Saudi Arabia's Al Yamamah Steel Industries has taken a new step towards launching its planned steel billet production. On August 24, its subsidiary, which manufactures reinforcing steel, received financing from the Arab National Bank in the amount of 500 million Saudi riyals ($133 million). These funds will be used for the construction of a new plant for the production of steel blanks.
The project has been under implementation for some time, and Al Yamamah has consistently taken steps to finance it. Earlier, it increased the capital of its subsidiary for the production of reinforcing steel by 300 million Saudi riyals, while Al Yamamah itself contributed 75.6 million Saudi riyals from its own funds as part of the subscription. In July, an agreement was also signed with Italian equipment manufacturer Danieli in the amount of 270 million Saudi riyals for the manufacture, supply and installation of equipment for the production of blanks. The contract is for two and a half years.
Although the announcement of the new financing does not disclose information about the location of the plant or its production capacity, earlier information related to the project pointed to Yanbu as a construction site and called the planned capacity of the enterprise about 1 million tons of blanks per year. The new plant will expand Al Yamamah's presence in the billet production segment and support the company's long-term plans to create a more integrated steelmaking structure in Saudi Arabia.
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