Syria has taken a significant step toward rebuilding its domestic steel production capacity. The Syrian Ministry of Economy and Industry has signed a 30-year strategic memorandum of understanding with Saudi Arabia-based Ithraa Holding Group to rehabilitate, modernize and restart operations at the General Company for Iron and Steel Products in Hama.
The agreement was signed on August 28 during the 63rd Damascus International Fair, with the project focusing on rehabilitating the plant’s existing infrastructure, upgrading its production lines and gradually increasing output capacity.
Under the planned timeline, the first five years will be dedicated to rehabilitation, preparation and modernization works, followed by a 25-year operational period. Production is targeted to increase progressively, reaching at least 350,000 tonnes per year within four years.
The restart of the Hama plant marks an important development in efforts to bring Syria’s idle or underutilized industrial infrastructure back into operation. As construction and infrastructure activity gradually recovers, the project is expected to support efforts to meet growing domestic steel demand through increased local production.
The agreement also signals a potential deepening of economic and industrial ties between Syria and Saudi Arabia. Once the Hama plant reaches its targeted production level, it could strengthen Syria’s domestic steel supply and help reduce the country’s reliance on imports to some extent.
With an annual production target of 350,000 tonnes, the project could restore the Hama plant to a more significant position in Syria’s steel market. Market participants are expected to closely monitor the progress of rehabilitation works and the pace at which the planned investment is implemented in the coming period.
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