(Corrections made in paragraphs 1, 2 and 3 to correct the name and constituents of the joint venture, and counter-party to the agreement with SPARK) 

Saudi Arabia’s energy city King Salman Energy Park (SPARK) announced on Monday that it has signed an agreement with SeAH Gulf Special Steel to establish a seamless stainless steel pipe factory at an investment of 1 billion Saudi riyals ($270 million).

SeAH Gulf Special Steel is a joint venture between the UAE's SeAH Steel and the Saudi Arabian Industrial Investments Company (Dussur).

SPARK said in a tweet that the project will help localise a strategic industrial segment, which supports the energy sector and enable knowledge transfer in the Kingdom.

The agreement was signed on the side lines of the second Saudi International Iron and Steel Conference in Riyadh as part of the National Steel Strategy under the Vision 2030 program.

On Tuesday, Zawya Projects had reported that Saudi Arabia is planning three new projects in the iron and steel sector worth 35 billion Saudi riyals ($9.31 billion).

An press statement by the Ministry of Industry and Mineral Resources said the projects include an integrated steel plate production complex with a capacity of 1.2 million tonnes per year to supply manufacturers of oil pipelines, platforms, and storage tanks, and the ship building industry;  a steel rolling mill with annual capacity of  four million tonnes of hot rolled coils and one million tonnes of cold rolled coils, and 200,000 tonnes of tin-plated steel to serve automotive, food packaging, household appliances, and water pipe manufacturers and a steel billets plant with a production capacity of one million tonnes/year to support the manufacture of seamless steel pipes for the oil and gas industry.

(Writing by D Madhura; Editing by Anoop Menon)