South Korea Shiyachang former Special Steel Joint Venture sets up the first stainless Steel Seamless Tube Factory in Saudi Arabia

Recently, South Korea's Shiyachang Special Steel Co., Ltd. has partnered with Saudi Aramco's major shareholder, Saudi Industrial Investment Company (Dussur), to establish the first stainless steel seamless pipe factory in Saudi Arabia. The total investment of the stainless steel seamless pipe factory project is up to 230 million US dollars, of which Shiya Changyuan Special Steel and Saudi Industrial Investment Company jointly contributed 120 million US dollars at the ratio of 6:4, and the remaining 110 million US dollars will be supported by the Saudi industrial training fund "SDF (Saudi Industrial Development Fund)" and local financial institutions.

The new seamless pipe factory is located in Salman King Energy Park (King Salman Energy Park,SPARK) in eastern Saudi Arabia. It covers an area of about 50, 000 square meters and has an annual design capacity of 17000 tons. It mainly produces stainless steel seamless tubes. The project is scheduled to start construction in early 2022 and aims to put into commercial production by 2025. Seamless stainless steel pipe has no weld, so it has better pressure resistance and stronger corrosion resistance than ordinary steel pipe. It is mainly used in energy, oil refining and chemical industries.

Shiya Changyuan Special Steel said that after the promulgation of the "Vision 2030" policy, the Saudi government is promoting the world's largest smart city project Neom and hydrogen business, so Shiya Changyuan Special Steel will take advantage of the geographical advantages of the joint venture seamless pipe plant to actively undertake local project orders. In the medium to long term, the joint venture seamless pipe factory is expected to play the role of a major seamless pipe supplier in the Middle East. Shiya Changyuan Special Steel expects this cooperation to become a good cornerstone for Shiya Group to open up the Middle East market.

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