Saudi ministers revealed an endeavor to strengthen the iron and steel industry in the Kingdom, in parallel with plans to launch economic zones and initiatives to advance local supply chains and logistics.
Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef announced that the ministry was working through the National Center for Industrial Development to set a national plan aimed at restructuring the iron and steel industry, in cooperation with international experts and partnerships with government agencies and private iron producers, in order to sustain the sector’s growth and raise its capabilities.
According to Al-Khorayef, the plan includes 41 recommendations that support the localization of steel products and reduce imports rates by 50 percent.
Addressing the second Saudi International Iron and Steel Conference in Riyadh on Monday, the minister revealed three iron and steel projects, with a value exceeding SR35 billion ($9.3 billion), and a total production capacity of 6.2 million tons.
One of the projects includes the construction of an integrated iron sheet production complex with a capacity of 1.2 million tons per year, focusing on shipbuilding, oil pipes and platforms, and enormous oil reservoirs.
Al-Khorayef added that another project was being negotiated with international investors, for the building of an integrated iron surface production complex with an annual capacity of four million tons of hot rolled iron and one million tons of cold rolled iron, as well as 200,000 tons of tin-plated iron and other products.
The complex intends to serve the automotive, food packaging, household appliances, and water transportation pipe sectors.
For his part, Saudi Investment Minister Khalid Al-Falih emphasized that the Kingdom had a world-class infrastructure, including a wide network of 40 industrial cities, some of which are dedicated to energy-intensive industries.
According to the minister, plans are underway to launch four special economic zones, as well as a strategic initiative, called “Attracting Global Supply Chains”, which seeks to attract foreign direct investment aligning it with the Saudi private sector.
