In an advanced phase for the SeAH Gulf Special Steel, owned by the Saudi Arabian Industrial Investments Company Dussur, and the Korean SeAH Changwon Integrated special steel Corporation, an industrial land allocation agreement was signed with King Salman Energy Park (SPARK) to launch the first factory specialized in the industrial field of manufacturing Stainless Steel Seamless Pipes in the Middle East and North Africa (MENA) Region, with an investment of more than SR 1 billion.
The agreement signifies a strategic partnership between SeAH Gulf Special Steel and Spark to allocate a land area of 177,845 square meters to create SeAH Gulf Special Steel factory, with a production capacity of 20,000 tons per annum. The significance of SeAH Gulf Special Steel factory lies in the prospects of bringing together global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in adding up to energy and water.
At the signing ceremony Dussur announced that it had awarded an engineering, procurement, and construction contract (EPC) contract valued at SR 260 million ($69.2 million) to Sendan International Company Limited, a leading Saudi-based construction group, for the new steel factory.
A major participant in Saudi industrial sector, Sendan has established a robust standing as a contractor in the oil, gas, power, petrochemical, water, and mining in the kingdom.
As per the agreement, the all-inclusive project would be completed in 34 months and the commercial operation of the factory would commence by 2025, said the report from Dussur.
A most important industrial group in the region, Dussur is owned by the Saudi sovereign wealth fund Public Investment Fund (PIF), the world’s largest integrated energy and chemicals companies, Aramco, and global diversified chemicals company Sabic.
SeAH Gulf’s significance
Dussur pointed out that the significance of SeAH Gulf Special Steel factory lies in the opportunities of attracting global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in addition to energy and water.
On selecting Spark for its project, Dussur said it was the finest choice as it is one of the most established industrial cities in the kingdom. Also, it offers integrated industrial services containing electricity and gas supplies, in addition to water and communication facilities.
Seah Gulf Special Steel asserted that once the factory is operational, around 240 technical and engineering job opportunities will be available for Saudi youth. Additionally, it would help the kingdom of Saudi Arabia reduce its dependence on imports for strategic goods into the country.
Dussur CEO Dr Raed Al Rayes said that the company is recognized as a sustainable investment model to help develop key industrial sectors and their associated value chains in the Kingdom of Saudi Arabia. This partnership is a significant achievement that will meet the current demand for stainless steel pipes in the kingdom and in the Mena region.
Dussur’s mission to empower the industrial sector, maximizing the progressive influence through the transfer and localization of industrial knowledge, creating professional jobs for the inhabitants of the kingdom, and attracting foreign direct investments, following the objectives of the Saudi Vision 2030, Al Rayes added.