Decision expected on Saudi Arabian steel complex in late 2012
Saudi Arabia’s Al-Rajhi Steel has received both commercial and technical bids for the engineering, procurement and construction (EPC) packages at its planned $3bn steel complex at King Abdullah Economic City near Jeddah.
MEED reported in early July that the bid submission date had been extended by Al-Rajhi until July 31.
“Bids are in now and a decision is expected in either October or November,” a source familiar with the project says. “There is no indication yet as to how close the commercial bids are to the budget assigned to the project by Al-Rajhi.”
The partnerships agreed by the technology providers and EPC contractors include:
- Danieli (Italy)/Daelim Industrial (South Korea)
- Siemens Steel (Austria)/Samsung Engineering (South Korea)
- SMS Meer (Germany)/Samsung Engineering (South Korea)
- SMS Siemag (Germany)/Hyundai Engineering & Construction (South Korea)
The scope of works for the Al-Rajhi complex includes a direct-reduced iron (DRI) plant producing 1.8 million tonnes a year (t/y) of steel, two steel shops produce billets, blooms and slabs, a mill producing long products and a mill producing flat products, as well as a cold-rolling process plant.
The project is being fast-tracked because of a time limit placed on gas allocation from Saudi Aramco. The financing of the project is still ongoing.
The complex will be the largest steel facility ever built in the region in one phase.
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