10 March 2004
RIYADH — At a ceremony on Monday night, Mohammed A. Al-Rajhi, chairman of the board of directors of Al-Rajhi Group, and Dario Fabro, executive vice president, Danieli Co. of Italy, signed an agreement for setting up a SR950 million factory in Jeddah for the annual production of 850,000 tons of steel. Those present at the ceremony were minister of labor and social affairs and acting minister of industry and commerce, Dr. Ali Al-Namlah, deputy minister of industry, Saleh Al-Hussaini, the Italian Ambassador Armando Sanguin and officials from both companies.
Speaking to Arab News, the deputy minister said the joint venture reflected the confidence of the international community in the “Saudi economy which is the largest in the Middle East.” The Al-Rajhi group will also play a major role in the government’s Saudization program by employing 250 Saudis at the joint venture steel plant to be opened in Jeddah at the end of 2005.
Al-Hussaini said the Kingdom now had 3,655 factories with a total investment of SR 260 billion and joint ventures constituted 57 percent of the invested capital. Pointing out that the economic reforms would continue, the deputy minister said the use of gas as a fuel would make the industrial projects economically viable. Ambassador Sanguin hoped that Italy which has entered the Kingdom’s gas sector in conjunction with Repsol YPF of Spain, would diversify its trade and economic relations across a broad spectrum. Both countries have good relations in the telecommunications, construction, industrial, commercial, training, jewelry and fashion wear sectors.
Abdul Rahman Al-Rajhi, general manager of Al-Rajhi Steel, said the Al-Rajhi Group had been in the steel business for the last 20 years and that it has seven factories for the production of steel and other allied products.
The new factory will have a state-of-the-art melt shop with a production capacity of 850,000 tons. It will import raw materials until they can be procured locally. The equipment for the plant will be supplied by the Danieli Co. of Italy.
The factory, which is ISO 14000 certified, will apply stringent environmental standards to ensure a healthy environment. State-of-the-art technology will sterilize the ambient environment against pollutants and other health hazards. It will also implement ISO 9000 standards to bring its products into conformity with American, Dutch and Saudi Standards.
RIYADH — At a ceremony on Monday night, Mohammed A. Al-Rajhi, chairman of the board of directors of Al-Rajhi Group, and Dario Fabro, executive vice president, Danieli Co. of Italy, signed an agreement for setting up a SR950 million factory in Jeddah for the annual production of 850,000 tons of steel. Those present at the ceremony were minister of labor and social affairs and acting minister of industry and commerce, Dr. Ali Al-Namlah, deputy minister of industry, Saleh Al-Hussaini, the Italian Ambassador Armando Sanguin and officials from both companies.
Speaking to Arab News, the deputy minister said the joint venture reflected the confidence of the international community in the “Saudi economy which is the largest in the Middle East.” The Al-Rajhi group will also play a major role in the government’s Saudization program by employing 250 Saudis at the joint venture steel plant to be opened in Jeddah at the end of 2005.
Al-Hussaini said the Kingdom now had 3,655 factories with a total investment of SR 260 billion and joint ventures constituted 57 percent of the invested capital. Pointing out that the economic reforms would continue, the deputy minister said the use of gas as a fuel would make the industrial projects economically viable. Ambassador Sanguin hoped that Italy which has entered the Kingdom’s gas sector in conjunction with Repsol YPF of Spain, would diversify its trade and economic relations across a broad spectrum. Both countries have good relations in the telecommunications, construction, industrial, commercial, training, jewelry and fashion wear sectors.
Abdul Rahman Al-Rajhi, general manager of Al-Rajhi Steel, said the Al-Rajhi Group had been in the steel business for the last 20 years and that it has seven factories for the production of steel and other allied products.
The new factory will have a state-of-the-art melt shop with a production capacity of 850,000 tons. It will import raw materials until they can be procured locally. The equipment for the plant will be supplied by the Danieli Co. of Italy.
The factory, which is ISO 14000 certified, will apply stringent environmental standards to ensure a healthy environment. State-of-the-art technology will sterilize the ambient environment against pollutants and other health hazards. It will also implement ISO 9000 standards to bring its products into conformity with American, Dutch and Saudi Standards.
Javid Hassan
© Arab News 2004
