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International firms to build US$1 billion Saudi Arabian manufacturing plant

600,000 tonnes of steel is expected to be produced in the first phase of the project. (Image source: Sarchi/Flickr)

Four companies from Saudi Arabia, Germany, Czech Republic and India have formed an alliance to build a large plant worth US$1bn that will manufacture seamless pipes in Ras Al-khair on Saudi Arabias east coast

Saudi Arabia's Gulf Tubing Company (GTC), India's Larsen & Toubro, German pipemaking company SMS Meer and a Czech firm will partner for this project, stated reports.

The production capacity of the plant is expected to reach 600,000 mt of steel in the first phase, stated project officials. Set to begin in 2015, the plant will manufacture seamless pipes, iron, and iron alloy.

According to reports, the seamless pipes that are be produced in this plant will range from 19 mm to 137 mm in diametre. Cooperation deals have been finalised with Saudi Aramco and Saudi Basic Industries Corporation (SABIC) as well as the Royal Commission in Jubail and Yanbu to supply these companies with certain products produced in the plant.

Salama Al-Enizi, chairman of Gulf Tubing Company, said that the plant will also manufacture drill pipes, oil and gas well covers, pipeline steam boilers, heat exchangers, petroleum furnaces, construction pipelines, mechanical equipment and small pipelines.

The plant is expected to generate 1,200 jobs, including 800 direct jobs for Saudi Arabian youth and 400 indirect jobs at the plant, added Al-Enizi.

The chairman of GTC also stated that there will be a two-year training programme in Germany and Czech Republic, pertaining to the operation and maintenance of the plant. The project is likely to be completed by 2017, added reports.