United Steel to develop Bahrain steel plant

Bahrain: United Steel Company (SULB) is set to develop a $1.2 billion steel manufacturing plant, which once operational, will be the region's first fully integrated beams and structural sections producer.

United Steel is a joint venture between Gulf United Steel Holding Company (Foulath), a leading steel investment vehicle based in Bahrain and Japan's Yamato Kogyo Company, a leading global beams and structural sections producer.

The company on Tuesday awarded engineering procurement and construction contracts for the massive plant to two consortiums-one comprising Kobe Steel of Japan and Midrex of the US and the other having SMS Meer and SMS Concast of Germany and Samsung Engineering on board. The construction will begin in the second half of 2010.

Kobe Steel/Midrex will undertake the construction of the DRI plant while SMS Meer, SMS Concast and Samsung will jointly develop the MS and HSM facilities.

According to SULB chief, the plant will begin commercial operations and the production of medium and heavy beams and structural sections by the second half of 2012.

It will be situated adjacent to Gulf Industrial Investment Company's (GIIC) pelletizing plants and United Stainless Steel Company’s cold rolled stainless steel mill, both wholly owned subsidiaries of Foulath.