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Rajhi Steel, the Saudi manufacturer, said it is to boost its production capacity by 1 million tonnes next year as hunger for the material intensifies amid the country's high construction activity.
The Riyadh-based company said 750,000 tonnes of this capacity will be in rebar, with the remaining amount produced in the form of steel rolls, its marketing director said today.
"The steel rolls will be able to supply to a variety of uses, from pipes and sheets to other applications," Faisal bin Edan said.
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Around 95% of the company's output, mostly rebar, remains within Saudi Arabia as per regulation, with the remaining 5% of 'commercial' steel such as that produced in rolls exported around the Middle East, he said.
The expansion plans are as a result of growing demand in the major areas of construction around the kingdom, which includes the construction of new major urban areas such as King Abdullah Financial District in the capital, the Jabal Omar development in Makkah and King Abdullah Economic City near Jeddah.
Edan added that the company supplies to all the major government projects, typically providing between 20-30% of the requirements for steel.
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The company in February kick-started its project to develop heavy steel products that will produce steel for high-specification industries, such as transport. the kingdom mhas also poured billions into developing its infrastructure, including new domestic airports as well as upgrades to hubs in Jeddah, Makkah and Madinah. It has also invested in rail projects, including the Haramain High Speed Rail project that will connect the two Holy Cities with Jeddah, as well as the Makkah Light Rail system.
"We have invested SAR 14 billion in our heavy steel business. This will produce the kind of high-specification steel required for projects such as airports as well as planes and other areas," he said.
"We have only just purchased the land now and we are currently tendering for the main construction contract. We are looking for big companies to be able to develop the project very fast as we have scheduled the new facility to come on-line by 2016."
The facility is expected to deliver 4 million tonnes annually.
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