|
| Owner |
: |
South Steel Company
|
| Shareholders |
: |
Dubai Investments Industries - UAE - 10.00 %
Qatar Steel CompanyQatar Steel Company - Qatar - 20.00 %
Pan Kingdom Investment Company (PKIC) - Saudi Arabia - 60.00 %
|
| Location |
: |
Jizan Economic City, Jizan City, Jizan , Saudi Arabia
|
| Contract Type |
: |
Construction |
| Facility Type |
: |
Steel Plant |
| Capacity |
: |
1,000,000 t/y of steel billets
500,000 t/y rebar |
|
| Background |
South Steel Company plans to construct a steel plant as part of its steel complex in Jazan Economic City, Saudi Arabia.
The steel plant is the first phase of the five year "Steel Cluster" plan to be built by PKIC in Jizan Economic City.
The plant will produce 1 million t/y of billets. Half of the production will be transferred to the rolling mill and the remaining will be sold to local and regional markets.
Corus Consulting Company is the technical and design consultant. |
| Expected Events |
| Schedule |
Contract Phase/Phase |
Description |
| Jun 2012 |
Completion | Project expected to be completed
|
|
| Latest Events |
In May 2012, commissioning of the plant was still ongoing.
In June 2012, the project is expected to be completed. |
| Previous Events |
In February 2012, commissioning of the plant started.
In December 2011, construction of the plant was ongoing.
In August 2010, 25% of construction work was completed and the installation of the structural steel members for the plant was ongoing.
In May 2010, sub-structure works were ongoing. Piling, pile caps and dynamic compaction commenced on the meltshop and rebar and billet storage areas.
In April 2010, Qatar SteelQatar Steel acquired 20% stake in the project. Qatar SteelQatar Steel would provide technical support and supply the plant with sponge iron (DRI).
In February 2010, pile load tests were carried out and the design of melt plant area was completed. Earthwork for the melt plant area was completed and the platform was ready for piling works.
In December 2009, a USD 21 million sub-contract to supply and install a 132 Kv substation was awarded to ABBABB.
On 22 October 2009, the proposed site was handed over to STX and construction of the plant started. An area of 12,000 sq.m. was handed over to ABBABB for the construction of a substation.
In September 2009, the construction contract was awarded to STX Heavy Industries.
In August 2009, the design for the plant was ongoing.
In May 2009, Saudi Jizan Economic City delivered the project site to South Steel.
In September 2008, Dubai Investments Industries (DII) a wholly owned subsidiary of Dubai Investments, bought a 10% share in the project.
In November 2007, a contract for the planning, engineering and supply of plant and equipment was awarded to Concast and SMS Meer. Concast would supply LF operation and metallurgical control system. SMS Meer would supply the rebar rolling mill and the walking-heart furnace.
In November 2006, the project was launched. |
| Scope of Work |
Construction of a steel plant including:
-140-t AC electric arc furnace
-Melting 24 heats/day
-140-t Ladle furnace
-Continuous casting machine
-De-dusting unit
-Water treatment plant
-Calcining plant
-Oxygen plant
-132 Kv substation |
| Financing Source |
KPMG Company InternationalKPMG Company International is the financial adviser.
Hassan Al Molla Office lawyers and Legal Advisers is the legal consultant.
In May 2009, South Steel Company was granted a USD 160 million loan from Saudi Industrial Development FundSaudi Industrial Development Fund.
In February 2009, South Steel Company signed a USD 244 million deal with Bank Saudi FransiBank Saudi Fransi (BSF) to finance the project. |
| Contract Packages |
| Type |
Project Name |
Contract Value |
 |
South Steel Company - Jazan Steel Complex |
USD 2,600,000,000 |
 |
South Steel Company - Jazan Steel Complex - Jazan DRI Plant |
USD 1,000,000,000 |
|
South Steel Company - Jazan Steel Complex - Jazan Iron Ore Hub and Pelletizing Plant |
USD 533,000,000 |
|
South Steel Company - Jazan Steel Complex - Jazan Rolling Mill |
USD 120,000,000 |
|
South Steel Company - Jazan Steel Complex - Jazan Steel Meltshop |
USD 427,000,000 |
|
| Related Projects |
|
| Project News |
|
|
| Schedule | Contract Phase/Phase | Description |
| Nov 2006 |
Planning | Project launched
|
| Nov 2007 |
Supply & Installation | Contract awarded to Concast and SMS Meer
|
| May 2009 |
Planning | Project site delivered to South Steel
|
| Sep 2009 |
Construction | Contract awarded to STX Heavy Industries
|
| 22 Oct 2009 |
Construction | Construction started
|
| Dec 2009 |
Supply & Installation | Contract for the substation awarded to ABBABB
|
| Feb 2010 |
Construction | Design and earthworks for the melt plant area completed
|
| Feb 2012 |
Commissioning | Commissioning started
|
| Jun 2012 |
Completion | Project expected to be completed
|
|
|
Package Project
Talk To Zawya Analyst
Download to PDF