Vítkovice Machinery Group will supply a steel mill to Saudi Arabia. The contract value will exceed five billion crowns
Vítkovice Machinery Group (VMG) on Monday (20. 6.) signed a contract for the so-called basic design, ie a technological solution for a steel mill of a metallurgical plant in Saudi Arabia. The Vítkovice engineering group will be responsible for the supply of a complete new steel mill, including a secondary technology and a facility for the continuous steel casting. The total value of the project is $ 1.2 billion and for Vitkovice it means at this moment about 5.5 billion crowns. The contract may still be increased by additional 3.5 billion crowns.
"It is a huge project, and perhaps the greatest involvement of a Czech engineering company in building up new production capacities in Saudi Arabia," said Jan Svetlik, principal owner of VMG. The hot rolling mill and cold drawing mill for the same project will be supplied by German SMS Group. The Saudi Arabian partner will provide construction works. Another company BAT Engineering, as well a part of VMG, will act as EPCM contractor.
The VÍTKOVICE group has been interested in the Saudi Arabian market for a long time. For five years the group has aimed to construct a steel mill. Now it was successful. The contract will be ensured by the company Vítkovice Heavy Machinery. It is a traditional supplier of technologies for metallurgy, renewable energy, cement plants, shipping and manufacturing.
The company can, however, boast of contracts in new areas, such as supplies of parts of particle accelerator for Spojený ústav jaderných výzkumů, known as "Russian CERN", or work on a strategic ship lift for Germany, where VMG won a contract against a rival consortium of German suppliers last year.