Saudi Arabia’s National Steel Company has signed a usufruct agreement with Salalah Free Zone Company (SFZ) to build the largest iron industries complex in Oman at an investment of $500 million.

The construction work on the mega project will start in the first quarter of 2020, said SFZ in its twitter account.

The new complex, once completed will create 500 direct jobs, and is aiming at a 150,000-tonne capacity, it added.

"This project is a significant leap for investments in the region, as the plant will use the latest technology and innovative engineering designs that will help in reducing the construction cost up to 20 per cent and project time up to 50 per cent in steel related products," remarked Ali Tabouk, the chief executive of SFZ, after signing the deal with Sheikh Ahmed Al Shahin, the chairman for National Steel Company Complex in Riyadh.

“Sixty-five per cent of the factory’s production will be exported to the regional markets and it will manufacture various steel products that are used in the manufacture of refrigerators, generators, panels, steel roofs, heavy structures for large commercial and residential buildings, bridges, commercial complexes, factories and gas stations,” he added.

Saudi National Steel is a fully-owned unit of Abu Dhabi-based Al Nasser Industrial Enterprises (Anie), a major industrial conglomerate with manufacturing activities in sectors like steel, polymers, structural fabrication and industrial intermediates located across the GCC and Mena region.

An ISO 9001:2015-certified company, Saudi National Steel has a billet manufacturing plant with a capacity to produce 75,000 tonnes per annum.-TradeArabia News Service