The Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) plans up to the end of 2009 to finish the construction of its new joint venture steel plant, namely Hamriyah Steel in the United Arab Emirates (UAE).
As SteelOrbis previously reported, Metalloinvest's new plant, located in the UAE's Hamriyah Free Zone, will produce annually approximately one million metric tons of rebar of 10-40 mm diameter. Billets necessary for production will be supplied to the new plant by Metalloinvest's subsidiary Ural Steel.
According to preliminary estimations, the new plant will allow Metalloinvest to increase its share in UAE's steel products market to about 25 percent.
"The advantageous location of plant in a region with a growing demand and stably high prices for the construction assortment products, allows us to expect significant profit. The proximity to the end users and the location of the plant in the port will enable us to minimize transportation costs, both for the delivery of raw materials, as well as for the delivery to finished products," reads the company's statement.
Hamriyah Steel is a joint venture of Metalloinvest and Dr. Sheikh Sultan Bin Khalifa Bin Zayed Al Nahyan, the ruler and emir of Abu Dhabi. 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 estimated cost of the new plant is $156 million.