ABB to Supply Automation Equipment for ArcelorMittal's Seamless-Tube Manufacturing Plant in Saudi Arabia

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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading global engineering equipment manufacturer ABB Limited (NYSE:ABB) (Zurich, Switzerland) has secured a contract to supply electrical and automation equipment and allied services for a new seamless-tube manufacturing unit being developed by ArcelorMittal (NYSE:MT) (Luxembourg) and Bin Jarallah Group (BJG) (Riyadh, Saudi Arabia).

As part of the agreement, ABB will supply electrical equipment, including motors, low-voltage switchgear, variable-speed drives and 115-kilovolt (kV) gas-insulated switchgear substation equipment. ABB will also provide automation and control systems based on its 800XA Extended Automation System technology. This system will be used for production scheduling, quality control, production and order management, inventory tracking and reporting, and related activities. ABB will also undertake engineering, procurement, installation and delivery of equipment.

The facility will be constructed and operated as a 51:49 joint venture between ArcelorMittal Jubail Tubular Products (Jubail, Saudi Arabia) and BJG. The state-of-the-art complex will be located at Jubail Industrial City, 150 kilometers from Jeddah. Construction is likely to be completed in 2010. On commencing operations, about 66% of the total capacity of 600,000 tons per year will be utilized for the production of Oil Country Tubular Goods seamless tubes. The remainder will be allocated for manufacture of pipes with diameters of 4 to 14 inches. Seamless tubes are used in applications that require high tenacity, strength and longer plant life.

Established in 1976, BJG focuses on construction of roads and highways, sewage and water treatment plants, general contracting, industrial, electrical and mechanical works, and operations and maintenance projects. Some of the group's ongoing projects include the water and sewage treatment plants at Riyadh and Dawadmi, the water distribution and network schemes at Baljurashi, Gizan and Abha, and a road-construction project at Al Baha.

In a related development, ABB also secured a $48 million contract from SEPCO III Electric Power Construction Corporation (Shandong, China) to supply gas-insulated switchgear equipment, telecommunications, control and electrical systems, and circuit breakers for the 120-megawatt Rabigh power project. The gas-insulated substation will transmit electricity from the power plant, located 150 kilometers from Jeddah. Rabigh is the first independent power plant to be built with private sector participation on a build-operate-own model. Construction of the power plant is scheduled for completion in 2011.

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