SAFCO and HADEED have signed an agreement to construct a 50:50 owned facility in Jubail Industrial City for the production of flat steel products with an annual capacity of 1.7 million metric tons. In addition to this project,. The facility will utilize the quantity of gas allocated to SAFCO plant in Dammam, which will be closed down during the next two months to enforce the Royal Decree #258 dated 20 Dul Quaidah, 1427H. The Ministry of Petroleum and Mineral Resources has allocated additional quantities of gas for this project.

During the construction phase of the flat products facility, SAFCO has reached agreement with SABIC affiliate, the Saudi Methanol Company (AR-RAZI) to make use of the above referenced gas quantity to produce methanol for SAFCO for an interim period until the completion of the flat steel products project, scheduled for a period estimated at four years.

Mohamed Al-Mady, SABIC Vice-chairman and CEO and Chairman of SAFCO affirmed that such agreements will positively impact the results of the companies and help SAFCO maintain the level of profitability. HADEED will construct a rebar and wire rods production facility to add 500K metric tons annually They will contribute to promoting steel industry in the kingdom, where the new capacities amounting to 2.2 million metric tons annually represent an annual increase of 28% percent of the Kingdom’s steel production. This will meet some of the products which are imported and currently required for the construction and downstream industries now and in future.