According to a statement submitted by Al Yamamah Steel Industries Company to the Saudi Exchange (Tadawul), the total value of the contract amounts to SAR 270 million (approximately US$71 million).
Under the agreement, Danieli will be responsible for the engineering, manufacturing, supply and installation of the steel billet production equipment at the facility in Saudi Arabia. The project is expected to be completed within two and a half years, with the plant scheduled to be commissioned by 2029.
Al Yamamah Steel Industries said the financial impact of the investment is expected to begin reflecting in the company's results from the second half of 2028.
Headquartered in Buttrio, Italy, Danieli is one of the world's leading suppliers of plants and equipment for the ferrous and non-ferrous metals industries. The company provides design, engineering, equipment supply and commissioning services for metal production facilities, including electric arc furnaces (EAFs) and rolling mills.
Meanwhile, last month Al Yamamah for Reinforcing Steel Bars Company received approval to issue 25 million new shares, each with a nominal value of SAR 12, as part of a capital increase.
Al Yamamah Steel announced that it will subscribe to 6.3 million shares, representing an investment of SAR 75.6 million, to be financed from the company's own equity.
The proceeds from the share issuance will be used to strengthen the subsidiary's financial position and finance the construction of the second phase of the steel plant.
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