Seah Gulf Special Steel, a joint venture between Saudi industrial investments company Dussur and Korean group SeAH Changwon Integrated Special Steel Corporation, said it has sealed an industrial land allocation agreement with King Salman Energy City (Spark) to set up its new steel pipe factory in Dammam at an investment of more than SR1 billion ($266.3 million).

 

As per the agreement, Spark will allocate SeAH Gulf Special Steel an industrial land area of 177,845 sq m to build its factory, which, once operational, will have a production capacity of 20,000 tonnes per year. 

 

And the importance 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 choosing Spark for its project, the Dussur-Korean JV said it is one of the most developed industrial cities in the kingdom, as it provides integrated industrial services that include electricity and gas supplies, in addition to water and communication services.

 

Also at the ceremony, SeAH Gulf Special Steel awarded a engineering, procurement, and construction contract (EPC) contract worth SR260 million to Sendan International Company, a leading Saudi-based construction group, for the steel factory. 

 

A major player in Saudi industrial sector, Sendan has developed a strong position as a contractor in the oil, gas, petrochemical, power, water, and mining in the kingdom. 

 

As per the deal, the entire project will be completed in 34 months and the commercial operation of the factory will begin by 2025.

 

Seah Gulf Special Steel pointed out that once the factory starts operation, around 240 technical and engineering job opportunities will be available for Saudi youth. Also it will help the kingdom reduce its dependence on imports for strategic goods into the country. 

 

Dussur CEO Dr Raed Al Rayes said: "We had established our company as a sustainable investment model to help develop key industrial sectors and their associated value chains in the kingdom. This joint venture is an important achievement that will meet the current demand for stainless steel pipes in Saudi Arabia and also the Mena region."

 

Dussur is owned by the Saudi sovereign wealth fund Public Investment Fund (PIF), state oil giant Aramco and global diversified chemicals company Sabic.

 

It is in line with Dussur’s mission to empower the industrial sector, maximizing the developmental impact through the transfer and localization of industrial knowledge, creating professional jobs for Saudis, and attracting foreign direct investments, following the objectives of the Saudi Vision 2030," he added.-TradeArabia News Service