26/08/2013
Seeking to raise production capacity to meet domestic demand
«SABIC» begins production at two manufacturers of iron products in Al Jubail
SABIC has begun running a new factory for strains depending on electric arc furnace and wiring factory in Jubail.
The Increased in production capacity of billets to 4 million metric tons per year and of wire 1.4 million metric tons per year, which will allow SABIC to cover the demand for wires in Saudi Arabia for an estimated 1.35 million metric tons in 2013, where light sections and Iron cover 2.6 million metric tons a year of production capacity for long products.
In addition to SABIC, the steel and solid company began running million metric tons annually in the factories of vessels based on electric arc furnace in the past 12 months. According to the Arab Federation of iron and steel, the production of long products rolling mill in Saudi Arabia have exceeded production capacity till 2-3 million metric tons annually, necessitating imports of semi-finished products from Turkey and the Commonwealth of independent States, SABIC produces 2.2 million metric tons a year of hot-plate rolling mill unit with cold rolling and galvanizing unit nearby. SABIC's plans to build a heavy steel plates in Jubail, in addition to a cold rolling and galvanizing unit in the new location of the economic city at the end of the year 2018, as the company shipped the highest ever taken 5.6 million metric tons of steel products in 2012 and this value higher by 3.3 of the quantity sold in 2011 with 5.42 million metric tons.
Production capacity will reach to 8 million tons per year by 2018 after securing natural gas supplies from the State and will allow the company to produce steel projects at a cost of 16 billion riyals with a project to produce a heavy portion of the production capacity of 1.5 million tons in Jubail, in addition to rolling and galvanizing unit cold surfaces with production capacity of 1 million tons every year in King Abdullah economic city in the Western region.
According to the Arabic Organization for industrial development, the Kingdom ranked the second among Arab countries in the production of iron and steel after Egypt with about 36 percent of the total Arab production of iron and steel, and it is expected to see great industrial development after the adoption of the Saudi Arabia national industry development strategy, which aims to promote the industrial sector through an ambitious vision for 2020, aimed at strengthening the competitiveness and diversification of production and exports, beside to attract national and foreign investments in order to increase the added value of target industries.
Also they predicted to achieve the completion strategy by the end of 2020 that assuming the Kingdom ranked best among the 30 industrialized countries.
