King Salman Energy Park (SPARK), the leading energy industrial ecosystem, celebrated the groundbreaking of SeAH Gulf Special Steel Industries’ (SeAH GSI) new production facility.
SeAH GSI, a joint venture between the Saudi Arabian Industrial Investments Company (Dussur) and the leading Korean steel manufacturer - SeAH CSS, is building the first of its kind stainless-steel seamless pipes and tubes production facility in Saudi Arabia.
The groundbreaking ceremony was attended by HE Park Joon-yong, the South Korean Ambassador of Saudi Arabia, and Eng. Saif Al Qahtani, President and CEO of SPARK, along with executives from Saudi Aramco, Dussur, SeAH Holding and SPARK.
The new facility, which is valued at almost SR 900 million ($240 million), will span almost 178,000 square meters and will have the operating capacity to produce 20,000 tons of seamless pipes & tubes per annum. The facility is expected to begin operations in 2025, generating hundreds job opportunities.
SPARK’s President and CEO, Saif Al Qahtani, said: “We are delighted to celebrate the groundbreaking of a first of its kind production facility in the Kingdom. At SPARK, we aim to facilitate a world-class ecosystem that enables growth and encourages innovation for local and international investors. I am confident that the resources provided at SPARK will allow SeAH GSI to thrive and succeed as it enters a new chapter in its expansion journey. As a national megaproject, SPARK is committed to localizing the energy supply chain to drive a diverse industrial economy, catalyzing the National Industrial
Strategy, in line with Vision 2030.”
SeAH’s GSI CEO, Young Soon Kim, said: “SeAH GSI is targeting to be the pioneers of specialty steel pipe and tube manufacturer in the blessed land of the Kingdom of Saudi Arabia, by starting with the establishment of manufacturing facility in SPARK. SeAH GSI plans to produce and supply 20,000 tonnes of high value added stainless seamless pipes and tubes from this very facility that we are building here today. We are very proud of our successful beginning of SeAH GSI and hope that we could be the perfect example of successful Joint Venture partnership which could remain as a major footprint in the Kingdom of Saudi Arabia’s history of Manufacturing sector for decades to come.”
The groundbreaking ceremony comes following the signing of an agreement between SPARK and SeAH GSI in September 2022 to develop the production facility, which will increase the manufacturing of energy-related products in Saudi Arabia, reinforcing the Kingdom’s localisation efforts in line with Saudi Aramco’s In-Kingdom Total Value Add (iktva) program and the National Industrial Strategy, as part of Vision 2030.—TradeArabia News Service