Saudi Arabia recently announced investment opportunities worth SAR 60 billion (USD 16 billion), at a recent steel conference in Riyadh. The Ministry of Industry and Mineral Resources revealed its plans following a study which addressed steel shortages in domestic markets.
Ministry of Industry and Mineral Resources Restructuring Steel Sector
Saudi`s steel sector has faced challenges in recent years, including the surplus production of rebar products compared to demand. Furthermore, limited production capacity for high-value products and competition from imports have also hindered the local market. Accordingly, the ministry is restructuring the sector to fill gaps, increase added value and ensure the sustainability of supply chains. In addition, they have investigated the status of small factories that rely on induction furnaces to produce rebar, with the aim of increasing their efficiency and sustainability.
Joint Steel Plate Manufacturing Venture Progressing
In associated news, China’s Baosteel is progressing with its SAR 15 billion (USD 4 billion) integrated steel plate manufacturing complex in the Kingdom. The project will have a production capacity of 2.5 million tonnes. Saudi Aramco, the Public Investment Fund (PIF) and Baosteel signed a shareholders’ agreement to establish the manufacturing complex in 2023. Accordingly, the joint venture was officially registered in Saudi Arabia in November 2024. Notably, Saudi Arabia’s operating costs for steel production are relatively low, which is the underlying rationale behind the investment. Talks with an original equipment manufacturer (OEM) are ongoing regarding the localisation of equipment, reducing manufacturing costs, and increasing distribution.
Setting Up Business In Saudi? Contact Soutien Group For Support!
Soutien Group is part of a network of consultants, partners and investors. Our clients are corporate, private and international with an interest in exploring new markets. We can offer expertise in Market Research and Assessment Saudi, Saudi Business Case, Saudi Business Model Development, Feasibility Study and Business Plan Saudi, Organizational and Operational Structuring Saudi, Saudi Sponsorship and Partnership, Company Formation Saudi among others.
Please click on the link to learn more about opportunities and possibilities in the Kingdom of Saudi Arabia as well as the initiatives of Soutien Group.
