NIDC signs MoU with Brazil's Vale to build iron pellets factory in Ras Al-Khair Industrial City for SAR 4 bln

Logo of The National Industrial Development Center (NIDC)

The National Industrial Development Center (NIDC) signed a memorandum of understanding (MoU) with Brazil's Vale, on the sidelines of the Future Investment Initiative (FII) Conference, to build a factory and logistic center for the processing and production of high-quality iron pellets in Ras Al-Khair Industrial City.
 

According to the center, the project is one of the outputs of the National Industrial Strategy and is the first initiative to secure supply chains for the iron sector. The first phase's value is estimated at around SAR 4 billion, with a production capacity of 4 million tons per annum (tpa) of iron pellets, which is the main material for steel production.
 

The new production capacity will add new steel products targeting advanced sectors such as army, packaging, shipbuilding, oil and gas as well as automobiles. The project is expected to create 400 direct jobs.
 

Further, NIDC indicated that there is an urgent need to increase iron production capacity to meet the growing demand resulting from growth in the construction sector.
 

The center added that iron pellets are the main raw material used in steel industry, noting that it is necessary to ensure a continuous supply of raw materials for the local industry. NIDC works with international partners to develop the production of iron pellets in the local market.
 

The center, under the supervision of the Ministry of Industry and Mineral Resources, estimated the local need at more than 5 million tpa, to be added to the annual production capacity of almost 16 million tpa.