Saudi Arabia to build three iron and steel projects worth $9.3bn

Twitter: SIIS_KSA

• Ministry working on reducing imports by 50 percent
• Reviewing and approving 16 policies and legislation under process

Saudi Arabia is building three iron and steel manufacturing factories worth SAR 35 billion ($9.31 billion) with a combined capacity of 6.2 million tonnes, the Saudi Press Agency reported, citing Minister of Industry and Mineral Resources Bandar Al-Khorayef.

The construction of an integrated iron sheet production complex with a capacity of 1.2 million tonnes per year is among the three projects. The complex will focus on shipbuilding, oil pipes and platforms and oil reservoirs.

Al-Khorayef said that a new project is being negotiated with international investors: an integrated iron surface production complex with an annual capacity of four million tonnes of hot rolled iron, one million tonnes of cold rolled iron and 200,000 tonnes of tin-plated iron and other products.

The complex will benefit the automotive, food packaging, household appliances and water transportation pipe sectors.

Additionally, a factory will be established to produce circular iron blocks with an estimated production capacity of one million tonnes per year, catering to the oil and gas industry’s unwelded iron pipes.

The minister emphasised that the national plan for structuring the iron and steel sector contains 41 recommendations to enable and sustain the industry.

These include reviewing and approving 16 policies and legislation, as well as collaborating with the private sector on several long-term solutions, such as establishing an iron academy and a research and development centre.

Furthermore, the ministry is working on reducing imports by 50 percent, with an emphasis on maintaining a financially and operationally sustainable sector and ensuring the availability of critical supply chains such as iron ore.