Rayanco Launches Saudi Arabia’s First EAF Billet Plant

Rayanco’s EAF Billet Plant Marks a Milestone for Saudi Steel Industry

Rayanco, a prominent scrap metal supplier in Saudi Arabia, is building the nation’s first electric arc furnace (EAF) billet plant. Located in the 3rd Industrial Zone of Dammam, this pioneering project represents a bold step toward domestic steel billet production. According to Kallanish, Rayanco has already secured Chinese-made production equipment, and construction is actively underway. The plant is expected to be operational between June and August 2026, pending electricity connection permits.

The plant’s initial capacity will be 150,000 tons per annum (ktpa), with planned expansion to 200 ktpa. This move positions Rayanco as a key player in Saudi Arabia’s steel value chain, reducing reliance on imported billets from the Far East. As regional imports pressure local margins, this investment signals confidence in long-term domestic demand and resilience within the scrap-based steel sector.

Currently, key billet producers in Saudi Arabia include Al Qaryan and Power Steel. However, other Dammam-based players like Reebal and Metal Corner have exited the market due to margin compression from cheap Asian imports. In this context, Rayanco’s decision to invest in local billet production is not only strategic—it’s transformative.

EAF Billet Production in Saudi Arabia Gains Strategic Momentum

The EAF billet plant by Rayanco aligns with a broader regional trend toward industrial self-sufficiency. Industry insiders view the project as ambitious but timely, given global shifts in steel trade flows. “The increase in imports puts significant pressure on local producers,” noted a senior representative from a Saudi mill. Investing in domestic capacity under such conditions demonstrates forward-thinking leadership in a volatile market.

Meanwhile, other players are deepening their footprint in the Gulf. Jindal Saw, a leading Indian pipe manufacturer, has committed $118 million to expand in the Middle East. This includes a new seamless pipe plant in Abu Dhabi and joint ventures in Saudi Arabia via Jindal Saw Holdings FZE. These developments underline the region’s growing attractiveness for value-added steel manufacturing and downstream investment.

For Rayanco, access to scrap metal, proximity to regional markets, and government support for industrial diversification may offer critical advantages. As energy-efficient steelmaking becomes central to future capacity additions, EAF technology positions Rayanco well for both economic and environmental sustainability.

SuperMetalPrice Commentary:

Rayanco’s investment in Saudi Arabia’s first EAF billet plant comes at a pivotal time for the regional steel market. As imports from the Far East disrupt local margins, producers must rethink supply strategies. This facility marks a long-term commitment to domestic production and signals a shift toward vertically integrated scrap-based steelmaking in the GCC. With input costs rising globally, localized EAF capacity could insulate Saudi steelmakers from future volatility. SuperMetalPrice believes this project could catalyze a new phase of industrial competitiveness in the Middle East’s steel sector.