Under the SR 54 million ($14 million) contract, Danieli will install a vacuum degassification unit in the plant, adding new steel grades to Hadeed's flat products range and improving the quality of its present products.

The facility will enable Hadeed to produce steel grades required for the manufacturing of sour gas and oil pipelines, as well as for industrial appliances and vehicles.

The project is part of a larger scheme to double Hadeed's flat products capacity to 2 million tonnes a year (t/y). Under the expansion programme, Hadeed will also raise its long products capacity to 3 million t/y from the existing 2.5 million t/y. The bulk of the new capacity is expected to be sold on the domestic market.

International companies are gearing up to submit bids to Hadeed by the end of March for the contract to expand the company's hot rolling mill (MEED 14:2:03).