The total investment is 230 million US dollars! South Korea’s Seiya Changwon Special Steel Co., Ltd. jointly established Saudi Arabia’s first ss seamless pipe plant
It is understood that South Korea’s Seiya Changwon Special Steel Company has recently cooperated with Saudi Aramco’s major shareholder Saudi Arabian Industrial Investment Corporation (Dussur) to jointly establish Saudi Arabia’s first ss seamless pipe factory. The total investment of the ss seamless pipe plant project is as high as 230 million U.S. dollars. Among them, Shiya Changyuan Special Steel and Saudi Industrial Investment Corporation jointly invested 120 million U.S. dollars at a ratio of 6:4. The remaining 110 million U.S. dollars will be funded by the Saudi Industrial Cultivation Fund. “SDF (Saudi Industrial Development Fund)” and local financial institutions provide support.
The new seamless pipe plant is located in King Salman Energy Park (SPARK) in the eastern region of Saudi Arabia. The plant covers an area of about 50,000 square meters and has a designed annual production capacity of 17,000 tons. It mainly produces stainless steel seamless pipes. The project is planned to start construction in early 2022, and the goal is to put it into commercial production in 2025. Stainless steel seamless pipes have no welds and have better pressure resistance and corrosion resistance than ordinary steel pipes. They are mainly used in energy, oil refining, and chemical industries.
Seiya Changwon Special Steel stated that after issuing the “Vision 2030” policy, the Saudi government is advancing the world’s largest smart city project Neom, and hydrogen business. Therefore, Seiya Changwon Special Steel will take advantage of the geographical advantage of the joint venture seamless pipe plant. , And actively contract local project orders. In the medium and long term, the joint venture seamless pipe factory is expected to play the role of a major seamless pipe supplier in the Middle East. Seiya Changwon Special Steel expects that this cooperation will become a good cornerstone for Seiya Group to explore the Middle East market.