The UAE-based steel producer General Holding Corporation (GHC) has announced the conclusion of an agreement with Italian plantmaker Danieli for the supply of $1 billion worth of equipment for the expansion of its Abu Dhabi-based Emirates Steel Industries plant.
The deal is a part of a $4.5 billion investment plan directed at the expansion of Emirates Steel Industries. The second phase expansion will raise the mill's capacity to three million metric tons per year from the current two million metric tons. The expansion will include construction of a new direct reduction plant, a new steel melting workshop with continuous billet caster and also a new steel rolling mill.
70 percent of the supply deal will be financed through borrowing.
Full commencement of operations using the new equipment is expected by the first quarter of 2011.