Al Rajhi Steel, one of Saudi Arabia's three largest steel companies, has awarded an order worth Dh785 million ($213.3 million) to Italian foundry equipment maker Danieli to build 1 million tonne per year capacity steel rebar plant.

Under the arrangement, Danieli will build a steel plant in Saudi Arabia. The plant, which will be located in the Red Sea port city of Jeddah, is expected to start production in November, 2011.

According to a company official, the upcoming plant may take 22 months of time frame to complete the construction.

Al Rajhi Steel Industries, which was established in 1984, produces commercial and reinforcement steel.