Sabic Metals has signed four agreements with companies to build new production plants for flat steel at its Saudi Iron and Steel Company, (Hadeed) affiliate in Al Jubail, Saudi Arabia.

Sabic vice chairman and CEO Mohamed Al Mady said the agreements and expansions represented part of the conglomerate’s strategic plan to meet the market’s growing demands and improve its position worldwide.
“Since Sabic Metals’ formation, it has continuously endeavored to increase its plant capacity and diversify its range of products,” he said, adding, “In 2003 its capacity reached 3.9 metric tonnes of long and flat steel products. Upon completion of this new expansion program by 2006, annual production will rise to 5.5 million tonnes of long and flat steel products.”
The first of the agreements was signed with Saudi Voest-Alpina. The second was with a consortium with Austrian Voest-Alpina and Matrix Technologies. These two are for construction of a facility to expand production of direct reduced steel by 1.7 million metric tones annually. The third agreement was with a consortium with Saudi Voest-Alpina and Saudi Siemens and the fourth was with a consortium with Austrian Voest-Alpina and Siemens Germany. The last two are for the construction of a steel production plant with electric furnace with an annual production capacity of 1.4 metric tonnes. There will also be a continuous casting machinery steel production plant. This will produce 1.2 million metric tonnes of steel slabs. Last May, Sabic announced a project for the construction of a new rolling mill, which will produce 500,000 tonnes of reinforced steel bars and wire.
Danieli Mordgardshammar Company and Dywidag Saudi Arabia Co Ltd will construct the facility. The completion of construction is anticipated early in 2006.
  Earlier, Sabic announced it had awarded a large-scale contract for the expansion of its hot-rolling steel mill to Voest Alpine Industrieanlagenbau. The expansion will double flat steel production capacity from one million to two million tones per year. Completion is scheduled for the start of 2006. The turnkey contract includes slab yard and coil yard expansion; a second reheating furnace; a sixth finishing stand; a second downcoiler; and skin pass mill automation system.
Sabic Metals’ 2003 production of 3.9 million tonnes represents 27 per cent of the total Arab countries’ production, amounting to 14.5 million tonnes that year.
Hadeed won an order to provide rebars for the Dubai International Airport expansion project. Hadeed’s distributor in the UAE, Cicon, received the order signed by the contractor, AlNaboodh, for the supply of Sabic steel for the project’s earthwork and piling phase, which will consume 87,000 tonnes of rebar.
The order was described as the biggest in the UAE. The entire project will consume some 140,000 tonnes of rebar, the largest requirement for a UAE project.  It is also the first time that Hadeed will be producing rebars of 18.25 m length.
Sabic Metals was founded in 1983 with an initial annual production capacity of 800,000 tonnes.
The company received the ISO 9002 certification in 1994. Hadeed products reach more than 34 countries including the GCC and other Arab states.