Qatar Steel’s board of directors has approved increasing the company’s stake in Saudi Arabia’s South Steel, from 20.9% to 29.74%, at SR90M (US$24M).
South Steel, located in Saudi’s Jazan Economic Area, consists of an integrated steel melting complex, with a capacity of 1Mt/y of steel billets and 500kt/y of steel reinforcement bars.
South Steel is currently meeting the requirements of local Saudi markets, particularly the southern areas of the kingdom. The surplus production is marketed to other areas inside Saudi Arabia and the neighbouring markets of Yemen and Africa.
Qatar Steel is providing technical support to South Steel in areas such as operations, production, administration, marketing and training.
Qatar Steel is a leading industrial company producing iron and steel in the Gulf Co-operation Council region. The company enjoys an outstanding reputation in local and world markets, due to its high quality products of iron and steel, which entirely conform to world standards and specifications, a statement said. Its value-added advantage is being close to the GCC markets, enabling the company to meet most of its requirements, in addition, to those of the local market in Qatar.
Qatar Steel director and general manager Ali Bin Hasan al-Muraikhi said the decision to increase the company’s stake in South Steel comes within the framework of supporting its existing strategic partnership, boosting its solid co-operation with South Steel and to further enhance the ties that exist between Qatar and Saudi Arabia.
“Qatar Steel has an ambitious strategy aiming at increasing its investments and expansions in iron and steel industry, to serve both the local and the Gulf markets. Qatar Steel now owns a steel plant in Jebal Ali in the UAE, producing reinforcing bars and wire rod. It has also some investments in Bahrain and looks forward to having more investments in other countries in the future,” al-Muraikhi added.