King Abdullah Economic City in Rabigh will witness the launch of an SR15bn ($4bn) Rajhi steel complex on Tuesday (24 May 2011).
Amr Al-Dabbagh, governor of Saudi Arabian General Investment Authority (SAGIA), and Abdul Aziz Al-Aboudi, chairman of Al-Rajhi Steel Company, will take part in the ceremony to hand over land for the project.
The new Rajhi Steel complex will cover 4Mm2 in the industrial area at KAEC and will contain a number of plants including a direct reduction iron plant with a capacity of 1.8Mt/y. It will create 1500 direct jobs and 3000 indirect jobs.
The complex will include a hot briquetted iron plant with a capacity of 650kt/y and a melt shop with a capacity of 2Mt/y. The firm will later offer 50% of the new project to the public through an initial public offering.
The complex will supply a variety of stainless steel products required for many industries including car industry, gas and steam powered turbines and industrial bearings.
The Ministry of Petroleum and Mineral Resources has signed an agreement to supply 70m3 a day of dry gas to Rajhi Steel.