ArcelorMittal plant begins production in Jubail

ArcelorMittal iron and Steel Company in the Kingdom has started commercial production at its plant in Jubail 2 Industrial Zone.
The mill in Jubail Industrial City will have a capacity of 600,000 tons a year with an investment in excess of a billion dollars. About two-thirds of its capacity will be used for tubular products and the remainder for pipelines
Company CEO Timothy Erway said: “The plant’s commercial production has successfully begun; we thank the Royal Commission and all the partners."
He explained that the objectives of the company are to contribute in localizing the industrial sector in Saudi Arabia, transfer the technology and provide job opportunities to Saudis.
The project aims to ensure the needs of Saudi Arabia and the Gulf countries with oil and gas pipes of various types and sizes.
He said: “The company plans for large investments in Saudi Arabia due to the extensive facilities provided by the Royal Commission in Jubail." He mentioned that the plant is the first of its kind in the Gulf region and the first plant to start production in Jubail 2.
"The project represents a connection with the mother company and its subsidiaries around the world. It decided to divert its investments toward the Saudi, Gulf and the Middle East markets to produce iron and steel and its derivatives to meet the growing demand in the region,” he said.
“The production targets new projects, especially in Jubail and meet the needs of the Kingdom and Gulf countries of oil and gas pipes in multiple types and sizes. The facility will employ more than 600 workers when fully operational."
ArcelorMittal Jubail plant will be the largest seamless tubular products in the Middle East.
ArcelorMittal Jubail is a joint venture between the world's largest steel company, ArcelorMittal, and Al-Tanmiah Company for Industrial and Commercial Investment.
The majority shareholder in Al-Tanmiah Company is Bin Jarallah Group based in Riyadh. Total project investment is in excess of SR3 billion.
The Royal Commission of Jubail and Yanbu has started the modern industrial city located west of the local industrial city. The location was chosen as it is near the feedstock resources and the facilities of the infrastructure in industrial Jubail.
The construction work for Jubail Industrial City 2 is in full swing. It is expected to attract over SR200 billion in investment mainly from international sources.
The development of the second Industrial City is done in four phases, which are to be undertaken during the next 22 years.
The Phase I was completed in 2007, Phase II was from 2008 to 2012, Phase III from 2013 to 2018, and Phase IV from 2019 to 2022.
As with the original Jubail development, the Royal Commission for Jubail and Yanbu is undertaking the project under the supervision of Bechtel, which has played a key role in the development of Jubail during the last 30 years.
The total four phases of development for Jubail Industrial City 2 is expected to cost about SR14 billion — Phase I SR4.7 to SR 5 billion, Phase II SR2.5 to SR3 billion, Phase III SR1.8 to SR2 billion and Phase IV SR2.5 to SR3 billion.