Russian steel and iron ore producer Metalloinvest has announced that on January 26 it started hot trials at its UAE-based rebar producing subsidiary Hamriyah Steel, a joint venture with Dr. Sheikh Sultan Bin Khalifa Bin Zayed Al Nahyan, the ruler and emir of Abu Dhabi.
Accordingly, it is expected that during the next three weeks the hot trials will be successfully completed and that Hamriyah Steel will produce its first 600 mt of rebar. By the end of 2010, the plant intends to reach its full production capacity of one million mt per year. Hamriyah Steel will produce rebar of 10-40 mm diameter, meeting both local and international standards such as BS4449, ASTM A615 and DIN 488.
"This is an historical event as it finalizes two years of construction of the first Russian steel plant in the United Arab Emirates," Hamriyah Steel general manager Shukhrat Nishanov said.
Hamriyah Steel will ensure Metalloinvest's access to the Middle East market, and will create conditions for the expansion and diversification of its business activity in the region. Experts estimate that Hamriyah Steel could claim 25 percent of the UAE rebar market and could expand export sales, mainly in the Gulf region, including Iran, and also in Egypt, thanks to its advantageous geographical location. The proximity to end-users and the location of the plant close to port will enable it to minimize transportation costs, both for the delivery of raw materials, as well as for the delivery of finished products.
As SteelOrbis previously reported, the equipment supply contract for the Hamriyah Steel was awarded to SMS Meer S.p.A., the Italian subsidiary of German plantmaker SMS Meer. The investment in the new plant amounted to $150 million.