Dussur JV awards EPC contract for $266m Saudi steel plant

Saudi Arabia – Seah Gulf Special Steel said it has reached two agreements for its new steel tube plant in Dammam under construction for an investment of more than SR 1 billion ($266.3 million) – an EPC contract with the Saudi company Sendan International Company for its construction and a land lease with King Salman Energy City (Spark).

Seah Gulf Special Steel is a joint venture between the Saudi industrial investment company Dussur and the Korean group SeAH Changwon Integrated Special Steel Corporation.

Announcing it at the signing ceremony, Dussur said it had awarded an engineering, procurement and construction (EPC) contract worth SR260 million ($69.2 million) to Sendan International Company, a leading construction group based in Saudi Arabia, for the new steel plant.

A major player in the Saudi industrial sector, Sendan has developed a strong position as an entrepreneur in the oil, gas, petrochemical, power, water and mining sectors in the kingdom.

Under the agreement, the entire project will be completed in 34 months and commercial operation of the plant will begin by 2025, Dussur’s statement said.

A major industrial group in the region, Dussur is owned by the Saudi sovereign wealth fund Public Investment Fund (PIF), the state oil giant Aramco and the global diversified chemicals company Sabic.

Also during the ceremony, Dussur signed an industrial land allocation agreement with Spark for the establishment of its new steel tube factory in Dammam.

Within this framework, the Saudi Energy Park will allocate 177,845 m² of land to SeAH Gulf Special Steel to build its plant which, once operational, will have a production capacity of 20,000 tons per year.

Dussur emphasized that the importance of the SeAH Gulf Special Steel plant lies in the opportunities to attract global expertise and localize the stainless steel pipe industry, serving the oil and gas sectors in addition to the energy and water.

Choosing Spark for his project, Dussur said it was the best choice as it is one of the most developed industrial cities in the kingdom. In addition, it also provides integrated industrial services, including electricity and gas supply, in addition to water and communication services, he added.

Seah Gulf Special Steel pointed out that once the plant is commissioned, about 240 technical and engineering job opportunities will be available for young Saudis. This will also help the kingdom reduce its dependence on imports of strategic goods into the country.

Dussur CEO, Dr Raed Al Rayes, said: “We had established our company as a model of sustainable investment to help 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 Saudi Arabia and also in the Mena region.”

It is in line with Dussur’s mission to empower the industrial sector, maximize development impact through the transfer and localization of industrial knowledge, create professional jobs for Saudis and attract foreign direct investment. , in line with the goals of Saudi Vision 2030,” he added. .

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