Jun 06 2009
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South Steel gets SR600m loan
The new plant in question will be located in Jizan Economic City, one of 4 new economic centers planned by Saudi Arabia to boost its oil based economy and creates news jobs. Jizan Economic City is situated on the southern Red Sea coast, close to the main trade routes to Europe, the Far East and the Gulf.
SSC'S Jizan plant is expected to have an annual production capacity of 1 million ton of plate and 500,000 tons of reinforced bars. SSC began the construction of the plant in January 2009. Steel production is scheduled to start in 2011.
The SIDF loan received by SSC is one of the largest granted to the steel industry. The Banque Saudi Fransi will provide the remainder of the financing.
Suleiman Al-Harbi, chairman of SSC, said "the plant will eventually be expanded to bring the overall investment in the project to about SR10 billion." He added that once expanded, the plant would cover Saudi Arabia's domestic steel plate needs.
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