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FINANCIAL NEWS
Rajhi to launch its steel complex at KAEC
24 May 2011
(MENAFN) Rajhi Steel Company’s chairman, Abdul Aziz Al-Aboudi, said that the company would establish a USD4 billion Rajhi steel complex at King Abdullah Economic City (KAEC) in Rabigh of which 50 percent would be later offered to the public through an initial public offering, reported Arab News.
Al-Aboudi added that the complex would provide several stainless steel products that would be needed for many industries such as car industry, gas and steam powered turbines and industrial bearings, adding that the Ministry of Petroleum and Mineral Resources would supply seventy million cubic feet a day of dry gas to Rajhi Steel according to an agreement signed between the two parties.
He also said that the project which would cover 4 million square meters in the industrial area at KAEC would contain several factories that would include a direct reduction iron plant with an annual 1.8 million tons capacity, it would create 1,500 direct jobs and 3,000 indirect jobs. Furthermore, it would include a hot briquetted iron plant with an annual capacity of 650,000 tons and a melt shop with a 2 million tons capacity yearly.
It is worth noting that KAEC project aims at building a new high tech city on the Red Sea coast with businesses, industrial, leisure and residential estates as well as a giant port.
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