Tabuk steel factory to start operations in 2024

13 November 2023

 

Register for MEED's guest programme 

MS-Metals is building a fully computerised and automated factory for metal solutions in Tabuk, Saudi Arabia. Construction work has already started, and the factory is expected to be operational by March 2024.

The plant aims to capitalise on the growth of Saudi Arabia’s construction projects market, which registered $10.3bn in contract awards in the first half of 2023 and is on course for an all-time record by the end of the year. As well as the total value of contract awards rising, the increase in the scale and complexity of projects such as Neom has spurred innovation in the manufacturing construction sector.

The total area of the planned MS-Metals plant is 33,400 square metres (sq m). It has 13,500 sq m of production facilities and 12 assembly lines to serve its product range.

Once operational, the factory will supply light gauge steel (LGS) structures for modular and prefabricated buildings, bathroom and kitchen pods and containerised modular units for construction projects in Saudi Arabia and the wider GCC region.

Using a manufacturing method known as computer numerical control, the Tabuk-based factory will use preprogrammed software to automate its machines.

“This facility will mark a milestone in Saudi Arabia,” company representatives told MEED. “It boasts fully computerised production lines, ensuring faster and more efficient production and assembly.”

“MS-Metals has employed a comprehensive automation strategy in its upcoming factory, featuring 12 guided production lines, including the LGS section and the production machines for roofing and side bending, all fully computerised."

Strategic location

The surge in project activity in the kingdom, together with rising demand, has incentivised manufacturers and suppliers to focus on efficient delivery, especially given the challenges posed by the high costs of materials and transportation.

The manufacturer emphasises the potential for contemporary metal solutions, including LGS buildings and modular construction, within Saudi Arabia.

"Saudi Arabia presents a huge opportunity for modern metal solutions,” says MS-Metals. “Since fulfilling the kingdom's ambitious construction plans will require vast resources, proximity to the projects will be instrumental in saving time, costs and resources."

The upcoming factory is strategically situated within 180 kilometres (km) of all the Neom projects and is 480km from the Red Sea Project.

This location enables MS-Metals to ensure a stable and timely supply for ongoing and future projects, the manufacturer says.

“The economic boom in the kingdom has prompted several upcoming projects to be located in close proximity to the Tabuk area, which works to the advantage of MS-Metals. This factory is strategically situated close to key gigaprojects such as Neom, Amaala and the Red Sea Project, creating a highly efficient and cost-effective supply chain for construction materials.”

“One of the primary benefits is the capability to offer same-day deliveries to projects such as Neom, The Line, Trojena, Oxagon, Amaala, the Red Sea Project and Al-Ula.

“Additionally, products such as bathroom and kitchen pods, which are not readily available in Saudi Arabia and are typically imported, will now be manufactured and assembled closer to the projects. This shift will help our clients to reduce costs and decrease their dependence on imports.”

Off-site construction

The manufacturer will produce prefabricated modules in its factory and assemble them on site.

MS-Metals emphasises the advantages of this approach, saying: “By using off-site fabrication and advanced assembly techniques, we will offer the fastest production and delivery times for the gigaprojects.

“Our factory will also have the unique capability to construct light gauge warehouses reaching up to 30 metres in width, a feat that is unheard of in the Middle East.”

According to the firm, this factory will also be the only facility in the kingdom with the capacity to construct modular and LGS buildings with up to five storeys.

MS-Metals is a subsidiary of the UAE-based ARCCO Group of Companies that supplies complex infrastructure development, integrated logistics solutions and oversight to the UAE, Saudi Arabia and other GCC countries. ARCCO Group has been catering to the UAE construction industry since 1994. The group has eight subsidiaries across the GCC.
https://image.digitalinsightresearch.in/uploads/NewsArticle/11292400/main5307.jpg
Sarah Rizvi
Related Articles
  • Saudi Arabia evaluates 2GW energy storage bids

    23 October 2024

    National Grid Saudi Arabia, a wholly-owned subsidiary of Saudi Electricity Company (SEC), is evaluating bids for the contract or contracts to supply battery energy storage systems (bess) with a total combined capacity of up to 2,500MW.

    According to a source familiar with the project, the SEC entity solicited bids directly from equipment manufacturers, which include China's Sungrow, Hithium and Huawei Technologies, among others, to supply batteries, which will be installed by an engineering, procurement and construction (EPC) contractor.

    It is understood that SEC has tendered the  EPC package or packages separately.

    MEED previously reported that the planned facilities, each with a capacity of 500MW or roughly 2,000 megawatt-hours, are located in or within the proximity of the following key cities and load centres:

    • Riyadh
    • Qaisumah
    • Dawadmi
    • Al-Jouf
    • Rabigh

    The main applications for the planned bess facilities include load shifting, black start, frequency regulation and voltage support.

    They are envisaged to replace part load operation of existing power plants by charging and discharging electricity according to the system load variations and primary and secondary reserves, among other potential applications.

    In August, National Grid SA awarded the EPC contracts for three energy storage systems to Riyadh-based investment group Algihaz Holding.

    The projects are located in Najran, Madaya and Khamis Mushait.

    According to an industry source, the contracts are valued at more than $800m.

    Surging growth

    The overall capacity of deployed battery energy storage systems globally is expected to reach 127GW by 2027, up from an estimated cumulative deployment of 36.7GW at the end of 2023, according to GlobalData.

    The global information services provider cited Chinese companies BYD and CATL and South Korean companies LG Energy Solutions and Samsung SDI among the top battery technology providers globally.

    Carmakers Tesla, Volkswagen, Stellantis, General Motors, Mitsubishi Motors and Hyundai were identified as the key end markets for battery products so far.

    GlobalData expects battery energy storage deployment to increase "due to a large number of countries opting for battery storage systems to enhance their power sector transformation".

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12779739/main.gif
    Jennifer Aguinaldo
  • Saudi Arabia receives 4.5GW solar and wind prequalifications

    22 October 2024

     

    On 22 October, utility and renewable energy developers submitted their statements of qualifications (SOQs) for the contracts to develop five renewable energy independent power projects (IPPs) in Saudi Arabia.

    Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), issued the prequalification request for the IPPs making up the sixth round of the kingdom's National Renewable Energy Programme (NREP) on 29 September.

    Firms that are understood to have submitted SOQs include international developers such as Japan's Marubeni and Jera; France's EDF Renewables, Engie and TotalEnergies Renewables; as well as Chinese and local utility developers.

    The projects, comprising four solar photovoltaic (PV) IPPs and one wind IPP, will have a total combined capacity of 4,500MW.

    The following schemes comprise the NREP's sixth round:

    • 1,500MW Dawadmi wind IPP (Riyadh)
    • 1,400MW Najran solar PV IPP (Najran)
    • 600MW Samtah solar PV IPP (Jizan)
    • 600MW Al-Darb solar PV IPP (Jizan)
    • 400MW Al-Sufun solar PV IPP (Hail)

    SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

    US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP sixth-round tender. Germany's Fichtner Consulting and US-headquartered CMS are providing technical and legal consultancy services, respectively.

    SPPC revealed the following lowest and second-lowest bidders for the contracts to develop four solar PV projects under the fourth round of the NREP on 21 October.

    2,000MW Al-Sadawi solar IPP (Eastern Province)

    • L1: Abu Dhabi Future Energy (UAE)/Korea Electric Power Corporation (Kepco, South Korea)/GD Power Development (China): $c1.29 a kilowatt-hour (kWh)
    • L2: SPIC Huanghe Hydropower Development (China)/EDF Renewables (France): $c1.31/kWh

    Al-Masaa solar IPP (Hail): 1,000MW

    • L1: SPIC/EDF Renewables (France): $c1.36/kWh
    • L2: AlJomaih Energy & Water (local) / TotalEnergies Renewables (France): $c1.40/kWh

    Al-Hinakiyah 2 solar IPP (Medina): 400MW

    • L1: SPIC/EDF: $c1.51/kWh
    • L2: Masdar/Kepco/Nesma: $c1.57/kWh

    Rabigh 2 solar IPP (Mecca): 300MW

    • L1: AlJomaih Energy & Water / TotalEnergies Renewables: $c1.78/kWh
    • L2: Masdar/Kepco/Nesma: $c1.89/kWh

    MEED previously reported that SPPC plans to award the NREP round-five contract before the end of the year.

    Photo: Pixabay

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12774001/main0411.jpg
    Jennifer Aguinaldo
  • Oman awards $186.5m sewer network packages

    22 October 2024

    Oman's Nama Water Services has awarded several contracts with a total combined value of $186.5m for the construction and development of packages of a sewer network catering to Muscat.

    The B7A contract to build a sewer network comprising a main trunk sewer and pumping station in South Azaibah in the Muscat Governate has been awarded to the local United Gulf Construction Company, which offered to build the project for $54.5m.

    Nama Water Services tendered the contract in September last year. In addition to the supply and installation of pumping stations, the scope includes the construction of a 3.5-kilometre (km) gravity sewer network and property and house connection chambers.

    Nama Water Services awarded a second contract – C13 Package C4 – worth $30m to the local firm Target. The main scope includes the construction of a 16km gravity sewer network with diameters ranging from 200 millimetres (mm) to 600mm in Oman's Seeb catchment. It also includes the construction of about 265 gravity sewer manholes.

    Cairo-headquartered Arab Contractors won a $35m contract to construct a sewer network at the C5A and C5B areas in the Aseeb catchment in Muscat.

    C5A involves the construction of a 35km gravity sewer network with diametres of 200mm-900mm and 420 gravity sewer manholes. 

    C5B entails the construction of a 32km gravity sewer network with similar diametres to C5A, and a further 375 sewer manholes.

    Nama Water Services awarded a fourth contract to Target. Valued at $67m, it involves the construction of sewer network B7D, as part of the Bausher sewer infrastructure at Al-Ansab in Oman.

    The main project scope involves the construction of a 75km gravity sewer network, 103km of property and house connection chambers and a pump station.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12772678/main.jpg
    Jennifer Aguinaldo
  • Team offers $c1.29/kWh for 2GW Sadawi solar IPP project

    21 October 2024

    A developer team that includes UAE-based Abu Dhabi Future Energy Company (Masdar) has submitted the lowest bid for a contract to develop the 2,000MW Al-Sadawi solar independent power project (IPP) in Saudi Arabia.

    The consortium, which includes South Korea's Korea Electric Power Corporation (Kepco) and China's GD Power Development, submitted a levelised cost of electricity of hals 4.847 ($c1.29) a kilowatt-hour (kWh) for the contract to develop the scheme, which is located in the Eastern Province.

    The second-lowest bidder is a team that includes China's SPIC Huanghe Hydropower Development and France's EDF Renewables, which offered to develop the project for $c1.31/kWh.

    Saudi Power Procurement Company (SPPC) received six proposals from companies for the contracts to develop and operate four solar photovoltaic (PV) IPP projects in Saudi Arabia in August.

    The projects, which have a total combined capacity of 3,700MW, are being tendered under the fifth procurement round of the kingdom's National Renewable Energy Programme (NREP).

    According to SPPC, the lowest and second-lowest bidders in the remaining schemes under round five of the NREP are:

    Al-Masaa solar IPP (Hail): 1,000MW

    • L1: SPIC/EDF Renewables (France): $c1.36/kWh
    • L2: AlJomaih Energy & Water (local) / TotalEnergies Renewables (France): $c1.40/kWh

    Al-Hinakiyah 2 solar IPP (Medina): 400MW

    • L1: SPIC/EDF: $c1.51/kWh
    • L2: Masdar/Kepco/Nesma:  $c1.57/kWh

    Rabigh 2 solar IPP (Mecca): 300MW

    • L1: AlJomaih Energy & Water / TotalEnergies Renewables: $c1.78/kWh
    • L2: Masdar/Kepco/Nesma: $c1.89/kWh

    Saudi utility developer Acwa Power is not among the 23 companies that were prequalified to bid for the fifth round of NREP projects.

    US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP fifth-round tender. Germany's Fichtner Consulting is providing technical consultancy services.

    The round five solar PV IPPs take the total capacity of publicly tendered renewable energy projects in Saudi Arabia to over 10,300MW. Solar PV IPPs account for 79%, or about 8,100MW, of the total capacity.

    Four wind IPPs, one of which has yet to be awarded, account for the remaining capacity.

    SPPC is procuring 30% of the kingdom's target renewable energy by 2030. Saudi sovereign wealth vehicle the Public Investment Fund (PIF) is procuring the rest through the Price Discovery Scheme. The PIF has appointed Acwa Power, which it partly owns, as principal partner for these projects.

    The Saudi Energy Ministry recently said that the kingdom plans to procure 20,000MW of renewable energy capacity annually, starting this year and until 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12768211/main.jpg
    Jennifer Aguinaldo
  • Ashghal tenders sewerage works

    21 October 2024

    Qatar’s Public Works Authority (Ashghal) has issued a tender for the construction of the remaining works for two packages of the Al-Kheesa foul sewer network.

    According to Ashghal's website, the project packages are called C2018/7 and C2017/118.

    It issued the tender on 9 October and expects to receive bids by 10 November. Asghal set the bid bond for the contract at QR1.7m ($467,000).

    MEED understands the project is located in the Al-Wajba area and is expected to be awarded in March 2025.

    It is one of the most recent infrastructure packages tendered by the authority, which oversaw the multibillion-dollar Local Roads and Drainage Programme (LRDP) in the run-up to the state's hosting of the Fifa World Cup in 2022.

    LRDP includes more than 200 road and drainage schemes worth an estimated QR53.2bn ($14.6bn).

    In September, Ashghal issued a tender for the construction of a road network in the Izghawa and Al-Themaid areas in the northwest of Doha.

    The project involves the construction of a single- and dual-carriageway road network in the area. The overall project is being procured in two work packages.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12767589/main1835.jpg
    Jennifer Aguinaldo