The local Al-Tuwairqi Group (ATG) has awarded South Korea's Posco Engineering Company a contract to provide equipment for a greenfield steel plant in Dammam. Located in the second industrial area, the plant is expected to take about two years to complete.

The estimated SR 1,200 million ($320 million) project calls for the construction of a flat steel plant with capacity of about 2 million tonnes a year. ATG is expected to appoint a consultant by the end of July, although Posco will also provide technical assistance.

Three packages covering civil, electrical and mechanical works are due to be issued for tender by the third quarter. The new project is expected to be financed through a mixture of debt and equity.