Saudi Arabia’s Al Yamamah Steel Industries Co (TADAWUL:1304) has officially commenced commercial operations at its new wind energy systems factory in Yanbu Industrial City.

The facility, inaugurated under the patronage of the Minister of Energy, Abdulaziz bin Salman, marks a significant milestone in the Kingdom’s efforts to expand its renewable energy supply chain.

Al Yamamah Steel reported that the factory has an annual production capacity of 50,000 tonnes of steel towers, designed to meet the latest wind turbine specifications.

The steel towers produced at the plant will stand over 130 metres tall and measure up to six metres in diameter, accommodating advanced wind turbine models.

Supported and supervised by the Ministry of Energy, the project aligns with Saudi Arabia’s strategy to bolster local manufacturing for clean energy initiatives.

In July, Al Yamamah signed two contracts to supply wind towers to SEPCOIII Electric Power Construction Co Ltd projects.

The first contract, valued at SAR 35.7 million (USD 9.5 million/EUR 8.2 million), is for the Al Ghat wind farm. The second, worth SAR 33 million, covers the Waad Al-Shamal wind farm.

These agreements demonstrate the Kingdom’s commitment to developing a domestic renewable energy industry while attracting foreign investment in large-scale infrastructure projects.

The factory’s operations support Saudi Vision 2030, which aims for 50% of electricity generation to come from clean energy sources by the end of the decade.

Energy experts say that localising the production of wind towers not only reduces project costs but also strengthens Saudi Arabia’s industrial capabilities and technological expertise in renewable energy.

Al Yamamah Steel’s Yanbu plant represents a key step toward creating a sustainable energy ecosystem within the Kingdom, with broader implications for economic diversification and environmental goals.

Officials highlighted that the project contributes to job creation in the industrial sector and supports the Kingdom’s broader transition towards a low-carbon economy.

As Saudi Arabia continues to push for renewable energy adoption, the wind tower factory is expected to play a pivotal role in meeting domestic demand and enhancing regional energy security.

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members