Saudi oil firm Saudi Aramco is looking into the possibility of building a plant for the production of steel plates as part of its efforts to increase the local content in the company’s supply chain.
Steel plate production goes into the manufacturing of pipes, pressure vessels, marine vessels, offshore platforms, and infrastructure, among other applications.
Saudi Aramco has recently signed a memorandum of understanding (MoU) with Nippon Steel and Sumitomo Metal Corporation (NSSMC), Sumitomo Corporation, and Sumitomo Corporation Saudi Arabia to conduct a feasibility study for an integrated steel mill to produce steel plates in the Ras al-Khair area.
The MoU was signed by Abdulaziz A. Al Abdulkarim, Saudi Aramco vice president of Procurement and Supply Chain Management; Atsushi Iijima, management executive officer of NSSMC; Kazunari Sakata, corporate officer of Sumitomo Corporation; and Masashi Abe, managing director of Sumitomo Corporation Saudi Arabia.
“The presence of the new steel mill will reduce costs, delivery time, and offer better customer service to the local market,” said Al Sa’adi.
NSSMC, headquartered in Japan, is the world’s second largest steel producer by volume as of 2017 with more than 90,000 employees, and is involved in the production of steel and finished steel products used in all industries.
Sumitomo Corporation, also headquartered in Japan, is among the world’s oldest and largest integrated trading and investment enterprises, and has a global network consisting of 139 offices and approximately 800 consolidated subsidiaries and associated companies worldwide.
This project is in support of the iktva program, which is designed to increase the local content in Saudi Aramco’s supply chain.