Arab News reported that a steel plant is being constructed in the Jazan Economic City in the Kingdom's southern region at a total cost of SAR 10 billion. The plant's first phase will be ready by the end of this year and start production early next year to support the region's construction boom.

The company is owned by Pan-Kingdom Investment and Qatar Steel Company.

Mr Faiz Nasser Al-Dossary ED of South Steel "This is first such project in the southern region.”

He disclosed plans to establish a number of related plants inside the complex.

He said “We have completed the first phase of the project covering a million square meters at a cost of SAR 1.3 billion. Steel mill would produce 1 million tonne of steel billets and 500,000 tonnes of rebar.”

The project is being implemented by South Korean STX group. STX Heavy Industries provides full cale engineering and construction services for rolling mill plants, especially for long products such as round bars and rebars.

South Steel will produce steel through the EAF-CC route, and therefore, depend on import of raw materials like DRI/ HBI & steel scrap. It will supply 1 million tonne of liquid steel, 1 million tonneof billets of sizes 130mmx130mm and 150mmx150mm, at casting speeds of 4.5 meters per minute and 3.8 meters per minute respectively, and 0.5 million tonnes of construction quality rebars.

South Steel's five year plan includes construction of a new rolling mill by 2012 to supply 0.5 million tonnes of rebars, a Cut to length & Bending Process Unit to process 100,000 tonnes per annum & an Epoxy coating unit to process 60,000 tonnes per annum at a total investment of SAR 450 million.

The plan includes construction of a new melt shop of 1 million tonnes to produce billets, rebars and rods at a total investment of SAR 1.6 billion by 2014.

A palletizing plant to produce 6 million tons of green pellets and an Iron Ore Hub to handle 12 million tonnes to produce billets, rebars and rods at a total investment of SAR 2 billion by 2015, the company said. Beyond 2015 it intends to establish a new melt shop and DRI plant to produce 1 million tonnes of slabs and blooms, 2.6 million tonnes of DRI a total investment of SAR 4 billion.

(Sourced from arabnews.com)