Largest Steel Companies in Saudi Arabia
The current demand for steel in Saudi Arabia is around 10-12 million tons per year. The current capacity of Saudi steel companies is 8m tons per year. The demand for steel is to grow by 19.5% on the backdrop of large governmental project, infrastructure spending, transportation and most importantly housing projects. 70% of Saudi population does not own any house at all. The supply is supposed to grow by 9%.
Almost one third to one half of steel is imported. Saudi Arabia is attracting investments into the steel industry, which stood at $11.76bn in 2011. Large expansion of capacities are underway. The country is already home to the Gulf’s largest steel and petrochemicals industries. The kingdom is owns 49% of all steel factories in the GCC.
Top Steel Manufacturing Companies
- Saudi Iron and Steel Company (Hadeed)
A subsidiary of the Saudi Arabian Basic Industries Corporation is the largest steel producer in the MENA region. The current capacity is 6m tons and is planned to increase to 10 million tons by 2020.
- Al Rajhi Steel
Which currently represents about 20% of total Saudi production. The manufacturer announced to increase the capacity by 2.6 million tons and invest US$ 4bn at the King Abdullah Economic City.
- Al-lttefaq Steel Products Company (ISPC)
Al-lttefaq Steel Products Company (ISPC) is Saudi Arabia’s largest private steel producer with a 3 million tons steel rebar and wire rod production capacity. ISPC is a fully integrated steel producer having its own DRI plant, billet making and long product facilities in Dammam and Makkah. ISPC products meet national & international standards in quality.
- Solb Steel
Steel is considered as one of the major materials for Infrastructural development in any country. Work of creating this regional center shall be taken up stage-wise, against a total investment cost of approximately 10 Billion Saudi Riyals. Solb Steel Company shall produce 1 million tons of liquid steel.
- Absal Steel
Absal steel produces 300,000 tons. The producer is expanding the copacity and in three years will double the capacity to 400,000 tons.
Plans to begin production at a 600,000-tonne plant in Jubail, which is to produce steel pipes