PIF official says steel plate complex to boost industrial development

Muhammad AlDawood, Head of Industrials and Mining Sector at Public Investment Fund

The development of an integrated steel plate manufacturing complex in Ras Al-Khair will enhance industrial development in the Kingdom, Muhammad AlDawood, Head of Industrials and Mining Sector at the Public Investment Fund (PIF), told Argaam.

He added that the facility will cater to the Saudi market's needs and enable the Kingdom to become a leader in steel supply, noting that the project will contribute to providing new job opportunities and help reduce dependence on imported steel plates.

The project will leverage the fund's strong financial and investment experience; hence it will supply steel plates to a number of projects implemented by PIF subsidiaries.

Further, the complex aims to bolster the local manufacturing sector by localization of the heavy steel plate industry, as well as the transfer of knowledge and creation of export opportunities, in addition to satisfying the Saudi market's needs.

Mining is one of the PIF's strategic sectors, and the fund is keen to invest directly or through its subsidiaries in the sector's entire value chain, which includes mining, manufacturing, as well as manufacturing of final products.

AlDawood expects the project to significantly reduce dependence on imported steel sheets, to serve customers in many strategic industrial sectors. This includes the manufacturing of pipelines, rigs, offshore platforms, tanks, pressure vessels, shipbuilding, in addition to serving the marine, construction, and renewable energy sectors.

The project's strengths will be complemented by the PIF's strong financial and investment experience, in addition to Saudi Aramco's energy and industrial services system, as well as the expertise of Baosteel in the manufacturing of steel plates.

Saudi Aramco, Baoshan Iron & Steel Co., Ltd. (Baosteel) and the PIF signed a shareholders’ agreement to establish an integrated steel plate manufacturing complex in Ras al-Khair Industrial City, according to data available with Argaam.