SeAH CSS announced that SeAH Gulf Special Steel Industries(‘SeAH GSI’), a joint venture between SeAH CSS and ARAMCO, held a groundbreaking ceremony for a seamless stainless steel pipe plant in February.

Some 70 guests from SeAH GSI and the government of Saudi Arabia, including Ms. Euisook Park, Vice-chairman of SeAH Holdings, Mr. Teasung Lee, CEO of SeAH Holdings, Mr. Youngju Yang, CEO of SeAH Besteel Holdings, Mr. Sangeun Lee, CEO of SeAH CSS, Mr. Al-Huraish, Vice President of ARAMCO, Mr. Al-Rayes, CEO of Dussur, Mr. Al-Qahtani, CEO of SPARK and Mr. Jooyong Park, the Korean Ambassador to Saudi Arabia, attended the ceremony.

Since jointly established by SeAH CSS and ARAMCO in July 2022, SeAH GSI had been securing and preparing the site to commence construction of the Saudi Arabia’s first seamless stainless steel pipe plant. The seamless stainless steel pipes and tubes are highly value-added products that can be applied to power generation, oil refining and chemical processing, because, unlike the ordinary steel pipes, they have no joint, thus, they are highly resistant to pressure and corrosion. Construction of the USD 230 million plant of SeAH GSI, which will be built in a 177,851 square meter site in King Salman Energy Park(‘SPARK’), an industrial park ARAMCO is promoting as the energy industry hub, is expected to be completed in the first half of 2025, and the plant is expected to manufacture seamless stainless steel pipes and tubes at the rate of 20,000 tons per year, upon completion.

For SeAH CSS, this plant does not just represent its local manufacturing capacity. The company plans to use this plant as a strategic hub in the Middle East to strengthen its presence in the local energy and infrastructure markets by building an integrated portfolio with its SeAH affiliates that specialize in steel products and special metal materials, such as SeAH Besteel and SeAH Aerospace & Defense.

The seamless stainless steel pipe plant is expected to create a synergy between the manufacturing hub localization strategy of SeAH CSS and the supply chain localization policy of the Saudi government. As an example, the plant of SeAH CSS is expected to create some 200 new jobs in Saudi Arabia. Also, SeAH Holdings is increasing its influence in the Middle East by sighing an MOU with ARAMCO on a recycling business in Saudi Arabia on January 30.

Mr. Sangeun Lee, CEO of SeAH CSS, commented, “Making the seamless stainless steel pipes and tubes require a high degree of technological know-how, and only some countries with advanced steel-making know-how were able to produce them. With this plant we are building in Saudi Arabia, SeAH CSS will contribute significantly to the Kingdom’s efforts on developing manufacturing industry and tell the world how competitive the Korean steel manufacturing industry is, by supplying the seamless steel pipes and tubes to the core businesses in the country. We will continue to solidify the partnership with ARAMCO, through which we will actively seek for other business opportunities in the areas of energy, infrastructure and smart city in Saudi Arabia and the Middle East.”

[Picture] SeAH GSI, a joint venture by SeAH CSS and ARAMCO, held a groundbreaking ceremony for its seamless stainless steel pipe plant in Saudi Arabia, and the VIPs who attended the ceremony posed for a picture.

(From left) Mr. Youngsoon Kim, President of SeAH GSI, Ms. Euisook Park, Vice-chairman of SeAH Holdings, Mr. Al-Haddad, Chairman of SENDAN, Mr. Joonyong Park, the Korean Ambassador to Saudi Arabia, Mr. Al-Huraish, Vice President of ARAMCO, Mr. Teasung Lee, CEO of SeAH Holdings, Mr. Al-Harbi, CEO of ARAMCO Korea, Mr. Al-Rayes, CEO of Dussur, Mr. Al-Qahtani, CEO of SPARK and Mr. Sangbum Hong, The head of sales division of SeAH Besteel