Al Yamamah Steel to begin construction for SAR 293 mln wind power systems plant in March

Logo of Al Yamamah Steel Industries Co.

Al Yamamah Steel Industries Co.'s board of directors approved, on Feb. 8, to begin construction of Al Yamamah Wind Power Systems plant as of March 1, at the cost of SAR 293 million, according to a bourse filing today, Feb. 9, 2021.

The company will finance 25% of the project from its own resources, 25% from local banks and the remaining 50% from the industrial fund.

The project is expected to be finalized by the end of fourth quarter of 2022, while its financial impact will reflect in Q3 2023 financials.

Any development related to the financial impact will be disclosed in due course in line with construction completion and signing supply steel towers contracts.

The statement clarified that the plant's trial production is projected to start in Q1 2023 and will extend for three months, applicable for renewal.

The project has been approved to contribute to the local content in the execution of the wind power projects in line with the Kingdom's clean energy transformation plan through Vision 2030.

In 2018, Al Yamamah Steel's board approved the construction works for two new plants, namely the project to manufacture steel systems for solar energy production systems and the project to manufacture steel systems for wind energy production systems, according to data compiled by Argaam.