Heat Treat Industry News

November 23, 2009

SABIC, Danieli ink deal to build steel plant

DUBAI - Saudi Basic Industries Corp said Sunday its unit, The Saudi Iron and Steel Co., or Hadeed, signed a contract with Italian steel mills builder Danieli & Co to build a steel plant in the kingdom.

The new plant will have a production capacity of 1 million tons of steel billets a year, Sabic said in a statement posted on the Saudi bourse website.

Danieli will also build a new rolling mill for long products for Hadeed, Saudi Arabia's largest steel maker, with an annual capacity of 500,000 tons.

Both projects are expected to start production in the second half of 2012 and will lift Hadeed's total production capacity to 6 million tons a year, the statement said, without giving the value for the two projects.

The steel plant and rolling mill make Hadeed self-reliant for all primary, intermediate and final steel products, the statement added.

Hadeed competes with Al-Rajhi Steel and Al-Ittefaq Steel Products Co., 76% owned by Al-Tuwairqi Holding Co., in the kingdom, where the government is spending $400 billion to develop infrastructure.

SOURCE: http://business.maktoob.com/

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