Turkiye’s Tosyali plans $5bn Saudi steel plant

Turkiye’s Tosyali plans $5bn Saudi steel plant

Tosyali will build a new steel factory in Saudi Arabia as officials in Riyadh look to diversify the economy away from oil and gas

Turkish steelmaker Tosyali Holding will reportedly invest up to $5bn in a new steel plant in Saudi Arabia.“Our aim is to make the best quality steel from the best technology in a sustainable, efficient and carbon-neutral way,” the company’s chairman Fuat Tosyali told Bloomberg on the sidelines of the World Economic Forum on 17 January.The company intends to produce steel with the help of green energy sources. For that to happen, the company said it will increase its solar energy output by tenfold to 2,500MW, up from the 240MW it currently uses. Tosyali’s chairman noted that the transition will happen through a $1.5bn investment, as well as plans to buy a stake in a hydrogen energy company, without disclosing further details.News about the investment comes against the backdrop of an expansion spree, which has seen the company launch projects in Algeria, Angola, Senegal and Spain. Saudi Arabia is a leading steel producer in the Middle East and North Africa Region, with an annual production capacity of over 10 million tonnes, according to equity management tools platform Rasmal.Government officials in Riyadh have pushed to transition to an economy less reliant on fossil fuels. For instance, in October 2023, Saudi Arabia launched the Neom Investment Fund. The fund serves as