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.
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 a The Korea Economic Daily report.
The project will be established in King Salman Energy Park (SPARK), a new megaproject under construction and located between Damman and Al-Ahsa in Saudi Arabia’s Eastern Province,
In September of 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 Arabian Public Investment Fund and Saudi Basic Industries Corp.
They completed the JV establishment after reporting the integration to six authorities including those in South Korea, Saudi Arabia, the European Union and China, said the report.
The factory will have an annual capacity of 17,000 tons. Construction work on the factory will commence in Q4 of this year with commercial operations set to begin in first half of 2025.