SOLB STEEL

SOLB S T E E L

Achieving excellence in a thriving market www.solbsteel.com

S O L B

2

S T E E L

WWW.EMEOUTLOOKMAG.COM

M

A

N

U

F

A

C

T

U

R

I

N

G

Steely Determination AMID THE CONSTRUCTION BOOM Solb Steel is situated right in the heart of southern Saudi Arabia’s extensive industry demand, leading the way across the region’s megaprojects to become of the country’s top consumer brands Writer: Matthew Staff Project Manager: Joshua Mann

rom humble beginnings, Solb Steel is quickly emerging into a dynamic giant in the steel manufacturing industry in Saudi Arabia as it earmarks not just a consolidation, but a substantial expansion of its product range and production capacities in the near future.

Based in Jazan amid one of the country’s most modern and advanced industrial zones, the Company’s range of raw steel products - incorporating steel billets, re-bars and long products - have played a vital part in not just meeting the needs of specific largescale projects in the country, but in addressing a major national trend and extensive consumer demand.

“Steel is considered as one of the major materials for infrastructural development in any country,” the Company explains. “Considering the currently ongoing construction boom in the Kingdom of Saudi Arabia in general, and in the southern region in particular, the Pan-Kingdom Investment Company has taken a decision to establish a regional centre for production of steel and allied products in the up-and-coming Jazan Economic City in the southern province of Jazan.

“Work to create this regional centre

was taken up stage-wise, against a total investment cost of approximately 10 billion Saudi riyals. Construction of the first stage started in earnest during 2009, and the Pan-Kingdom Company shall - by end of the financial year, 2011 - commission the first stage and commence supply of steel billets and constructional quality re-bars.”

As part of the economic and social development programme for the country, these ‘economic cities’ shall ultimately assist the further regional and industrial diversification of the country, with Jazan in particular thriving from perspectives of employment and industry alike.

And Solb Steel is situated at the heart of it.

WWW.EMEOUTLOOKMAG.COM

3

S O L B

S T E E L

SMS GROUP

F

or many years, South Steel Company - part of Pan Kingdom Invest in Saudi Arabia - has operated its mini mill supplied by SMS Group; a positive relationship now being continued via the successful startup of a new 500,000 tonnes-per-year (TPY) combined rolling mill for bars and wire rods in Jizan Economic City.

SMS has supplied the complete mini mill to the lucrative Jizan Economic City in Southwest Saudi Arabia in 2009, comprising a steel plant with an annual production of one million tonnes and a connected rolling mill with a rebar production capacity of 500,000 tpy.

The newly commissioned combined rolling mill plant features a continuous single strand rolling mill while the roughing mill train is followed by an intermediate/finishing HL type multigroove train with horizontal and vertical rolling groups.

Producing steel through the EAF-CC method means the dependence on raw materials like DRI, HBI and steel scrap is essential

Producer of choice

As the only steel factory in the southern region and in addressing the construction boom currently being enjoyed in the same area, the overall project further thrives as a result of its coastal location, making the import of essential raw materials all the more efficient for companies like Solb Steel.

Producing steel through the EAF-CC method, the dependence on raw materials like DRI, HBI and steel scrap is essential, and the rewards being reaped as a consequence of these multiple advantages have been palpable in recent years.

For the project alone, Solb Steel will produce one million tonnes of liquid steel, and the same amount of billets of varying sizes.

All-told, the Company has a production capacity of 1.1 million tonnes a year, leaving room for expansion and a goal to drive towards

4

WWW.EMEOUTLOOKMAG.COM

... the Company has a production capacity of 1.1 million tonnes a year, leaving room for expansion and a goal to drive towards for employees and suppliers alike

One of the key elements of the mill is the 10-passes MEERdrive速 finishing block with the revolutionary and most advanced individual drive technology included; implementing advanced technologies never before seen in the region.

Downstream, the mill displays a fully automatic bundle forming and tying station with a parallel wire rod line composed of a cooling conveyor, a coiling and transporting line plus a coil pressing and tying station.

Xxxxxxxxthe xxxxxxxx xxxxxxxxx Overall, new xxxxxxxxxxx rolling mill will contribute to an entire plant concept that meets all requirements for efficiency, flexibility and reduced maintenance.

The expectations of South Steel Company regarding sustainable competitiveness are fulfilled by the operational reliability and high productivity of the mill and its equipment.

T +49 2161 350 1724 E barandwirerodmills@sms-group.com

www.sms-group.com

Xxxxxxxx xxxxxxxx xxxxxxxxxxx xxxxxxxxx

We transform … the world of bar and wire rod.

Economic success with sophisticated solutions.

SMS group offers solutions for bar and wire rod mills that are just as versatile: all sizes, materials and alloys can be efficiently produced on the bar and wire rod mills.

Complete bar and wire rod mills, where all components are perfectly matched – this is the success formula for enhanced competitiveness. This guarantees that technology, automation and the individual process work in perfect harmony. The result is top quality, high productivity and lower capital and operational costs.

SMS group designs the bar and wire rod mills in close cooperation with the plant owners.

Quality unites – a fact that our customers and we discover time and again with every new project. Together we develop production concepts that give our partners the competitive edge in their business. Thanks to this good cooperation, the SMS group is a leading international company heavy machinery and plant engineering.

SMS GROUP GMBH

Ohlerkirchweg 66 41069 Mönchengladbach, Germany

Phone: +49 2161 350-1724 Fax: +49 2161 350-1753

SMS MEER SPA

Via Udine 103 33017 Tarcento (Udine), Italy

Phone: +39 0432799111 Fax: +39 0432792058

barandwirerodmills@sms-group.com www.sms-group.com

S O L B

S T E E L

for employees and suppliers alike.

Embracing a multinational workforce comprising not just Saudi locals, but the best expertise from the neighbouring region also, this strategy is further compounded by a supply chain that takes full advantage of the Middle East’s prime middleground and accessibility

6

WWW.EMEOUTLOOKMAG.COM

to the best in global materials, machinery, equipment and training.

The result: a plethora of megaprojects being undertaken across international airports, palaces and high-rise buildings.

Over the next five years, the extent of projects falling under Solb Steel’s remit is only likely to expand also, as it looks to become more vertically integrated via the production of its own raw materials - including iron ore - to then manufacture steel right from the beginning of each process.

Such sustainability and efficiency derives from the Company’s initial mission and vision which revolves around reputation and value for its customers and stakeholders alike.

“Our mission is to maximise stakeholders’ interests by becoming the producer of choice in the region for all those who respect progress in tandem with solid values,”

M

A

N

U

F

A

C

T

U

R

I

N

G

Our mission is to maximise stakeholders’ interests by becoming the producer of choice in the region for all those who respect progress in tandem with solid values

The Company is looking to become more vertically integrated via the production of its own raw materials

Solb Steel says. “We want to be recognised as a pioneer in making steel and lead by fostering development that brings quality products supported by a culture of trust.”

Excellence in the industry

The final goal revolves around its local influence and the commitment to serving the community “with care and conscience to make a tangible difference to lives wherever possible”.

Corporate social responsibility (CSR) is an area that drives all of Solb Steel’s industrial operations and success,

starting from its personal relationships with employees, suppliers, stakeholders and customers; and emanating its way through the internal structure of the Company, through aspects like health & safety.

“Solb Steel has [recently] successfully completed another milestone in SAP by implementing an environment, health & safety (EHS) module,” the Company says.

“This module will help a lot in proper reporting and recording of incidents and health related to the work environment.”

Finding a balance between ruthless business acumen and success, and

careful, collaborative and responsible operations is something that Solb Steel has achieved over the years, culminating in the business being placed on the list of the top 100 consumer brands in Saudi Arabia.

It also now perfectly sets the platform for further capacity and production expansion to ensure it continues to meet the needs of the increasingly expectant market in the years to come.

“Solb Steel Company was placed on the list of the top 100 consumer brands in Saudi Arabia, handed over during a ceremony organised by the Asir Press and Publication under the auspices of the Minister of Culture and Information and the presence of the President of the Board of Directors Foundation HRH Prince Bandar bin Khalid Al-Faisal,” the Company recalls. “The selection of the best one hundred brands in the Kingdom of Saudi Arabia, according to a survey conducted by Al-Watan newspaper in collaboration with Ipsos Global Statistics and Studies, selected Solb Steel for excellence in the industry and high production quality as the first plant in the Jazan Economic City, and as the largest industrial facility in the southern region.”

WWW.EMEOUTLOOKMAG.COM

7

SOLB STEEL HEAD OFFICE PO Box 111 Jizan 45971 Saudi Arabia T: +966 11 400 1845 Ext. 4444 | 4010 F: +966 11 225 0446

www.solbsteel.com