Sabic finalizes feasibility studies for USD 4.2 billion steel plants

The Saudi Basic Industries Corporation (SABIC) has finalized feasibility studies for two steel plants it plans to build by 2018 with a total cost of USD 4.2 billion, according to industry reports.

The Saudi giant is expected to start the prequalification process for the construction tenders in the second quarter of 2014, reported MEED magazine.

The two plants, with annual production capacity of 2.5 million tons, will be operated by the Saudi Iron and Steel Company (Hadeed).

Sabic will build the first plant, which will have an annual capacity of 1.5 million tons, at Hadeed’s Jubail complex. The second plant will be based in Rabigh, aimed at providing raw materials for use in several downstream industries.

 Sabic said earlier it allocated a budget of USD 4.2 billion for construction of the plants, which will be operationalby 2018. Bids will be awarded by end of 2014 or early 2015, the company said.

MEED’s report added that Italy’s Danieli, Germany’s SMS and Austrian Siemens are among candidate contractors. Other firms from relevant sectors will be invited to bid.