Structural Steel Mill Upgrade Feasibility Study, Focusing in KSA and UAE

The sections demand in the Saudi Arabia is expected to grow at a healthy growth rate of 15% between 2022 and 2034. The demand is primarily driven by Giga projects developments

Each module of “The Line” measures 800 meters in length and 500 meters in height. The estimated Jumbo steel needed for each module ranges from approximately 1.75 million tons. A total of 135 modules are to be constructed as part of “The Line” project

Around 30% of the steel utilized in Saudi Arabia is expected to be high specific weight steel, with a weight exceeding 500 kg/m

High specific weight (HSW) steel is a more sustainable material choice than traditional steel. It can save material, energy, and resources, and it can help to reduce greenhouse gas emissions

In 2022, the overall market for steel sections in the GCC region reached a total of 1,596 thousand tons. Saudi Arabia emerged as the dominant market, representing 58% of the total sales, while the UAE followed closely, accounting for 32% of the sales

Table of Content:

Market Assessment

Understanding the Client’s objectives: Obtain a detailed briefing from the Client on the envisaged study; Identify key stakeholders in the Project Have a clear view of the Client’s expectations; and Develop the project charter, which outlines the dates, tasks and responsibilities of GRC team members as well the Client responsibilities.

Macroeconomic and construction market analysis (UAE, KSA)Economic growth analysis on KSA, UAE Population and employment growth; Urbanization rate and outlook; Construction market overview; and Key drivers of construction sector

Jumbo steel beam demand analysis (volume and value)Demand by country KSA; UAE; Demand by segment Commercial; Industrial; and Supply analysis Key manufacturers of Jumbo Steel Beams by country — KSA, UAE Total domestic production capacity; and Share of imports (if any) and key partners (countries) for trade Market trend analysis Key demand drivers; Market restraints; and Operational, product, and customer trends. Competitive landscape (UAE & KSA)Market share analysis; Market concentration level; Company profile for top 3 manufacturers; Overview; Plant location; Production capacity; and Financials (if available).Pricing analysis (KSA, UAE)Pricing strategies of key players in the sector; Pricing trend analysis; and Key factors impacting the pricing. Profitability analysis Gross and EBIT margin of the industry; Margin trends; and Factors impacting the margins.

Technical Assessment

Technical Analysis: *Pre-operating expenses; Initial and ongoing CAPEX requirements; Review of post-operational OPEX; Broader supply chain capabilities (e.g. raw materials procurement, warehouse, logistics)Understanding of regulatory requirements (process, cost, and timeline of obtaining approvals);Benefits of pre-existing facilities (if applicable);Manufacturing/office Facility details (incl. a high high-level proposed plot layout, plot/land area, building area in sqm);Plant, equipment, and machinery details (e.g. provide name & type of equipment, number of units and price per unit);Detailed schedule (list, quantity, price) of capital investments e.g. equipment, machinery, etc.; Sourcing of assets (e.g. name of supplier, country of origin, name of brand, etc.);Phasing / deployment of assets; IP/technology used to provide the service; Details of the output — product description, quantity, adherence to standards, etc.; Capacity utilization and assumptions over the period of financial projections; Details of inputs into the manufacturing/service process e.g. raw material description, quantities & unit costs; Details of all the conversion requirements (e. g. identify the utilities required for the proposed Project, utilities consumption rates and quantities); and Standards/certifications/accreditations–ISO, equipment maintenance, etc.

Financial Analysis

Based on discussion with the Client, we will: Identify the sources of revenue and finalize revenue assumptions; Identify assumptions related to the cost of sales and operating expenses; and Finalize the assumptions for working capital requirements.

Agree with the Client on the capital structure and financing tools to be incorporated into the financial projections;

Provide non-technical inputs in the development of assumptions underlying the Project;

Build financial projections for a period of up to 10 years. This will include P&L statement, cash flows statement, and balance sheet;

Document the Project evaluation indicators that will be generated based on the financial projections, including internal rate of return and the payback period;

Analyze the results of the financial projections and discuss modifications in assumptions with the Client, as appropriate.

Opportunity Assessment

Contact Us

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Website : https://www.glasgowinsights.com

STRUCTURAL STEEL MILL UPGRADE FEASIBILITY STUDY, FOCUSING IN KSA AND UAE