SABIC affiliates, Safco and Hadeed have signed an agreement to construct a 50:50 owned facility in Jubail Industrial City for the production of flat steel products with an annual capacity of 1.7 million metric tons. In addition to this project, Hadeed will construct a rebar and wire rods production facility to add 500K metric tons annually. The facility will utilize the quantity of gas allocated to Safco plant in Dammam. The Ministry of Petroleum and Mineral Resources has allocated additional quantities of gas for this project. During the construction phase of the flat products facility, Safco has reached agreement with Sabic affiliate, the Saudi Methanol Company (Ar-Razi) to make use of the above referenced gas quantity to produce methanol for Safco for an interim period until the completion of the flat steel products project, scheduled for a period estimated at four years. Mohamed Al-Mady, Sabic vice-chairman and CEO and chairman of Safco, affirmed that such agreements will positively impact the results of the companies and help Safco maintain the level of profitability. They will contribute to promoting steel industry in the Kingdom. __
