Seah Gulf Special Steel, a joint venture between Saudi industrial investments company Dussur and Korean group SeAH Changwon Integrated Special Steel, said it has sealed an industrial land allocation agreement with King Salman Energy City (Spark) to set up its new steel pipe factory in Dammam at an investment of more than SR1 billion ($266.3 million).

As per the agreement, Spark will allocate SeAH Gulf Special Steel an industrial land area of 177,845 sq m to build its factory, which, once operational, will have a capacity of 20,000 tonnes per year.

And the importance of SeAH Gulf Special Steel factory lies in the opportunities of attracting global expertise and localizing the stainless-steel pipe industry, by serving the oil and gas sectors in addition to energy and water.

On choosing Spark for its project, the Dussur-Korean JV said it is one of the most developed industrial cities in the kingdom, as it provides integrated industrial services that include electricity and gas supplies, in addition to water and communication.

Also at the ceremony, SeAH Gulf Special Steel awarded a engineering, procurement, and construction contract (EPC) contract worth SR260 million to Sendan International Company, a leading Saudi-based construction group, for the steel factory.

A major player in Saudi industrial sector, Sendan has developed a strong position as a contractor in the oil, gas, petrochemical, power, water, and mining in the kingdom.

The entire project will be completed in 34 months and the commercial operation will begin by 2025.