AL RAJHI Steel Industries is establishing what is expected to be the largest steel factory in the Middle East under an ambitious expansion plan that will involve a total investment of SR4 billion ($1.06 billion).

The investment will see Al Rajhi Steel Industries mark key milestones in steel production and reach new heights in self-sufficiency.
In line with this plan, the company, part of Mohammed Abdul Aziz Al-Rajhi and Sons, will soon set up a SR1 billion ($267 million) steel rebar factory in addition to expanding current factories and establishing new ones, according to Eng Abdulaziz bin Saleh Al Aboudi, CEO.
Al Rajhi Steel Industries has recently appointed Italy’s Danieli Company, one of the world’s largest suppliers of plants and equipment to the metals industry, to equip the factory in Jeddah. Danieli is a leader in minimills, in long product casting and rolling plants, and is among the front runners in the flat product and iron ore sectors.
The facility will have an estimated production capacity of 1 million tonnes of rebar in various diameters ranging from 6 mm to 40 mm, he says.
“The project, expected to be completed by the end of November next year, will help increase the company’s market share from 17 per cent to almost 25 per cent.
“The factory will use the most advanced techniques in the field, which will enable us to produce all required sizes, as well as reduce production costs while maintaining the highest international standards,” he adds.
Al Aboudi says Al Rajhi Steel expects to complete the other projects by early 2012.
He confirmed the strong financial standing of Al Rajhi Steel and indicated that the company’s performance last year was one of the best, despite the global financial crisis.
Al Rajhi Steel comprises Al Assemah Steel Products Factory and Al Rajhi Steel Industries Factory in Riyadh, and Al Assemah Steel Billets Production in Jeddah.
Rajhi Steel Industries caters to a substantial volume of the Saudi market needs in both commercial and rebar steel, besides covering the international markets through exports to GCC and other neighbouring countries, a company spokesman says.
According to him, the company is striving to increase the production volume of commercial and rebar steel to meet the shortages in the local markets.
Al Assemah Steel Products was established in 1996 in Riyadh on a total area of 20,000 sq m. The factory produces several kinds and sizes of steel bars from 8 to 40 mm conforming to Saudi and international standard specifications GR60, A615, ASTM.
“What sets us apart is that we produce material using the natural air cooling technique, making positive changes in the microstructure of the steel and thereby increasing its hardness and resistance and minimising husk thickness,” the spokesman says.
Al Rajhi Steel Industries factory was established in Riyadh city in 1984, occupying a total land area of 200,000 sq m. The factory produces various kinds of tubes, pipes, cold and black steel sheets, normal and insulated corrugated sheets besides numerous galvanised products.