Al Yamamah Steel approves SAR 33 mln expansion of pipe factories in Jeddah, Dammam

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Al Yamamah Steel Industries Co.'s board of directors approved, on Feb. 8, increasing the annual production capacity of pipe and tube factories in Jeddah and Dammam, at the cost of SAR 33 million.

The company said in a statement to Tadawul that the annual production capacity will be increased from 276,000 tons to 360,000 tons, noting that operations will commence from March 1, 2021.

The project will be self-financed through the cash collections from customers, the company said, expecting it to increase the revenues and net profits based on the growth in the annual production capacity.

The completion of the project is expected in Q1 2022, which will reflect positively on Q2 2022 revenue and profit.

The pilot operation will run three months, the statement said, adding that the commercial production will be launched in Q2 2022.

The expansion in capacity will increase the market share of Al Yamamah and provide all the required sizes of steel pipes for the solar power projects.