Four companies from four countries — Saudi Arabia, Germany, Czech and India — have formed an alliance to build a large plant for manufacturing seamless pipes in Ras Alkhair.
In the first stage of the project, however, the production capacity is expected to reach 600,000 tons of steel in which seamless pipes, iron, and iron alloy will be made
The plant, which is believed to be at the final stage of signing at contract, which is set for the beginning of 2015, will help manufacture industrial and construction equipment. The plant is claimed to be the first one in the Middle East to produce seamless pipes with diameters of 19 mm to 137 mm 4/3 to 5.50 inches.
Salama Al-Enizi, chairman of Gulf Tubing Company GTC and the owner and developer of the project, told a press conference in Alkhobar on Monday that the plant will generate 1,200 jobs, including 800 direct jobs for Saudi youth and 400 indirect jobs at the plant, which are expected to be available by summer 2017.
The plant is estimated to cost $1 billion (SR3.75 billion). The project will be financially managed by Alinma Investment.
Al-Enizi highlighted the training program plans that will extend for two years in different fields, including the plant's operation and maintenance, and metals and equipment engineering in both Germany and Czech.
He added that cooperation deals have been reached in advance with Saudi Aramco and Saudi Basic Industries Corporation (SABIC) as well as the Royal Commission in Jubail and Yanbu to supply these companies certain products produced in the plant.
He also pointed out that the plant will manufacture drill pipes, oil and gas well covers, pipeline steam boilers, heat exchangers, petroleum furnaces, construction pipelines, mechanical equipment and small pipelines.