South Korea’s steel conglomerate SeAH Group has set up a joint venture with Saudi energy giant Aramco to produce special steel pipes, a report said.
The project will be established in King Salman Energy Park (SPARK), a new megaproject under construction between Dammam and Al-Ahsa in the Eastern Province.
SeAH Changwon Integrated Special Steel Corp, the group’s special steel maker, said the joint venture, SeAH Gulf Special Steel Industries (SGSI), will accelerate the expansion of the group in the Middle East, according to The Korea Economic Daily report.
In September last year, SeAH Changwon agreed on an investment of $230 million to jointly set up a seamless stainless steel pipe production plant with Aramco-owned Saudi Arabian Industrial Investments Company (Dussur), the Saudi Public Investment Fund and Saudi Basic Industries Corp.
They completed the establishment of the joint venture after reporting the integration to six authorities including those in South Korea, Saudi Arabia, the European Union and China, said the report.
Construction work on the factory, which will have an annual capacity of 17,000 tons, will commence in Q4 with commercial operations to begin in H1 of 2025.