Saudi-Korean JV breaks ground on $240mn stainless steel pipes production facility
The facility will increase the Kingdom’s capacity to develop and manufacturer energy-related products in-country
SeAH GSI, a joint venture (JV) between the Saudi Arabian Industrial Investments Company (Dussur) and Korean steel manufacturer (SeAH CS), have broken ground on a first-of-its-kind stainless steel seamless pipes and tubes production facility in Saudi Arabia.
In a statement, the firms said that the new plant, which is being built at a total investment of US $240mn, will be developed on a 178,000sqm area within the King Salman Energy Park (SPARK). It added that the facility is likely to begin operations in 2025.
The ground-breaking for the project comes after the signing of a deal between SPARK and SeAH GSI in September 2022, for the development of a production facility that will increase the manufacturing of energy-related products in Saudi Arabia, thus reinforcing localisation efforts, in line with Saudi Aramco’s In Kingdom Total Value Add programme, and the National Industrial Strategy, which is part of Vision 2030, the statement explained.
Once completed, the facility will have an operating capacity of 20,000t of seamless pipes and tubes, per annum.
In late June 2022, Saudi Arabia said it would launch 93 utility infrastructure projects worth $2.26bn and, in early August 2022, SeAH and Aramco set up specialised steel project.
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 top executives from Saudi Aramco, Dussur, SeAH Holding and SPARK.
Speaking at the ground-breaking ceremony, Al Qahtani stated, “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 localising the energy supply chain to drive a diverse industrial economy, catalysing the National Industrial Strategy, in line with Vision 2030.”
SeAH’s GSI CEO Young Soon Kim added that with this production facility, the Korean group aims to become the pioneers of specialty steel pipe and tube manufacturing in Saudi Arabia.
He concluded, “Our plan is to produce and supply 20,000t 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 JV partnership, which could remain as a major footprint in KSA’s history of manufacturing sector for decades to come.”
In mid September 2022, Saudi Arabia said it would build iron and steel projects worth $9.31bn.
