Tel :
Tel :
Rayanco, a leading Saudi Arabian scrap steel trader, plans to build an electric arc furnace (EAF) billet production facility in Dammam, on the Persian Gulf coast. NK K/63N steel Expected to begin operations in 2026, this will mark a significant turning point in the company's development.
The project, located in Dammam's Third Industrial City, has an initial designed production capacity of 150,000 tons/year, with plans to rapidly expand to 200,000 tons/year upon commissioning. Saudi steel company sources revealed that the project, which has been widely rumored within the industry, has entered the substantial development phase, but construction will still require at least a year before it begins production.
Rayanco has long been renowned for its scrap steel recycling, processing, and trading. It processes approximately 500,000 tons of scrap steel annually and supplies over 20 steel mills in Saudi Arabia, making it one of the country's largest suppliers of scrap steel. NK K/63N steel Industry insiders believe that Rayanco's entry into the steelmaking sector will promote the upgrading of scrap steel's role within Saudi Arabia's steel industry from raw material to finished product, helping to boost domestic production and reduce reliance on imports.
This expansion comes at a time when Saudi Arabia's induction furnace (IF) steelmaking faces an uncertain future. Industry insiders are concerned about safety and quality risks in some IF furnaces. Currently, Saudi Arabia has approximately 40 IF furnaces with a total annual production capacity of approximately 4 million tons. However, due to frequent new construction and closures, operating numbers fluctuate significantly. Industry insiders predict that as policies and market preferences shift, some capacity may shift to EAF technology in the coming years.
As the largest steel producer in the Gulf Cooperation Council (GCC), Saudi Arabia boasts an annual crude steel production capacity of approximately 16 million tons. NK K/63N steel Driven by mega-projects such as the NEOM smart city, the Mukaab Cube skyscraper complex in Riyadh, and the Red Sea Project, domestic steel demand is expected to continue to rise over the next five years, providing ample market space for Rayanco's new projects.
