Dubai Investments Industries (DII), a wholly owned subsidiary of Dubai Investments PJSC, has announced the acquisition of a ten percent stake in Saudi Arabia-located steelmaker South Steel Company for the purpose of strengthening its strategic expansion in the Middle East.
South Steel Company, which is currently being built on the back of a $350 million investment and is foreseen to become one of the largest steel plants in the Gulf region, is slated to commence commercial operations from December 2010.
The plant, with an initial annual production capacity of one million mt, is being supplied by Germany-based plantmaker SMS Group and will manufacture premium steel billets and rebars in accordance with international standards.
South Steel Company production billets will be consumed entirely within the Kingdom of Saudi Arabia and the Gulf region, whereas 15 percent of the total rebar output will be exported to Yemen and Sudan, with the rest consumed domestically.
The plant is planned to reach full capacity utilization within five years.