Al Yamamah Steel Signs Lucrative Contract for Transmission Towers with Hyundai Engineering
Al Yamamah Steel Industries Company, one of Saudi Arabia's leading steel producers, has announced a major contract with Hyundai Engineering & Construction, a prominent South Korean construction firm. The contract, which is valued at 174.91 million Saudi Riyals (approximately 46.64 million USD), involves the supply of steel towers for a 380 kV ultra-high voltage transmission line project in Saudi Arabia's western region.
This deal underscores the growing role of Al Yamamah Steel in the power transmission sector, as well as the company's ability to partner with international giants like Hyundai Engineering & Construction. The project is of great significance for Saudi Arabia, which is undergoing significant infrastructure development, particularly in the energy sector.
Contract Details and Project Scope
The contract duration is set for one year, with **deliveries scheduled to begin in September 2025. The transmission line project will play a crucial role in enhancing Saudi Arabia's electrical grid, ensuring stable and reliable electricity transmission across the western region, which is vital for the country’s continued industrial growth and urbanization.
The 380 kV ultra-high voltage transmission lines will be key in meeting the increasing energy demands of the region, which is expected to grow rapidly over the coming years. These lines are designed to carry a high amount of power over long distances with minimal loss, making them an essential part of Saudi Arabia's national grid modernization plan.
The steel towers that Al Yamamah Steel will supply will support the entire infrastructure, making this a critical contract in the context of the country’s growing electricity needs. The towers will be fabricated using high-quality steel to ensure durability, strength, and resilience under challenging weather conditions, which are typical in the region.
Impact and Financials
The financial impact of the deal is expected to be reflected in Al Yamamah Steel's financial results for the fourth quarter of 2025, as stated in the company’s official communication to the Saudi Stock Exchange. This timing is important as it will contribute to the company’s revenue growth during the last quarter of the year.
This contract is part of a broader strategy by Al Yamamah Steel to expand its footprint in the energy infrastructure sector, further consolidating its position as a leading supplier of steel towers for transmission lines in Saudi Arabia and the wider Gulf Cooperation Council region.
Al Yamamah Steel’s Growing Role in the Energy Sector
Earlier this month, Al Yamamah Steel secured another major deal, this time with a subsidiary of National Power Construction Corp. This contract, valued at SAR 112.9 million, is for the supply of steel towers for another 380 kV ultra-high voltage line in Saudi Arabia's western region. This expansion into multiple transmission line projects is likely to provide a substantial boost to Al Yamamah Steel’s order book and revenue over the coming years.
These contracts are part of a growing demand for infrastructure development in the Saudi Arabian energy sector, fueled by the country’s ambitious plans to modernize and diversify its electrical grid. With increasing urbanization and the expansion of renewable energy sources, Saudi Arabia’s energy infrastructure needs robust solutions to meet future demands.
Al-Babtain Power and Telecommunication’s Parallel Growth
In parallel to Al Yamamah Steel, Al-Babtain Power and Telecommunication has also secured a significant contract this month from Larsen & Toubro Saudi Arabia. This deal, worth SAR 390 million, involves the supply of overhead transmission line steel towers, further emphasizing the growing demand for steel infrastructure in Saudi Arabia's power sector.
This synergy between companies in the energy infrastructure supply chain highlights the importance of the steel industry in supporting the country’s Vision 2030 goals, which include building sustainable energy systems and strengthening the electrical grid.
Key Takeaways:
• Al Yamamah Steel has signed a contract worth SAR 174.91 million ($46.64 million) with Hyundai Engineering & Construction for the supply of steel towers for a 380 kV ultra-high voltage transmission line in Saudi Arabia.
• The contract duration is one year, with deliveries starting in September 2025.
• This project will enhance the electricity transmission capacity of Saudi Arabia’s western region, supporting the country's energy needs.
• The financial impact of the deal will be reflected in the fourth-quarter results of 2025.
• Earlier this month, Al Yamamah Steel also secured a SAR 112.9 million contract with National Power Construction Corp for a similar project.
• Al-Babtain Power and Telecommunication has secured a SAR 390 million contract for overhead transmission line steel towers from Larsen & Toubro Saudi Arabia.
• The contracts highlight the growing demand for steel infrastructure in Saudi Arabia’s energy sector.
