SABIC awards Danieli $630m steel plant contract

Italian contractor to build steel plant for SABIC affiliate in the KSA

NEWS, Downstream

Saudi Basic Industries Corporation (SABIC) has announced that it’s that its manufacturing affiliate, Saudi Iron and Steel Company (HADEED) has signed a US$630 million deal with the Italian company, Danieli for the construction of a steel plant and a production line for galvanizing long products in Jubail in the KSA.

In a statement SABIC said that the new plant, which is scheduled to start-up in the second half of 2012, will have an annual production capacity of one million tons of steel billets. It will increase the total production capacity of HADEED to six million tons, of which long products will account for four million.

Abdulaziz Suleiman Al-Humaid, SABIC vice president, Metals, and HADEED chairman, said that the new plant will make HADEED self-sufficient in feedstock, intermediate and finished products.

 

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