It is reported that Luxemburg-based steel giant ArcelorMittal will approach Saudi Arabian banks in May to finance its SAR 2.5 billion (around $670 million) seamless tube joint venture (JV) mill with local steelmaker Bin Jarallah Group, in Jubail Industrial City in Saudi Arabia.
Accordingly, the financing bid comes nearly one year after ArcelorMittal decided to delay the plant while it waited for engineering procurement and construction prices to fall.
As SteelOrbis previously reported, Arcelor Mittal will hold a 51 percent share in the mill, while the Bin Jarallah Group will hold the remaining 49 percent. The construction of the mill was originally slated for the end of Q1 of 2008, while the mill was expected to be completed by Q4 of 2009. However, the project was delayed because of difficulties in securing project finance. In August 2008, ArcelorMittal placed an order with SMS Meer of Germany for the supply contract.
ArcelorMittal aims to complete the financing by the end of July this year. The Saudi Industrial Development Fund is also in talks to provide partial finance for the mill.
The plant, which will be only the second seamless tube steel mill in the GCC (Gulf Cooperation Councils) countries, will have an annual capacity of 500,000 mt.