United Steel Co plans capacity expansion

United Steel Company plans to increase its melting and direct reduced iron capacity as well as install a rebar mill in the second phase of expansion at its new steelworks in the north eastern region of Al Hidd.

Currently under construction, the works comprises 1.5 million tonnes per year capacity DRI plant, 1 million tonne per year melt shop and 600,000 tonne per year heavy sections mill that will produce medium to large H-beams. SULB expects to begin hot commissioning of the melt shop in September, while the DRI plant should come online in January 2013.

In order to capitalize on burgeoning rebar consumption in neighboring Saudi Arabia and to supply other Gulf Cooperation Council nations, the company intends to install a bar mill at a later stage, a SULB official tells Steel Business Briefing. The rebar mill, which is set to have a minimum capacity of 500,000 tonnes per tonne year would be complemented by a new DRI plant and melt shop. SULB is currently in talks with equipment suppliers and has not yet decided on commissioning dates.

SULB is a 51%:49% JV between Kuwaiti holding company Foulath and Japanese sections producer Yamato Kogyo. In 2011, it acquired Saudi Arabian section mill United Gulf Steel Mill which has 450,000 tonne per year capacity. The Bahraini works is adjacent to Gulf Industrial Investment Co’s 11 million tonne per year iron ore pelletizing plant which is part of Foulath's parent company Gulf Investment Corporation.