Solb Steel Company

Steel is considered as one of the major materials for Infrastructural development in any country. Considering the currently ongoing construction boom in the Kingdom of Saudi Arabia in general, and in the southern region in particular, the Pan-Kingdom Investment Company have taken a decision to establish a regional center for production of steel & allied products in the up-coming Jazan Economic City in southern province of Jazan. Work of creating this regional center shall be taken up stage-wise, against a total investment cost of approximately 10 Billion Saudi Riyals. Construction for first stage started in earnest during 2009, and Pan-Kingdom Company shall, by end of the financial year 2011, commission the first stage and commence supply of Steel Billets and constructional quality re-bars.

As part of the economic and social development program for the country, the Kingdom of Saudi Arabia has founded so-called "Economic Cities" which shall assist the further regional and industrial diversification of the Kingdom. Jazan Economic City (JEC) will offer much greater employment opportunities for the southwest region of Saudi Arabia through the establishment of a petrochemical and metallurgical complex.

Saudi Industrial Development Fund (SIDF) being he major source of funding, the balance has been raised from commercial loans and share capital. Major share holders are PKI, with Qatar Steel also having a substantial holding.

The 1st Phase - Billet & Re-bar production via the EAF/CC/RM route

The 1st phase is being of the project is being constructed in an area of approximately 1 sq km, with-in the Jazan Economic City, with a planned investment of SR 1.35 Billion. Based on the field study and economic feasibility studies it was revealed that the project's site has the following advantages:

1. No other steel factory in the Southern Region

2. There is a big constructional boom in the southern region

3. The project is geographically located near neighboring and consuming countries like Yemen and countries of North Africa

4. Being a shore based location (Jazan Economic City is on the Red Sea coast), import of raw material and export of finished goods is facilitated.

Solb Steel Company shall produce steel through the EAF-CC route, and therefore, depend on import of raw materials like DRI/ HBI & steel scrap.

Solb Steel Company shall produce 1 million tons of liquid steel, 1 million tons of billets of sizes 130 x 130 mm sq and 150 X 150 mm sq, at casting speeds of 4.5 and 3.8 m/min respectively, and 0.5 million tons of construction quality straight re-bars of diameter 8 mm to 32 mm corresponding to BS 4449 grades A, B & C, ASTM 706 A to M, ASTM A 615 M and EN262/2000. The remaining 0.5 million tons of billets shall be sold as semis.

The main production units are:

1. 150 t Electric Arc Furnace (EAF) of CONCAST AG design

2. 5-Strand Billet caster of CONCAST AG design

3. A 22-stand Rolling Mill of SMS MEER design

The oxygen plant is being built by Abdullah Hashim Group, Jeddah on BOT basis, DRI/ HBI shall be imported, power supply from Shaqaiq Power plant via a 20 km Overhead transmission line being constructed by NCC, 380/132 kV substation being constructed by Al Fanar, and 132/33 kV sub-station being constructed by ABB water supply from Shaqaiq De-salination Plant

Project Consultants/ Contractors

The 1st phase is being of the project is being constructed in an area of approximately 1 sq km, with-in the Jazan Economic City, with a planned investment of SR 1.35 Billion. Based on the field study and economic feasibility studies it was revealed that the project's site has the following advantages:

1. Financial and economic studies by KPMG International.

2. Feasibility study by Mclellan, UK.

3. Project Management by VWN Steel Solutions from Swaziland.

4. Melt shop Equipments from SMS Cincast.

5. Rolling Mill from SMS Meer.

6. STX Heavy Industries, Korea & their sub contractors.

7. Abdullah Hashim Group for Oxygen Plant.

8. Nation Construction Company (NCC) for Over Head Transmission Line (OHTL).

9. Al Fanar for 380/ 132 kV sub-station

10. ABB for the 132/33 kV sub-station.

11. SWCC/ JEC for water pipeline.

Future Expansion

Solb Steel Company proposes the following 5-year plan for expansion

1. 2012 - A new Rolling Mill to roll 0.5 mta of re-bars, a Cut-to-length & Bending Process Unit to process 100,000 tpa, & an Epoxy coating unit to process 60,000 tpa. at a total investment of SR 450 million

2. 2014 - A new Melt shop of 1 million tpa to produce Billets, Re-bars & Rods at a total investment of SR 1,600 million

3. 2015 – A Pelletizing plant to produce 6 mta of green pellets & an Iron Ore Hub to handle 12 million tpa to produce Billets, Re-bars & Rods at a total investment of SR 2,000 million

4. Beyond 2015 – A new Melt shop & DRI Plant, to produce 1 million tpa of Slabs & Blooms, and to produce 2.6 mta of DRI a total investment of SR 4,000 million