MANAMA: Bahrain's Nass Contracting was yesterday appointed to execute a civil integration package for the $1.2 billion United Steel Company (SULB) integrated steel plant in Bahrain. The 1.3 million square metre state-of-the-art steel production complex is located in Hidd industrial area.

It is being set up in collaboration with Japan's Yamato Kogyo Company, a leading global steel section producer, which also owns 49 per cent of the company.

SULB chairman and managing director Khalid Al Qadeeri said the awarding of the contract was another major milestone in the implementation of the prestigious project, which is being developed by world-class engineering and construction companies.

"Nass has a strong track record of work with some of the region's largest industrial projects and we welcome them on board," he said during a Press conference at the Ritz-Carlton Bahrain, Hotel and Spa.

"Work is well underway at the site and we are on schedule to begin commercial operations by the second half of next year."

He said the plant is a ground-breaking project for the Middle East's steel industry.

"It aims to create the world's first fully integrated steel production facility with manufacturing capability extending from iron ore pelletising to final steel products, which will not only be of the highest standard and quality, but also the most competitive in terms of cost."

The plant comprises a direct reduced iron plant (DRI Plant) with nameplate capacity of 1.5m tonnes per year (mtpy) and design capacity of 1.8 mtpy, a melt shop with nameplate capacity of 0.80 mtpy and design capacity of 1.2 mtpy, and a heavy section rolling mill with nameplate capacity of 0.60 mtpy and design capacity of 1mtpy.

"SULB will also be the Middle East's first fully integrated medium and heavy beams and structural steel sections producer and is expected to replace approximately 20pc of the annual 4m tonne imports of these products into the region once fully operational."

Work included in the package encompasses the construction of roads and pavements, lighting, storm water drainage, sewage treatment and potable water systems, gates and weigh bridges and non-process buildings, he said.

The steel complex also consists of Gulf Industrial Investment Company's pelletising plants and United Stainless Steel Company's cold rolled stainless steel mill, both wholly owned subsidiaries of Foulath, which together with SULB, allow the company to operate across the entire steel value chain from iron ore to final product.

Yamato Kogyo Company president Hiroyuki Inoue, Nass Corporation chairman Abdulla Ahmed Nass, vice-chairman and managing director Sameer Nass and general manager David Antony were also present.

Mr Al Qadeeri thanked the Bahrain government for its continued support for Foulath and its associated companies.

"Not only will SULB help lessen regional import requirements for medium and heavy steel sections into the Middle East markets, it will also make a significant socio-economic contribution to Bahrain, where we expect to employ approximately 1,000 people, with a target of 70pc Bahraini nationals."

Source: Gulf Daily News