Saudi Arabia's Public Investment Fund (PIF) is reported considering a significant move into the steel industry by acquisition of a rebar mill.
The target company possesses a rebar mill in Riyadh, boasting an annual capacity of 350,000 tonnes, while also operating an electric arc furnace billet plant on the country's west coast with an capacity of 850,000 tonnes per year. This move by PIF showcases a potential strategic expansion into the steel sector, which could have notable implications for the region's industrial landscape.
Saudi Arabia's giga projects fall into two categories: those financed by PIF's $500 billion assets and those funded by the government. PIF aims to invest $1 trillion by 2025, highlighting a significant commitment to economic growth and development. Securing a local supply of rebar from PIF's owned entities makes sense, as it can help ensure a steady and reliable source of construction materials for the giga projects in Saudi Arabia. This strategy could contribute to the successful execution of these projects.