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Home > Reports > Annual Report 2022 > Our Businesses > Metals (Hadeed)

METALS (Hadeed)

As the local steel champion, SABIC offers innovative and diverse steel solutions to global markets.

We achieve this through developing our product portfolio, maintaining best-in-class standards in efficiency, reliability, and EHSS, steadily improving our sustainability agenda towards carbon neutrality and energy efficiency, and building a motivated, talented, and resourceful workforce.

Hadeed’s vision is to be the preferred local and regional leader in the steel industry. Saudi Arabia is looking to attract billions of dollars of investment to increase local supplies and reduce imports, and we support the country’s focus on differentiated steel investment. We align with domestic steel strategies set by the Ministry of Industry and other governmental agencies and pursue growth opportunities that reinforce these national initiatives in line with Saudi Vision 2030. We sustain a strong business position with investments in iron-ore mining and a focus on exploring parallel iron-ore supply opportunities to ensure a secure feed-stock supply and support our growth ambitions and competitiveness.


Global supply and demand trends continued to affect both prices and supplies of most common feed-stock. Iron and steel-making at Hadeed have been affected as they are dependent on iron ore as the major feed-stock, and price jumps have hindered its financial performance. Nevertheless, our performance was bolstered by the local steel industry protection programs applied by the Saudi government, allowing us to weather a challenging year.


– Revenue increased by 21% compared to last year actual and 12% higher than plan.

– EBITDA 13% higher than last year with continuous improvement during the last two years.

– Net Income increased by 60% compared to last year, maintaining profitability for the last two years from previous six years of losses.

– Fixed Cash Costs increased by 4% compared to last year with focus on Reliability and Safety improvement programs. Fixed costs per ton decreased by 7% compared to last year mainly due to productivity improvement.

– EBITDA and net Income, five-year outlook to sustain profitability.

Metals (Hadeed) revenues amounted to SAR 15.39 billion, an increase of SAR 2.58 billion or 20% compared to 2021, driven by an increase in sales volumes by 19% and increase in average sales prices by 1%.

Sales volume

Million MT
  • 2022
  • 2021
2022 2021
5.2 4.4

Production volume

Million MT
  • 2022
  • 2021
2022 2021
5.2 4.6


For long products, we developed and commercialized high-strength rebar Grade 80 with different sizes as per SASO ASTM A615 -2021. This product offers many advantages compared to the conventional grade 60 used in construction in terms of properties and sustainability. Additionally, we are developing rebar size 36mm Gr. B500B as per BS4449 to fulfill the local and international market requirements for weldable deformed rebar.

For flat products, we are commercializing the Hot Rolled Coil Grade 60 in accordance with EN 10025. The newly developed grade will help fulfill customer requirements for high-strength tubes and C-sections used in solar applications.

In the field of cybersecurity, Hadeed achieved Level 3 maturity in the Cyber Security Rate set by SABIC.


– Build up logistics transportation fleet capability through addressing the challenges and needs via 41 engagement sessions with our transporter companies, efforts translated into new dispatch records: weekly 157.5 KMT, monthly 577 KMT.

– 458 KT overseas shipments via 15 vessels spread to eight different countries globally with 12% increase YoY.


– SPLP1 modified Electric Arc Furnace melting profile parameters and using Tap 9 in operation, which decreased power on time per heat by 1.8 minutes, which increased plant productivity by 5,500 tons/month.

– SPLP1 achieved alloys consumption by 0.2 kg/ton, which resulted in a cost saving of SAR 230,000 per month.


– Electric Arc Furnace operated with low scrap weight, which contributed a saving of SAR 36 million.

– Produced Shroud grades successfully for exports with vanadium alloy addition.

– Implemented the new chemistry for Grade 2300 with minimized quantity of Silicon and manganese alloys, which contributed a saving of SAR 11/T.

– Successfully completed the trial of spent catalyst material as an alternative for flux material by aligning with the SABIC technology team.

– Completed medium carbon grades trial successfully (AISI 1040 and 1045) with nitrogen-shrouding technology.

– Successful completion of a trial for ladle slide gate plate and exchangeable nozzle with 03 life against the base case of 02 heats.

– Ladle Furnace energy consumption achieved below the plan by 2.3 kwh/T, which contributed savings of SAR 0.30 million.


– Successfully exported 200,841 tons (8,676 slabs) for five different customers.

With our expertise in the iron and steel-making process, Hadeed supported Saudi Aramco in the development of its plate mill project jointly owned by an international partner.


– Ferrous metallic recovery started by processing slag within Hadeed.

– Caster scrap billet manual cutting upgraded by introducing automatic billet cutting through a new service contractor, GMMS.

– Scrap Handling Services switched a new service contract at a low price, resulting in a cost saving of SAR 3 million.

– The refractory section upgraded the chiller water plants to enhance refractory monolithic mixing quality.

– Three new basket carriers were deployed for operation.

– Received coke and mixed it with carbon to reduce the impact of consumption resulting in a saving of SAR 800,000.

– Received 177 tons of coke material at site from Petrokemya and United to be recycled and used with anthracite to increase metallization of carbon with a cost benefit impact of around SAR 1.2 million.

– Utilized broken electrode as door bay and machined it again as electrode resulting in a saving of SAR 3 million.

– Reduced cost of containers from US$ 3 million to US$ 27,000

As the local steel champion, we offer innovative and diverse steel solutions.


We will sustain our position as a local steel champion and will provide our customers optimum quality, innovative, and diverse steel solutions through our talented employees. At the same time, we will maintain the best-in-class EHSS and Reliability standards to maximize the value for our stakeholders and enable Saudi Vision 2030.

We will also strive to stretch our production capacities targeting 6.12 million tons annually (presently, 5.8 million tons). We will focus on delivering differentiated products to the market to leverage increasing demands of long product’s high carbon, Grade 80, and flat product’s API (American Petrochemical Institute) sour grade, which is a pipe-manufacturing standard.

Our future growth will depend on maximizing business profitability by sustaining an important position at upstream iron-ore mining investment to secure our feed-stock of high-grade Direct Reduction pellets. In addition, we plan to grow by an additional 1.0 million tons by way of new organic investments in thin hot rolled flat steel production, which will also help in fulfilling the objectives of Saudi Vision 2030.

Our priority focus areas will be:

– Transform to improve Business, Operation and People Competency.

– Growth in upstream iron-ore mining.

– Dedicate downstream growth for thin gauges at flat products.

– Sustain 10% EBITDA innovation contribution by offering more differentiated value-added products.

– Remain committed to sustainability to meet carbon-neutrality targets by 2050.

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