The company has secured a $692 million credit facility from a consortium of banks and institutional investors led by the Saudi British Bank (SABB).
Britain's J.O. Steel Holdings plans to invest $865 million to set up an iron plant in Saudi Arabia's Ras Al Khair Industrial City, the company disclosed today on the London Stock Exchange.
According to the company's statement, it is expected to enter into commercial production in the first quarter of 2025. The company will also provide $173 million in liquidity via equity leveraged through convertible securities.
The new plant will have an annual maximum production capacity of 1.8 million tons and commercial production is expected to begin in the first quarter of 2025.
JO Steel Holdings is a steel manufacturing holding company incorporated under the laws of the United Kingdom. It currently owns shares in several steel mills located in South Asia and Africa. Belgian industrialist Javed Obgenhaven owns 92% of the company.
The company said the new plant will be established in the area north of Jubail on the east coast of the kingdom. The company will sign a financial lease contract for the factory land with the Royal Commission for Jubail and Yanbu in September.
