Italy’s Danieli has awarded the civils works contract at its $630m Jubail Steel Billets Facility to the local Al-Tamimi & Company.

Danieli was selected as the engineering, procurement and construction (EPC) contractor for the plant in the fourth quarter of 2009 by Saudi Arabian Fertiliser Company (Safco) and Saudi Iron and Steel Company (Hadeed), the two joint venture partners behind the project.

“Al-Tamimi will be doing some of the civil works, but not all,” a source close to the project says. “Danieli has its own construction company [Danieli Construction International] who will pick up most of the major packages on this contract.”

The value of the contract awarded to Al-Tamimi was not disclosed and work is expected to take four to six months to complete.

The Jubail Steel Billets Facility will have a capacity of 1 million tonnes-a-year when completed in the fourth quarter of 2012 and represent an annual increase of 28 per cent of the kingdom’s steel production.