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South Steel Factory
Steel, is one of the vital building element of the modern construction world. Steel industry is an intensely competitive global industry and is experiencing a steady growth. Identifying the importance of steel and due to increasing constructions projects in Saudi, the Pan-Kingdom Investment Company conducted a research on importance and demand for steel in Saudi. After analyzing the situation and research outcome, they recognized that there is an increasing demand for steel products especially in southern part of Saudi and thus proposed a plan to launch a Steel manufacturing plant that will include all industrial stages from primary to transformational.

South Steel Factory SOLB, was establised in industrial estate of Jizan and was inaugurated by King of Saudi Arabia Abdullah Bin Abdel Aziz on 4th November 2006.  With an investment value of Ten Billion Saudi Riyals, the execution of this steel project was planned in stages and soon after the inauguration the first stage was started. Al-Jedaie group has expanded their realm to steel manufacturing and owns a 10 percent share of South Steel Factory.

With an area of (5,000,000) five million sq. meters, Pan-Kingdom Company started the project’s initial stage: production of steel pellets and bars.  In accordance with Saudi and International standards, the South Steel factory target production of steel pellets and steel bars was (1,000,000) one million tons per annum. Studies and designs were completed according to the standards and predicted the productivity to increase to (2,000,000) two million tons per annum. 

Advantages of South Steel Factory project

On the basis of field study and economic feasibility studies report, revealed the advantages as:
The only Steel Factory in the Southern region of Saudi.
Great Constructional boom in the same region.
Located near to steel consuming countries (Yemen and the African states).
Jizan area facing the Red sea thus will facilitate importation of raw materials and opportunity of exporting the excess to neighboring states.
Pan-Kingdom Company is currently negotiating with international steel producers to participate as strategic partners for South Steel Factory project. As per the plan, the products of this project will be marketed mainly in the Southern region of Saudi Arabia, Yemen, Djibouti, Sudan and Ethiopia.

Consultancy companies for various stages of South Steel Factory project were:
Financial and Economic studies - KPMG Compaby Intenational.
Technical designs – Corus Consulting Company, Britain.
Geological studies – Arab Company for Arab laboratories and soil.
Environmental studies – Al Raei Center for Training and Environmental Consultancy.
Legal Consultancy – Dr. Hassan Al Molla Office Lawyers and Legal Advisors.
Executing company - An agreement has been made with European company  to supply steel production machinery and equipments for the South Steel Factory project.
Pan Kingdom Invest. Co. has placed an order with Concast and SMS Meer, both companies belonging to the German SMS group, for the planning, engineering and supply of plant and equipment for a minimill in South Steel Factory.  By pocketing many project and with 9000 employees worldwide has generated a turnover of 2.8 Billion Euros.
Saudi Arabia – Riyadh P.O. Box 7820 Riyadh 4116-12333.
Phone: +966- 1- 2019999
Fax: +966-1- 2017777
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Saudi Arabia – Riyadh – King Fahd road.P.O. Box 310 Riyadh 11411.
Phone: +966-1-4652000