Rajhi Steel announces the completion of 34% of the work project of rolling million tons valued more than 800 million riyals

Mr. Mahdi Al-Qahtani, CEO of Rajhi Steel revealed that the company is preparing to start the operation of rolling a million tons work project in the second quarter of 2012, it will add one million tons of steel worth of production to the Saudi market. Rajhi Steel’s total production will come near to two million tons of rebar steel and commercial coils per year. Meanwhile, the percentage of completed work of civil construction and pertaining structures in the project has reached 34% so far, after completing and reviewing the entire engineering designs for projects.
Supporting that the efforts during the coming period will be focused on projects that will contribute to widening the group’s manufacturing capacity. In addition, it will open up new investment horizon that will reflect positively on the size and business model in the region. He pointed to the company's efforts behind the new investment opportunities, which will achieve economic integration within the company’s work as it benefits from the growth opportunities at the local level.
The aim of the project, which has witnessed signing the contract of installing and supplying in April of the last year 2010, will be to produce 750 thousand tons of rebar rods sizes 10-40 mm, and 250 thousand tons of coils 5.5 - 16 mm smooth and barbed.
The project contains belt reheat furnace with 200 ton production capacity per hour, also includes a line for rods rebar production supplied with modern technological capabilities aiming to improve the product’s quality as well as the factory’s total return, in which rods can be produced in accordance with the US and British standards and in different sizes.
The project also includes coil production line, which will be considered as a source of crude for the cutting and bending lines of Rajhi Steel that has been established recently in order to serve the contracting sector and construction projects by means of providing various sectors that help in completing the blacksmith work faster and with less cost.
It has also been taken to account that the possibility of charging the hot belt directly from the steel machine to re-heating furnace in order to reduce fuel consumption, and therefore the positive impact in terms of cost and influence on the environment.
Al-Qahtani argued the need to expand in order to accommodate the demand on steel of all kinds witnessed by all sectors in the Kingdom, as the financial trading in the Saudi industrial sector and on this kind of products amount to 1.5 billion riyals. Pointing out that the company plans to employ 30% of the total hiring from the Saudi youths. It is now being coordinated to select these cadres and the planned to train them theoretically and practically in order to be ready for work at the actual beginning of the factory’s operation. This is based on the ongoing orientation of Rajhi Steel to attract qualified teams in a parallel way with qualifying and training local young professionals.
From the beginning of the project’s first stages, well-qualified staff have been  employed, which has had a tangible impact on the accuracy of the implementation of what has been achieved up to now and with what will be done until the beginning of operation with Allah's help. He also indicated that one aim of the company is to serve and support the Saudi economy through the expansions of large-scale projects that help meet the needs of different sectors and provide high quality products capable of competing locally and globally.