SeAH GSI, a joint venture between the Saudi Arabian Industrial Investments Company (Dussur) and the leading Korean steel manufacturer - SeAH CSS, has broken ground on its first of its kind stainless-steel seamless pipes and tubes production facility in Saudi Arabia.
The new plant, being built at a total investment of SR900 million ($240 million), will come up on a 178,000 sq m area within the premises of King Salman Energy Park (Spark), a leading energy industrial ecosystem located in the Eastern Province of Dammam. It is likely to begin operations in 2025.
The groundbreaking comes following the signing of a deal between Spark and SeAH GSI in September last year to develop the production facility, which will increase the manufacturing of energy-related products in Saudi Arabia, thus reinforcing the KSA's localization efforts in line with Saudi Aramco’s In-Kingdom Total Value Add (iktva) programme and National Industrial Strategy, as part of Vision 2030.
The ceremony was attended by Park Joon-yong, the South Korean Ambassador to Saudi Arabia, and Engineer Saif Al Qahtani, President and CEO of Spark along with ttop executives from Saudi Aramco, Dussur, SeAH Holding and Spark.
On competion, the key facility will have the operating capacity to produce 20,000 tonnes of seamless pipes and tubes per annum.
Speaking at the groundbreaking ceremony, Al Qahtani said: "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 the energy park will allow SeAH GSI to thrive and succeed as it enters a new chapter in its expansion journey."
"As a national megaproject, we are committed to localizing the energy supply chain to drive a diverse industrial economy, catalyzing the National Industrial Strategy, in line with Vision 2030," he added.
SeAH’s GSI CEO Young Soon Kim said with this production facility, the Korean group aims to become the pioneers of specialty steel pipe and tube manufacturing in Saudi Arabia
"Our plan is 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 KSA’s history of manufacturing sector for decades to come," he added.-TradeArabia News Service