Gulf Construction Online - Al Rajhi Steel builds $250m facility

Steel

Al Rajhi Steel builds $250m facility

01 July 2004

Al Rajhi Steel Group, a leading steel manufacturer in Saudi Arabia, is completing work on its new SR940 million ($250 million) melt shop project, which according to the company will allow it to enhance its production capabilities to up to 850,000 tonnes per year (tpy).

“In view of the increased activity in the construction sector in the kingdom as well as the adjoining markets, this unit will help provide the market with the raw materials required for the manufacture of steel bars, both in the local and neighbouring markets,” says a company spokesman.
As planned, the factory will start the production of billets in mid-2005, and once operational, it will make raw materials available locally, thereby reducing construction costs, he adds.
The products that will roll out of the company will include: steel billets 37 (st-37), steel billets 44, 50, 52; low-carbon steel billets; steel billets 60; and wire rod and rebar in coils. The billets will be available in sizes ranging from 100 by 100 mm to 160 by 160 mm with lengths starting from 3.5 m to 12 m, he says.
Established in 1984 on a 10,000 sq m plot and with a capital of SR95 million, Al Rajhi Factory for Steel Industries produces 250 million tonnes per year of a range of products, which have a 35 per cent share of the Saudi market.
These include an assortment of tubes, pipes, hot and cold rolled steel sheets, zincor, checker blades, and stainless steel and galvanised sheets, insulated corrugated sheets alongside numerous galvanised products and profiles and with different standards and thicknesses, says the spokesman.
The company states that apart from the vast range of products that it has to offer, its strength has been in the quality of its products.
“We have a team of qualified engineers, chemists and technicians helping us in complying to the international standards of quality at state-of-the-art quality control labs. Product samples are also inspected at random to ensure that our products conform with the required standard specifications,” the spokesman says.
This year the factory has been working with a consultancy company to obtain the ISO 9001: 2000 certification, which is expected to be achieved shortly.
In addition, Al Rajhi has been relying on supplies from Korean and Japanese companies for its raw materials to enhance the quality of finished products.
Al Rajhi also has a specialised section aiming to pursue development and research to keep abreast of latest developments in the global steel industry.
“This is why we have become one of the leading steel manufacturers in the kingdom and the region,” says the spokesman. “In this regard, the factory is poised to launch a study on upgrading its production lines and adding new lines. We are also looking at launching new steel products to meet the local and overseas market needs,” he adds.
Also part of the Al Rajhi Group is the Al Assemah Steel Products plant, which was established in 1996 on a 20,000 sq m plot in Riyadh, with a capital of SR170 million. The factory manufactures steel bars in various shapes and sizes, starting from 10 mm to 32 mm. All the products conform to the established regional standards such as the GR60, A615, and the ASTM, says the spokesman.
The factory, which has an annual capacity of 500,000 tonnes, has within a short span of time established a repulation for the quality of its products both in the local and the international markets, he adds.
The company manufactures rebars/reinforcement steel for buildings in sizes starting from 8, 10, 12, 14, 16, 18, 20, 25, 28, and 32 mm. It also produces square solid, rounded and flat bars and steel angles.
“What makes our products special is that we use natural air in cooling, which allows positive changes in the microstructure of the steel thereby enhancing its qualities, such as hardness and resistance while minimising the husk thickness, says the spokesman.
Mohammed Abdul Aziz Al Rajhi and Sons has various factories specialised in producing different types of steel products under its fold. The group’s factories have a large number of customers in the local and Gulf market as well as other Arab countries, says the spokesman.
“Our vision is to be leaders in manufacturing and selling all kinds of steel products all over the world and our mission is to achieve customer satisfaction by providing various high-quality steel products, conforming to the international specifications, with competitive prices,” says the spokesman.
The group also plans to increase the production of steel and commercial bars to cope with the rising demand for such commodities.
“Also we are looking forward to open new markets in and around the region,” he adds.