Slovenian steel producer SIJ Group has signed an agreement with the Saudi Arabian government to establish the electrical steel production facility in Ras Al-Khair, a fast-growing industrial hub in southeastern Saudi Arabia.
This memorandum marks the first step in a mid-term process, with production expected to begin by 2029. The initial investment and most of the construction will be funded by Saudi Arabia as part of a joint venture aligned with its Vision 2030 to diversify the economy.
Amid challenging conditions in the European market, SIJ Group has been seeking opportunities to expand in the Middle East, where long-term growth prospects and favorable business conditions are present. The new venture will focus on producing high-demand electrical steel for electric vehicles, supporting the Slovenian automotive supply industry’s efforts for geostrategic diversification in the region.
