Saudi Arabia has launched three projects in the iron and steel sector with a combined production capacity of 6.2 million tons and a value of around $9.3 billion.
The announcement was made by Mr. Bandar Al Khorayef, Saudi Minister of Industry and Mineral Resources. One of the projects is to construct an integrated iron sheet production complex with a capacity of 1.2 million tons per year, with the complex focusing on shipbuilding, oil pipes and platforms, and enormous oil reservoirs.
During the inaugural speech at the Saudi International Iron and Steel Conference, Mr. Al Khorayef said that another project is being negotiated with international investors, adding that the project entails building an integrated iron surface production complex with an annual capacity of 4 million tons of hot rolled iron and one million tons of cold rolled iron, as well as 200,000 tons of tin-plated iron and other products.
The complex intends to serve the automotive, food packaging, household appliances, and water transportation pipe sectors. Additionally, a factory will be established to produce circular iron blocks with an estimated production capacity of 1 million tons per year, which will be the main introduction to the oil and gas industry’s unwelded iron pipes.
Mr. Al-Khorayef emphasized that the National Plan for the Structuring of the Iron and Steel Sector contains 41 recommendations to enable and sustain the sector. These include reviewing and approving 16 policies and legislation, as well as collaborating with the private sector on a number of long-term solutions such as the establishment of an iron academy and a research and development center to increase the efficiency of factory operations and create high-quality jobs for Saudis.
The Ministry is also working on reducing imports by 50 percent, with an emphasis on maintaining a financially and operationally sustainable sector and ensuring the availability of critical supply chains such as iron ore.