Mar 14 2011
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HSBC funds $435m Hadeed steel plant
Monday, Mar 14, 2011
Lender ties up Italian export credit agency-backed advance to purchase Danieli facility
Dubai: HSBC has signed a $435-million (Dh1.59 billion) long-term facility to finance a steel plant and rolling mill supplied by Danieli — one of the world’s top three steel plant suppliers — to Hadeed , a wholly-owned subsidiary of Saudi Basic Industries , or Sabic , the world’s largest petrochemical company by market capitalisation, profits and total assets and the largest listed company in the Gulf Cooperation Council market.
The new plant, located in Jubail in the Eastern Province of Saudi Arabia, will produce one million tonnes per year of pellets and half a million tonnes of rebar. With a total production capacity of six million tonnes, Hadeed will now be able to use their rolling mills at full capacity without relying on imported steel. Production from the new steel plant is expected to commence in the second half of 2012.
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