Al-Yamamah Company for Reinforcing Steel Bars, a subsidiary of Saudi Arabia’s Al Yamamah Steel Industries, has signed a contract with Italy’s Danieli to build a steel billet production plant. According to the announcement submitted to the Saudi stock exchange, Tadawul, the contract is valued at SAR 270 million. 

Under the agreement, Danieli will be responsible for the engineering design, manufacturing, supply and installation of billet production equipment for the plant. The project is expected to be completed within two and a half years, with operations planned to start in 2029. 

Al Yamamah Steel Industries said the financial impact of the investment is expected to begin appearing from the second half of 2028.

In addition, Al Yamamah’s subsidiary has also received approval to issue 25 million new shares to increase its capital. The proceeds will be used to strengthen the company's financial position and support the second phase of the steel plant project.