Posted on 06 Feb 2023
Saudi Arabia's non-oil economy plans work on track. Another investment project announced in September 2021 is on its way and on a timeline as scheduled.
SeAH Gulf Special Steel Industries (SeAH GSI), a joint venture between the Saudi Arabian Industrial Investments Company (Dussur) and the Korean steel manufacturer - SeAH CSS, kicked off the groundbreaking in the King Salman Energy Park (SPARK) in northern Saudi Arabia, Kallanish notes.
The new facility has an estimated investment cost of SAR 900 million ($240m), will span almost 178,000 square meters and will have the operating capacity to produce 17-20,000 tonnes of seamless stainless pipes & tubes per annum expected to be operational in 2025, Spark says in an official statement seen by Kallanish.
The energy, oil refining and chemical sectors will use the stainless seamless pipe, and this high value-added product will diminish imports to Saudi Arabia and the country's dependency.
"SeAH GSI is targeting to be the pioneer of speciality steel pipe and tube manufacturer in the blessed land of the Kingdom of Saudi Arabia by establishing a manufacturing facility in SPARK. SeAH GSI plans to produce and supply 20,000 tons of high-value-added stainless seamless pipes and tubes from this facility that we are building here today.", said SeAH GSI chief executive Young Soon Kim.
"We are very proud of our successful beginning of SeAH GSI and hope that we could be the perfect example of a successful joint venture partnership which could remain a major footprint in the Kingdom of Saudi Arabia’s history of the Manufacturing sector for decades to come.”, he added.
"We are delighted to celebrate the groundbreaking of a first-of-its-kind production facility in the Kingdom. ... I am confident that the resources provided at SPARK will allow SeAH GSI to thrive and succeed as it enters a new chapter in its expansion journey. As a national megaproject, SPARK is committed to localising the energy supply chain to drive a diverse industrial economy, catalysing the National Industrial Strategy, in line with Vision 2030,” said Spark’s president and chief executive, Saif Al Qahtani,
Dussur, owned by Aramco, Sabic and Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has been signing MoUs with regional and international enterprises in the automotive, chemicals and industrial metals sectors to bring strategic industries to Saudi Arabia and support the kingdom’s industrialisation (see Kallanish passim).
Source:Kallanish
