HSBC Middle East, a division of UK-based global banking and financial services company HSBC Holding Plc, has signed a $435 million long-term loan facility with Saudi Basic Industries Corporation's (SABIC) subsidiary Saudi Iron and Steel Company (Hadeed) to finance a new steel plant and rolling mill in Jubail, Saudi Arabia, local media have reported.
Accordingly, Hadeed's new steel plant and rolling mill, the equipment for which will be supplied by Italian plantmaker Danieli, aims to produce annually one million mt of billets and 500,000 mt of rebar.
With total production capacity increased to six million mt, Hadeed will now be able to use its rolling mills at full capacity without relying on imported steel.
Production from the new steel plant is expected to start in the second half of 2012.
Hadeed's long steel products will be used in the construction and infrastructure industries in Saudi Arabia and across the region.
"Steel consumption in Saudi Arabia has rapidly surged over the past few years on the back of a construction boom and growing investment in infrastructure. With this new Danieli equipment, Hadeed, which is the largest steelmaker in the MENA region, will be able to provide Saudi Arabia and the wider region with very high specification wire rod products which will domestically meet the needs of ongoing and planned projects," stated Olivier Khalife, who led the deal in HSBC's project and export finance team.