Italian foundry equipment maker Danieli has won a contract worth $213 million (Ôé¼150 million) to build a steel plant in Jeddah, Saudi Arabia.
Danieli signed the deal to build the steel plant for Al-Rajhi Steel, one of Saudi Arabia's top three steel companies, on Thursday.
The plant, which will manufacture reinforcement steel rebars, is expected to have an output of one million tones per year when completed, the company said.
The plant will be located in the port city of Jeddah, on the Red Sea.
Construction is estimated to last around 22 months, with production expected to begin in November 2011.
In June, Al-Rajhi Steel signed a contract to supply steel rebars for the $6 billion Haramain high-speed rail link between Mecca and Medina.
The railway, due to be completed by 2013, is expected to provide a huge boost to Saudi ArabiaÔÇÖs tourism infrastructure by linking the country's airports and ports in Jeddah to the two holy cities of Mecca and Medina.
It will also hoped the railway will alleviate traffic congestion on the roads between the two cities.
Al-Rajhi SteelÔÇÖs contract was the railway projectÔÇÖs first construction contract to be awarded.
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