The world's largest steelmaker Luxembourg-based ArcelorMittal has announced today that it has signed a memorandum of understanding to establish a joint venture with Turkish partner Dayen to build a steel mini-mill with electric furnace in Sulaimaniyah in northern Iraq.
The mill will produce in its initial phase up to 250,000 metric tons of rebars per year from locally sourced scrap and will require an investment of $100-130 million, jointly subscribed by ArcelorMittal and Dayen.
Construction of the plant in question is planned to start in the second quarter of 2010 and production is planned to commence early in the last quarter of 2011. Production could eventually increase to 500,000 metric tons per year.
"There are many opportunities for ArcelorMittal to assist in the development of the country," said Christophe Cornier, member of ArcelorMittal's group management board. "There is great demand for steel products for the local construction industry, which we aim to meet, working closely with our partner Dayen and the local government in northern Iraq."