By increasing steel production, the country plans to meet a significant increase in domestic demand
Saudi Arabia intends to invest about $12 billion in steel projects to increase steel production and meet the significant growth in domestic demand for the relevant products. This is reported by HellenicShippingNews.
According to Khalid Al-Mudaifer, Deputy Minister of Industry and Mineral Resources of Saudi Arabia, the demand for steel, which is the basis of the construction industry, is already high due to large-scale projects being implemented as part of the Gulf Kingdom’s economic diversification program until 2030.
Mudaifer added that the construction mega-projects launched in Saudi Arabia over the past few years are worth more than 5 trillion riyals ($1.33 trillion), and most of these projects are currently under development.
«Implementation of these projects has significantly increased and will increase the demand for steel. We expect demand to grow at least 2.5 times in the next few years,» he added.
In May 2023, the largest steel producer in China, Baoshan Iron & Steel, signed an agreement with the oil and gas giant Saudi Aramco and the Public Investment Fund of Saudi Arabia (PIF) on the creation of creation of a joint steel enterprises. The plant is planned to be commissioned by the end of 2026.
As GMK Center reported, last September Saudi Arabia announced its intention to implement three steel production projects worth $9.32 billion. The country’s government held negotiations with local and international investors. It was planned that the total production capacity of the new steel enterprises would be about 6.2 million tons.