Saudi Steel Pipe to partner CDC in Jubail plant
Pipe maker to invest part of IPO proceeds in poly-silicon project
The Saudi Steel Pipe Company has said it will enter as a partner with Chemical Development Company in the construction of its polysilicon plant in Jubail, investing $16.25m in the $533.29m venture.
The plant will be based in Jubail Industrial City 2, and will produce 3,350 metric tonnes of solar-grade polysilicon, the main material used in the manufacture of solar products.
The project was launched last year by Polysilicon Technology Company, a JV between Saudi Arabia’s Mutajadedah Energy Company (MEC), itself a JV between CDC and Swicorp Joussour Company (SJC), and Korean construction and chemicals company KCC Corporation.
In February, PTC signed a $378m lumpsum turnkey engineering, procurement and construction (LSTK EPC) contract for Phase 1 of its polysilicon plant with Hyundai Engineering Company and KCC Engineering and Construction Corporation.
Saudi Steel Pipe manufactures all types of industrial pipes, and is the only company in the region to offer hot induction bending as an alternative to changing pipe directions through welding.
The company has won numerous contracts in the last year, including with Takreer in Abu Dhabi, and repeat business with Saudi Aramco, Saudi's state-owned oil giant.
Mohammed Al Bawardi, sales manager, told CW earlier this year that the company is embarking on a number of projects in Jubail and Dammam, and is looking to expand its sales network into Qatar following the increase in construction activity in the country.
The company said a fifth of its investment into the project will come from the proceeds of its initial public offering in 2009. Saudi Steel Pipe shares closed up 1.1% to SAR22.95 in Riyadh yesterday.