Emirates Steel Industries (ESI), the largest integrated steel producer in the UAE, has increased its annual direct reduced iron (DRI) production capacity to 3.2 million mt and its annual steelmaking capacity to 2.8 million mt, by commissioning Phase 2A of its expansion program, 33 months after the launch of construction. Phase 2B will be commissioned by the end of the current year, the steelmaker announced on April 17.
In January 2006, ESI had launched a two-phased expansion program worth US$2.45 billion. Phase 1 was completed in June 2009 at a cost of US$816 million, increasing the producer's rolling output capacity from 750,000 metric tons to 2.1 million metric tons per annum. Emirates Steel's Phase 2A consists of a 1.6 million mt direct reduction plant and a 1.4 million mt steelmaking plant.
The casters of Phase 1 and Phase 2A are different, according to the ESI statement. The second produces beam blanks, which will eventually provide feedstock to Phase 2B's one million mt heavy section mill (RM4), due to be commissioned towards the end of 2011. Before this mill becomes operational, Phase 2A's continuous caster will produce steel billets, which will be rolled in the existing bar and wire rod mills of Phase 1.