MEED reported that the local National Steel Company plans to build 1.2 million tonnes per year steel billet plant in Dammam to make up for the shortfall in billets for its rolling mills.
The source said that the budget for the plant is still not set, but the facility will be constructed at Dammam Industrial City. A similar facility with a slightly smaller capacity is being constructed by Saudi Iron & Steel Company at Jubail for USD 630 million.
At the moment Nasco is producing almost 3 million tonnes per year of products from its 2 rolling mills, but only 1 million tonnes per year of billets. The company wants to try and plug that gap and this plant is the answer to that.
The source added that finance is currently being sought to fund the project and that preliminary discussions have taken place regarding engineering, procurement and construction contracts.
Nasco, a wholly owned subsidiary of the Saudi Arabia's Al Tuwairqi Holding, currently exports billets into the kingdom from its UK based sister company Thamesmead. The company has a number of projects that are either currently on hold or have been cancelled such as USD 450 million rail mill that was due to be built in Dammam.
The source said that the billet plant is the only project active at the moment. I have heard talk of a phase II that would involve the construction of a seamless pipe mill or something similar, but that will be at least 2 to 3 years away.