Session (6): Industry, Investment & Innovation

Saudi Arabia and the wider GCC were once fertile territory for new steelmaking investment, which has seen the region become self-reliant in many long products and increase its presence on export markets. Although the pace of investment has slowed in the last decade, a multitude of recent new project announcements have brought the theme of investment back to the fore. Saudi Vision 2030 is set to drive demand growth in the kingdom over the next decade, and economic diversification will demand flat products whose regional production remains limited. India’s Essar Group plans to build a 3 million tonnes/year hot strip mill in Saudi Arabia, while Saudi Aramco is partnering with Baosteel to build the long-awaited first plate mill in the kingdom. India’s Vedanta is meanwhile planning on exploring zinc deposits in Saudi Arabia that could be processed and supplied, among others, to steel galvanizers. The long-ago touted iron ore pelletising plant in Saudi Arabia is however yet to materialise. These prospective projects are in line with the Saudi National Industrial Development Center (NIDC)’s Minerals and Metals Cluster strategy, and are designed to supply burgeoning new end-use sectors in the kingdom. What support is NIDC providing to attract foreign investment into steelmaking in Saudi Arabia, and what progress has been made so far on its strategy for the steel industry? What technological specifications will be required for the prospective plants and where will equipment be sourced from? In neighbouring United Arab Emirates, meanwhile, Emirates Steel is pushing ahead with its long-awaited Phase 3 hot strip mill expansion. The firm has already been operating a carbon capture and storage (CCS) plant since 2016, a technology which is now increasingly advertised as being significant in the first stage of global steelmaking decarbonisation. The firm has also signed an agreement with Abu Dhabi National Energy Company to develop a green hydrogen project to be used in steelmaking. What potential does the GCC have for decarbonising its steel industry and how can this be achieved? How can steelmakers work together with technology suppliers to ensure they utilise technology suitable to the regional conditions? Given the GCC’s economic diversification and growth, what are the prospects for further investment into steelmaking capacity? Will there be sufficient regional raw materials supply to support this? All these topics and more will be discussed during this session.