King Salman Energy City SPARK - 12\9\2022
In an advanced step for the SeAH Gulf Special Steel, owned by the Saudi Arabian Industrial Investments Company Dussur, and the Korean SeAH changwon Integrated special steel Corporation, an industrial land allocation agreement was signed with King Salman Energy City SPARK to establish the first factory specialized in the industrial field of manufacturing Stainless Steel Seamless Pipes in the Middle East and North Africa Region, with an investment of more than 1billion Saudi Riyals.
The agreement represents a strategic partnership between SeAH Gulf Special Steel and Spark to allocate a land area of 177,845 square meters to establish SeAH Gulf Special Steel factory, with a production capacity of 20,000 tons per year. And the importance of SeAH Gulf Special Steel factory lies in the opportunities of attracting global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in addition to energy and water.
Spark location has been chosen because it is one of the most developed industrial cities in the Kingdom, as it provides integrated industrial services that include electricity and gas supplies, in addition to water and communication services.
On the same day, SeAH Gulf Special Steel signed another agreement granting Sendan International Company the engineering, procurement, and construction contract (EPC) valued at more than 260 million Saudi Riyals, to build the factory, and for a period of 34 months. Sendan has developed a strong position as a contractor in the oil, gas, petrochemical, power, water, and mining in the Kingdom, It is worth noting that this construction contract will achieve local content and localization rates that are compatible with the Local Content and Government Procurement Authority.
It is expected for the commercial operation of the factory to start by 2025, which will result in the transfer and localization of industrial knowledge in the Kingdom, and the creation of 240 technical and engineering job opportunities for the sons and daughters of the Kingdom, in addition to reducing dependence on imports for the of strategic goods in the Saudi Arabia. This was confirmed by the CEO of Dussur, Dr. Raed Al Rayes said: “Dussur was established to be a sustainable investment model that helps develop key industrial sectors and their associated value chains in the Kingdom. This joint venture is an important achievement that will meet the current demand for stainless steel pipes in the Kingdom of Saudi Arabia and the MENA region, in line with Dussur’s mission to empower the industrial sector, maximizing the developmental impact through the transfer and localization of industrial knowledge, creating professional jobs for Saudis, and attracting foreign direct investments, following the objectives of the Saudi Vision 2030.”
Dr. Al Rayes also added that these two signed agreements confirm the ability of Dussur, owned by the Public Investment Fund, Saudi Aramco and Sabic rapid implementation of announced projects.