Watania Steel eyes Tadawul listing after capacity ramp-up; demand, price surge likely in Q4 2022

Jamil Alsaffaf, Co-Founder and Managing Partner of Watania Steel Co.

Watania Steel Co. is planning to list its shares on Saudi Arabia's main market by 2024 after expanding its production capacity, according to company Co-Founder and Managing Partner Jamil Alsaffaf.

The company recently announced the launch of a new production line to double output to 750,000 tons per annum (p.a.) of steel rebars and iron rolls, Alsaffaf told Argaam on the sidelines of the second Saudi International Iron & Steel Conference 2022 in Riyadh.

The company sold 120,000 tons of steel rebars in H1 2022, though summer months usually witness softer demand, Alsaffaf said, adding that the company started the production of the steel rebars in 2010 with a capacity of nearly 36,000 tons. The company currently produces approximately 300,000 tons per annum.

Alsaffaf expected improved iron demand by Q4 2022 amid the rapid pace of projects, which will increase prices by nearly SAR 100 / ton.

Watania Steel caters to several mega projects in the Kingdom, including King Salman Park and Diriyah Gate projects. It will also supply 20% of its production to NEOM mega city over the coming period.

Watania Steel was established in 2008 to produce rebar that meets the growing demand in the Kingdom.

The firm is a quality-focused manufacturing company that produces 450,000 tons of reinforcing steel bars and billets annually from its steel mill in Riyadh.

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