Al Yamamah Steel Industries Expands Reach with SAR 112.9 Million Contract for 380 kV Transmission Line
Al Yamamah Steel Industries Company, a prominent player in the Saudi steel sector, has signed a significant contract valued at SAR 112.9 million (approximately $30.13 million). The deal, inked with a branch of the National Power Construction Corporation, is aimed at supplying steel towers for the construction of a 380 kV ultra-high voltage transmission line in Saudi Arabia’s Western region.
This agreement marks an important step in the company’s ongoing expansion within the region’s infrastructure development. The steel towers will be integral to the high-voltage transmission network, which plays a crucial role in meeting the growing demand for electricity in Saudi Arabia’s rapidly developing sectors.
Key Details of the Deal
Al Yamamah Steel is set to start delivering the steel towers from July 2025. The one-year contract will have a significant impact on the company's business, and the financial results from this project are expected to be reflected in Al Yamamah Steel's financial statements starting from the fourth quarter of 2025. The contract is part of a broader initiative to support the growth of Saudi Arabia's energy infrastructure, which includes upgrades to existing power transmission lines and the establishment of new ones.
The agreement underscores Al Yamamah Steel's position as a key supplier for critical infrastructure projects, particularly in the energy sector. As one of the leading steel manufacturers in the Kingdom, the company’s involvement in such high-profile projects strengthens its role in the development of Saudi Arabia’s electrical grid, which is essential for powering the nation's ongoing growth and modernization efforts.
Expanding Presence in Saudi Arabia’s Power Sector
Al Yamamah Steel’s success in securing this contract follows another notable deal signed in the previous month. In January 2025, the company entered into a SAR 97.55 million contract with Trading & Development Partnership, another major player in the energy infrastructure space. This contract, focused on supplying steel towers for the construction of a 380 kV high-voltage transmission line in Saudi Arabia’s Eastern region, further cements the company’s growing influence in the power sector.
These contracts come as part of Saudi Arabia’s broader push to enhance its power transmission infrastructure as the nation continues to invest in energy diversification and modern technological advancements. The demand for reliable and efficient power transmission lines has never been greater, given the rapid urbanization and industrial expansion occurring across the country.
The Role of Steel Towers in Power Transmission
Steel towers are essential components of power transmission lines, acting as structural supports for the high-voltage cables that carry electricity over long distances. The 380 kV ultra-high voltage lines being developed in both the Eastern and Western regions of Saudi Arabia will play a pivotal role in stabilizing the country’s electrical grid, improving transmission efficiency, and ensuring a steady supply of electricity to urban, industrial, and rural areas alike.
The towers supplied by Al Yamamah Steel will need to meet stringent quality and safety standards to ensure their durability and performance in the harsh environmental conditions of the region. The company’s expertise in manufacturing steel products for high-demand sectors like power infrastructure positions it as an ideal partner for these ambitious projects.
Strategic Importance of the Contract
The deal with the National Power Construction Corporation and the Trading & Development Partnership not only highlights Al Yamamah Steel’s key role in Saudi Arabia’s infrastructure growth but also emphasizes the importance of the company in the context of Vision 2030, the Kingdom’s roadmap for economic diversification. As part of the Vision, the government aims to develop sustainable and reliable energy systems to meet future needs while reducing the nation’s dependence on oil revenue.
The supply of steel towers for the ultra-high voltage lines aligns with the country’s ambitions to modernize and expand its energy infrastructure, facilitating greater energy security and supporting industries reliant on steady power supplies. For Al Yamamah Steel, these contracts represent long-term opportunities and the potential for further involvement in Saudi Arabia's ongoing transformation.
Key Takeaways:
• Contract Value: Al Yamamah Steel has signed a SAR 112.9 million ($30.13 million) contract to supply steel towers for a 380 kV ultra-high voltage transmission line in Saudi Arabia’s Western region.
• Timeline: The steel tower deliveries will begin in July 2025, with the one-year contract set to impact the company’s financials from Q4 2025.
• Strategic Importance: This deal supports Saudi Arabia’s push to upgrade and expand its electrical transmission infrastructure, vital for the country’s economic growth.
• Previous Contract: Al Yamamah Steel had signed another contract in January 2025 for a similar project in Saudi Arabia’s Eastern region, valued at SAR 97.55 million.
• Steel Towers for Power Lines: The 380 kV lines will enhance the Kingdom’s power grid, enabling more efficient electricity transmission across regions.
• Industry Expertise: Al Yamamah Steel’s experience in producing high-quality steel products makes it a key supplier for the energy sector’s infrastructure projects.
• Vision 2030 Alignment: The contracts align with Saudi Arabia’s Vision 2030, which emphasizes infrastructure development and energy diversification.
• Growth Prospects: These contracts represent significant business opportunities for Al Yamamah Steel, further cementing its role in Saudi Arabia’s ongoing development.
