Al-Rajhi prepares to break ground on Jeddah steel plant

23 March 2010

Rebar plant in Saudi Arabia to cost $215m and will have capacity of 1 million tonnes a year

Italian contractor Danieli will break ground on the new Al-Rajhi Steel Industries Company steel plant at Jeddah in April, according to a senior official at the client.

Construction deals to to build the plant were signed with Danieli in February, says Khalid al-Sulaimani, executive vice president at Al-Rajhi. Upon completion the plant will produce 1 million tonnes a year (t/y) of reinforced steel bars used in the construction industry, known as rebar.    

“The contract [with Danieli] is on a lump sum turnkey basis and work will start as soon as possible,” Al-Sulaimani says. “The contract will last for 22 months.”

Al-Sulaimani declined to confirm the exact budget, but MEED understands that it is close to $215m, down from an original estimate of $308m.

Al-Rajhi is one of the top three steel producers in the kingdom. It also has a plant in Jeddah that produces 850,000 t/y of steel billets as well as two other plants in Riyadh producing bars and tubes, pipes and sheets with a combined capacity of 750,000 t/y.

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