Saudi Arabia to see $1bn factory project built
International companies team up to invest in Ras Al-Khair plant
A group of international companies have teamed up to invest in a $1bn (SAR 3.75bn) industrial and construction equipment factory in Ras Al-Khair, Saudi Arabia.
The four companies are from Saudi Arabia, Germany, Czech Republic and India.
Contract negotiations for the construction of the project are thought to be in the final stages, with work expected to begin in early 2015, according to Arab News.
The plant is claimed to be the first one in the Middle East to produce seamless pipes with diameters of 19mm to 137mm.
In the first stage of the project the production capacity is expected to reach 600,000 tonnes of steel in which seamless pipes, iron, and iron alloy will be made.
Salama Al-Enizi, chairman of Gulf Tubing Company GTC and the owner and developer of the project, told a press conference in Alkhobar that jobs at the plant are expected to be available by summer 2017, suggesting that the project should be complete by early 2017.
He also pointed out that the plant will manufacture drill pipes, oil and gas well covers, pipeline steam boilers, heat exchangers, petroleum furnaces, construction pipelines, mechanical equipment and small pipelines.