A Saudi company is to run a $100 million plant in the eastern city of Dammam for the manufacture of oil and gas pipelines, the promoters of the project said Sunday, june 17.
Mohammad al-Hammadi, vice president of the Saudi firm Aziz Corp. Ltd., told AFP that the contract to build the plant went to a European firm, which he declined to name.
"The European firm will start the construction in two months and the factory will be operational in a year," he said.
"We are in the process of securing a loan from the Saudi Industrial Development Fund to cover 50 percent of the project and are counting on local banks to finance the rest," said Hammadi.
The output of 150 million tons of pipelines will be destined for the local market, other Gulf states and Asia, he said.
Hammadi said his 40-year-old company had won contracts worth a total of 1.7 billion rials ($452 million) to build or modernize desalination plants in the desert kingdom.
On June 3, Saudi Arabia signed preparatory accords with eight oil majors for three massive gas projects. — (AFP)
© Agence France Presse
© 2001 Mena Report (www.menareport.com)