Major Infrastructure Contract Signed

Al Yamamah Steel Industries Co., one of Saudi Arabia’s leading steel manufacturers, has announced a landmark contract valued at SAR 167.64 million ($44.65 million) with Trading & Development Partnership Co. The agreement will see Al Yamamah supply specialized steel towers required for a high-voltage transmission line project in the kingdom’s Western Region.

The project involves the construction of a 380 kV ultra-high voltage line, crucial for enhancing the region’s electricity infrastructure. The announcement was made on May 29 via a filing to the Saudi Exchange (Tadawul), signaling another step forward in the country’s Vision 2030 infrastructure goals.

Deliveries to Commence in August 2025

According to the statement, tower deliveries under the contract will begin in August 2025. The company stated that the contract period is one year, and work will be executed in phases to meet the operational and technical timelines of the project. The ultra-high voltage line is expected to significantly boost grid capacity and efficiency in the Western Region, which includes rapidly growing cities like Jeddah and Makkah.

Al Yamamah Steel will be responsible for manufacturing, quality assurance, and logistics of the towers. The structures will be fabricated to withstand the mechanical and thermal stresses typical of high-voltage energy corridors.

Strategic Importance for National Grid

The 380 kV line forms part of the national plan to expand Saudi Arabia’s electricity transmission infrastructure to meet rising demand. As population centers and industrial hubs grow across the kingdom, enhancing transmission efficiency is becoming critical.

Steel towers are a fundamental component of such projects, providing the structural framework to carry high-voltage conductors safely across long distances. This contract places Al Yamamah at the center of a strategically vital infrastructure upgrade.

Key Takeaways

• Al Yamamah Steel signed a SAR 167.64M ($44.65M) contract to supply towers for a 380 kV power line in Saudi Arabia.

• Deliveries will begin in August 2025, with financial impact reflected by Q4 2025.

• The project supports Saudi Arabia’s grid expansion and industrial localization goals.