Turkish steel conglomerate Tosyalı has signed a memorandum of understanding to develop a flat steel complex on Saudi Arabia’s east coast, in Ras Al Khair industrial zone.
Tosyalı chairman Fuat Tosyalı inked the deal with National Industrial Development Centre (NIDC) EVP, Minerals & Metals Matar Al-Harthi on the sidelines of the Future Minerals Forum held in Riyadh from 9-11 January. The signing ceremony was attended by Saudi Arabian Minister of Industry and Mining Resources Bandar Alkhorayef and NIDC chief executive Khalil Ibn Salamah, Kallanish learns.
Tosyalı group will develop the configuration and requirements of a complex for the production of a combined 4 million tonnes/year of hot rolled coil, cold rolled coil, galvanised coil, tinplate and electrical steel. Its primary focus will be to cater to the local automotive, food packaging, machinery and energy sectors, as well as for exports.
Tosyali has a fast-track record of finishing investments. Besides its established direct reduced iron-based steelworks in Algeria, the group completed a joint feasibility study with Emirates Steel in 2023 for a flat steel plant in Abu Dhabi. However, the final investment decision still needs to be made.
The Turkish steelmaking group also recently acquired Spanish helical welded steel (SAW) tube maker Baika Steel Tubular System (STS). It is targeting 12 million tonnes/year of overall capacity in two years’ time.
India’s Essar Group signed an MoU with NIDC in October 2021 for a flat steelmaking investment, for which land in Ras Al Khair was allocated in December that year. On the ground, however, the project is yet to see any promising progress.