Saudi firm plans major steel billet plant

Archiv – Saudi Arabia | A newly established company in Saudi Arabia, announced plans to start a 300,000 tonne EAF-based steel billet plant before the end of 2010. Newly formed Sulb National Co will start before the end of next year a 300,000 tonnes steel billet plant that would cover 20% of Saudi Arabia’s deficit in the product, its top executive says.Saudi Arabia | A newly-established Saudi Arabian company has announced plans to start up a 300 000-tonnes-per-annum steel billet plant before the end of 2011. To be located at Rabigh, the electric arc furnace-based facility will cover 20% of the country’s deficit in the product, it is claimed.
Family-owned Sulb National Co. expects a government stimulus plan coupled with the imminent launch of a mortgage law to spur steel demand growth after a relative lull during the global economic slow-down. The project will require US$ 67 million in investment, according to Chairman Faisal al Haddawi, and the company is seeking financing from banks and also from the state-run Saudi Industrial Development Fund (SIDF).
He adds: ’We have already approached the SIDF. We are looking for their support. This project will help balance the huge deficit in steel billets and stabilise steel prices. There is only one plant of this kind in Saudi Arabia and its capacity does not exceed 100 000 tonnes per year while our market imports at least 1.5 million tonnes of steel billets per year.’
Germany’s ABP Induction Systems will provide the heavy equipment for the venture which will use local scrap and will also import hot briquetted iron from Libya and South Africa. The product will be sold to domestic steel firms.
The Saudi authorities have imposed restrictions on exports of both steel and scrap owing to the tightness of domestic supply. Saudi Arabia’s annual steel production capacity stands at around 8.4 million tonnes; Hadeed, which is owned by state-controlled Saudi Basic Industries Corp., accounts for about half of domestic production capacity while other leading producers include privately-owned al Ittefaq Steel Products Co. and Al Rajhi Steel.
Saudi steel producers plan to expand their steel production capacity by at least 50% within the next three years, gearing up for an expected surge in demand for new industrial projects and also for housing following the implementation of a long-awaited mortgage law.