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Dubai Investments Industries to Invest in South Steel in Saudi Arabia
09/17/2008 - Dubai Investments Industries has acquired a 10% stake in South Steel Co., currently under construction in Saudi Arabia with equipment from Concast and SMS Meer.
Dubai Investments Industries (DII), a wholly owned subsidiary of Dubai Investments PJSC, has acquired a 10% stake in South Steel Co., Saudi Arabia.
Currently under construction, the new South Steel Co. is scheduled to commence commercial operations from December 2010, with an initial capacity of one million tonnes per annum, making it one of the largest steel plants in the Gulf region.
The complete minimill, which is being supplied by Concast and SMS Meer, will comprise an AC-EAF based meltshop capable of operating with a 100% scrap charge, ladle furnace, five-strand continuous billet caster, and rebar rolling mill. Promoted by Pan Kingdom Investments, the USD 350-million plant will produce top-quality steel billets and reinforcement bars in accordance with international standards.
"We are delighted to have acquired a stake in South Steel, which is poised to become a leading player in the regional steel market,” said Shukri Al Mehairi, General Manager of Dubai Investments Industries, commenting on the acquisition. “DII has been actively looking to expand its regional footprint and broaden the scope of its investment activities, and this acquisition provides us with an opportunity to promote our strategic interests and gain significant traction within the rapidly growing Saudi market.”
“Steel is among the fastest growing industries today, and with construction activities proceeding apace across the Middle East and with the regional steel industry tipped to sustain its growth momentum through the next decade, demand for steel is expected to rise even further,” Al Mehairi added. “As a high-capacity plant incorporating state-of-the-art technology features, South Steel Company will be uniquely positioned to cater to this huge demand, particularly in KSA [Kingdom of Saudi Arabia] and Gulf region, where the frenetic pace of construction has dramatically shot up demand for quality steel.”
Steel billets produced at South Steel Co. are expected to be entirely consumed within the KSA and Gulf region. Fifteen percent of the total output of reinforcement bars is to be exported to Yemen and Sudan, with the balance consumed domestically. The plant is expected to achieve 100% capacity utilization within the fifth year of operation.
Dubai Investments Industries is the industry arm of Dubai Investments. The company is committed to boosting the industrial development in local and regional markets, and targets both new and established industries. DII's portfolio of subsidiaries includes Globalpharma, Emirates Building Systems, Marmum Dairy Farm, Edible Oil Company, Emirates Extruded Polystyrene, United Sales Partners, Dubai Cranes & Technical Services, Gaussin Middle East and Techsource.
