Saudi Arabia's Al Yamamah Steel Industries Company recently announced a substantial contract with Indian engineering and construction giant Larsen & Toubro worth 138.7 million Saudi riyals, approximately $37 million. The contract involves the supply of steel towers for the construction of a 380 kV ultra-high-voltage transmission line connecting the Stara station to the Wadi Aldawasir station in the central region of the country. This project marks a significant step in enhancing the region’s power infrastructure.
The contract is set to commence in January 2025, with a planned completion timeframe of one year. This timeline reflects a growing urgency to upgrade and expand the power transmission capabilities in Saudi Arabia, as the country continues to invest heavily in its infrastructure to support economic growth and diversification.
Al Yamamah Steel, known for its high-quality steel products, is positioned to play a vital role in this project. The company’s reputation for delivering reliable and durable materials is expected to contribute significantly to the project's success. The new transmission line will facilitate improved electricity distribution, supporting both residential and industrial needs in the region.
The financial implications of this contract are noteworthy, as Al Yamamah Steel anticipates that the revenue from this deal will begin to be reflected in its financial statements in the second quarter of the fiscal year 2025. This influx of funds is likely to bolster the company’s growth trajectory and enhance its position in the competitive steel market.
L&T’s Saudi unit is engaged in several large-scale projects aimed at modernizing the country’s infrastructure. The partnership with Al Yamamah Steel underscores the collaborative efforts between local and international firms to achieve shared goals in infrastructure development. This contract exemplifies how strategic alliances can lead to successful project outcomes in the energy sector.
