South Korean steel giant, SeAH Group, has set up a joint venture (JV) with Saudi energy giant Aramco, to produce special steel pipes.
According to a report in The Korea Economic Report, the JV will accelerate the expansion of the group in the Middle East. SeAH Changwon Integrated Special Steel Corp, the group’s special steel maker, will be involved in the project, which will be established in King Salman Energy Park (SPARK), the under-construction megaproject located between Damman and Al-Ahsa in the Kingdom’s Eastern Province.
In October 2021, Baker Hughes began the construction of its OFS regional hub at SPARK.
It added that the factory will have an annual capacity of 17,000 tons. Construction work is scheduled to commence in Q4 of this year, with the start of commercial operations targeted for the first half of 2025.
The announcement follows the news in September last year, which saw SeAH Changwon agree on investment of USD 230M to jointly set up a seamless stainless steel pipe production plant with the Aramco-owned Saudi Arabian Industrial Investments Company (Dussur), the Saudi Arabian Public Investment Fund and Saudi Basic Industries Corp.
The report added that they completed the JV establishment after reporting the integration to six authorities, including those in South Korea, Saudi Arabia, the European Union, and China.
In January 2022, Spark and Abdullah M Bin Saedan and Sons Real Estate Company inked a USD 93.2M deal to develop an eco-friendly residential complex.