Al Yamamah Steel Industries Co. has signed a key agreement with Saudi Arabia’s Local Content and Government Procurement Authority (LCGPA) to manufacture steel towers for wind turbines, marking a major step in the Kingdom’s effort to localise renewable energy production and reduce dependency on imported infrastructure.
The deal, signed in collaboration with Arabian International Co. for Steel Structures, positions Al Yamamah at the forefront of Saudi Arabia’s strategy to become a regional leader in wind energy equipment manufacturing.
The agreements were signed at the Energy Localisation Forum in Riyadh, where 107 deals and memorandums of understanding were inked with an estimated investment value of SR104 billion ($27.69 billion).
The initiatives align with Saudi Arabia’s National Renewable Energy Program and Vision 2030, which aim to diversify the energy sector, enhance economic sustainability, and establish the Kingdom as a competitive player in the global renewable energy sector.
Al Yamamah’s role in this partnership highlights its strategic pivot toward the renewable energy sector, underscoring the Kingdom’s commitment to build a local supply chain, foster knowledge transfer, and create new employment opportunities in clean energy manufacturing.
According to the LCGPA, the localization and knowledge transfer agreements will establish new industries in Saudi Arabia and create diverse job opportunities within the energy sector.
This effort is designed to enhance local content and increase reliance on domestic products and services, thereby boosting the Kingdom’s competitiveness in regional and global markets.
Abdulrahman bin Abdullah Al-Semari, CEO of the LCGPA, emphasized that the agreements will significantly localize the production of steel towers for wind energy systems.
He underlined that this initiative is expected to contribute approximately SR1.1 billion to the country’s gross domestic product while strengthening local supply chains in the renewable energy sector. Additionally, localizing the wind tower industry is projected to create over 500 new jobs.
Recently, Al Yamamah Steel Industries Co. secured two major contracts worth a combined SAR 309.25 million ($82.4 million) from Indian multinational engineering firm Larsen & Toubro (L&T), the steel manufacturer announced in a statement.
The contracts involve the supply of steel towers for two ultra-high-voltage transmission line projects as part of Saudi Arabia’s ambitious grid expansion.
The first contract, valued at SAR 170.54 million, involves the supply of steel towers for the construction of a 500kV ultra-high-voltage line connecting the Central region to the Western region of Saudi Arabia.
The project is a key component in enhancing the country’s transmission infrastructure, enabling the movement of electricity across vast distances to meet growing demand, particularly in the industrial and residential sectors.
The second contract, valued at SAR 138.72 million, focuses on supplying steel towers for a 380kV ultra-high-voltage line between the Stara station and Wadi Aldawasir station in the Central region.
This project is also a key infrastructure upgrade aimed at improving power reliability and distribution efficiency within the Kingdom.
The contracts are part of Saudi Arabia’s broader effort to expand its transmission grid and support its rapidly growing energy needs, particularly as it invests heavily in renewable energy projects.
