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Saudi Sabic affiliates scrap project in Jubail Industrial City

Plans to build a steel plant in Jubail Industrial City have been called off by two affiliates of Saudi Basic Industries Corp (Sabic) after feasibility studies were "not encouraging," Reuters has reported. Saudi Arabian Fertilisers Co (Safco), which is 42.9% owned by Sabic, and the chemical maker's steel unit Hadeed agreed in 2008 to build the Jubail steel plant with an annual capacity of 1.7m metric tonnes. Safco said it will instead study the potential for a 1 million tonne urea factory in Jubail with the aim of starting production by the second half of 2013.