SeAH GSI, a joint venture (JV) between the Saudi Arabian Industrial Investments Company (Dussur) and the Korean steel manufacturer (SeAH CS), has broken ground in Saudi Arabia on a first-of-its-kind stainless steel seamless pipes and tubes production facility.
The new plant, which is being built at a total investment of $240 million, will be developed on a 178,000m2 area within the King Salman Energy Park (SPARK) and is slated to begin operations in 2025.
The ground-breaking ceremony, which was attended by Park Joon-yong, the South Korean Ambassador to Saudi Arabia, and Engineer Saif Al Qahtani, President and CEO of SPARK, along with top executives from Saudi Aramco, Dussur, SeAH Holding and SPARK, follows the signing of a deal between SPARK and SeAH GSI in September 2022.
The new plant will be developed on a 178,000m2 area within the King Salman Energy Park
The new facility will boost the manufacturing of energy-related products in the Kingdom, thus reinforcing localization efforts in line with Saudi Aramco’s In Kingdom Total Value Add program and the National Industrial Strategy, which is part of Vision 2030, the statement explained. Once completed, the facility will have an annual operating capacity of 20,000 tonnes of seamless pipes and tubes.
The facility will have an annual operating capacity of 20,000 tonnes of seamless pipes and tubes
Speaking at the ground-breaking ceremony, Al Qahtani explained: “At SPARK, we aim to facilitate a world-class ecosystem that enables growth and encourages innovation for local and international investors. I am confident that the resources provided at the energy park will allow SeAH GSI to thrive and succeed as it enters a new chapter in its expansion journey. As a national megaproject, we are committed to localizing the energy supply chain to drive a diverse industrial economy, catalyzing the National Industrial Strategy, in line with Vision 2030.”
SeAH’s GSI CEO Young Soon Kim commented that with this new facility, the Korean group endeavors to become the pioneers of specialty steel pipe and tube manufacturing in Saudi Arabia. “Our plan is to produce and supply 20,000 tonnes of high-value-added stainless seamless pipes and tubes from this very facility that we are building here today. We are very proud of our successful beginning of SeAH GSI, and hope that we could be the perfect example of a successful JV partnership, which could remain as a major footprint in KSA’s history of the manufacturing sector for decades to come.”
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