Finance

Saudi to offer steel projects worth $16bln

They aim to tackle supply gap.

Saudi Arabia has completed a study about the optimal options to address the supply shortage in the domestic steel market, the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef has said.

Options involve manufacturing 7 steel and iron products, potentially opening up investment opportunities worth 60 billion Saudi riyals ($16 billion), Khorayef told a steel conference in Riyadh on Wednesday.

He explained that the sector has faced real challenges in recent years, mainly the surplus production of rebar products compared to local demand, limited production capacity for high-value products, and competition from imported products.

“The ministry is taking steps to restructure the sector to fill gaps, increase added value, and ensure the sustainability of supply chains,” he said.

“We have completed a study about the status of small factories that rely on induction furnaces to produce rebar, with the aim of increasing their efficiency and sustainability,” he added.

The Minister urged companies in the sector to cooperate in implementing strategic recommendations to keep pace with the updates and developments taking place in the steel sector.

© ZAWYA 

GLOBAL BUSINESS AND FINANCE MAGAZINE

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