By Shane McGinley
Industrial giant inks agreement with Italian firm Danieli for construction of Jubail facility.
Saudi Basic Industries Corporation (SABIC)
has signed an agreement for the construction of a steel plant, the petrochemical company said on Monday.
's manufacturing affiliate, Saudi Iron and Steel Company (Hadeed), reported it had signed a deal with Italian foundry equipment maker Danieli for the construction of a steel plant and a production line in Jubail, Saudi Arabia.
The new plant, which is scheduled to start-up in the second half of 2012, will have an annual production capacity of one million tons of steel billets. It will increase the total production capacity of Hadeed to six million tons.
, which controls 100 percent of Hadeed, is the world’s fifth largest petrochemicals company and is 70 percent owned by the Saudi Arabian government.
reported that profits for the third quarter of this year dropped 50 percent to $960 million.
Already this year, Italian foundry equipment maker Danieli has been awarded a $213.3 million contract to build a steel plant in Saudi Arabia for Al Rajhi Steel and a $474 million contract by Emirates Steel Industries.