million tonnes to supply manufacturers of oil pipelines, platforms, and storage tanks, and the shipbuilding industry. In addition, a steel rolling mill with a production capacity of four million tonnes of hot rolled coils and one million tonnes of cold rolled coils is also planned. Further, 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 per year to support the manufacture of seamless steel pipes for the oil & gas industry.