JEDDAH, 4 May 2005 — SABIC Metals has signed a contract with a consortium that include the Korean POSCO Engineering & Construction Co. Ltd. and Daewoo International for designing, manufacturing, supplying and installing a flat-steel painting facility within the company’s Hadeed complex in Jubail Industrial City. The facility will have an annual production capacity of 120K MT to complement the existing flat-steel production lines and the ongoing expansion projects. The new production line is expected to go on stream in November 2006.
“This project is being implemented as part of SABIC’s expansion plans to strengthen its competitive capabilities in the global marketplace and enhance its leading position worldwide,” said SABIC Vice President Muhammad Al-Jabr. “It is worthwhile saying that the speed of this new production facility is 120 meters of painted flat-steel products per minute. It will use the latest state-of-the-art technologies for polyester, fluorocarbon and polysystol on galvanized steel and aluminum and zinc coated steel.”
Daewoo International Managing Director Tai Tong Lee said: “We have had strong commercial ties with SABIC over the years in exporting SABIC Hadeed hot and cold rolled flat-steel and galvanized products to the amount of $50 million annually. These products have been transported to various countries worldwide through Daewoo International Office in Riyadh. The construction of this new facility will undoubtedly boost SABIC Hadeed’s economic growth.”
The facility is equipped with hot and decorative transparent packing facilities. These products are primarily used in household ceilings and appliances.
In 2004, SABIC Hadeed concluded contracts for the construction of a new plant for the production of 500 MT annual capacity of long steel products including rebar and wire coils. Also, the company entered into other agreements to implement expansion of the hot rolled facility at the flat-steel plant to double the production capacity from one million to two million tons annually. SABIC Hadeed expects to complete its expansion projects by the end of 2006.
Meanwhile, SABIC completed the last global phase in rolling out the FANAR project. The project’s objective is to strengthen corporate relations within the business and enhance competitive capabilities.
Mohamed Al-Mady, SABIC vice chairman and CEO said: “FANAR project has achieved great advantages and good results. We look forward to earning further benefits now that FANAR is fully implemented. FANAR will help us administer various corporate business operations locally and abroad within an integrated system. The overall objective is to accelerate communication, flows of information and timely decision-making in order to strengthen the integral role played at the corporate level. This will further bolster our interface and relations with our customers, vendors and help reduce costs.”
The FANAR project was first implemented in October 2000 in SABIC Americas and then at SABIC’s affiliate, the Eastern Petrochemical Co. (SHARQ) in Jubail. It was later introduced at SABIC headquarters in Riyadh and SABIC Asia Pacific. It was later successively implemented in all remaining SABIC affiliates.