Luxembourg-based Tenaris, a leading global supplier of steel tubes and related services, said that its CEO and chairman, Paolo Rocca, recently participated and spoke on the panel of the first Saudi Iron & Steel Conference, in Riyadh, Saudi Arabia.
Speaking on the panel themed ‘Saudi's Potentially Pivotal Role in Global Steel’, he focused on the considerable investment into steelmaking and the processing capacity recently seen in Saudi Arabia as the country focuses on becoming more self-sufficient, said a statement.
The two-day conference, organised by Saudi Arabia’s National Committee for Steel Industry, saw a large gathering of global industry leaders attend exhibitions and workshops about the transformation of the Kingdom’s economy and opportunities for its steel industry.
During his speech, Rocca tackled three major points required to develop the industrial sector in Saudi Arabia:
Firstly, the willingness of the Saudi government to defend local content and take concrete actions to promote the growth of local manufacturing, in order to support the energy and construction sectors. Rocca cited the example of the new United States-Mexico-Canada Agreement. Previously, the US proposed that only vehicles with 62.5 per cent US content by value be allowed to enter the US duty-free. However, under current North American Free Trade Agreement rules, vehicles must have at least 75 per cent regional value content enter the US duty-free – with at least 70 per cent of steel produced in the region- in order to have access to the intra-trade.
Secondly, Rocca made a point on the regional approach to grow manufacturing in the GCC countries, building on the strong oil & gas value chain that the whole region has.
Lastly, Rocca highlighted the investments that the Saudi government has been promoting in education, as well as how it has been strengthening the human resource base within the kingdom.
He added: “Youth accounts for approximately 70 per cent of the country’s population. These are the people who are willing to learn and to drive the transformation and the growth of the local industry”.
Commenting on Tenaris’s participation, Rocca stated: “We are honoured to have been invited to take part in Saudi’s first I and steel conference as we continue to expand our footprint and lend our expertise to the kingdom’s steel industry. There is a great deal of potential in Saudi Arabia for further investment into value-added steel production to support the kingdom's drive for economic diversification and cement its place as the regional steelmaking hub.” – TradeArabia News Service