Arab Steel reported that Maghreb Steel Company have celebrated the launch of its new project, hot steel production complex with a capacity of 1.5 million tonne per year in the occasion of holding the annual conference of Arab Iron & Steel Union in Marrakesh of Morocco.
This industrial complex shall be carried out on 3 phases, as Mr Al Fadhel Souqat president of Maghreb Steel Company confirmed in his address during the opening ceremony in which Arab and international companies participated.
The Phase I shall include completing the HRC production line with a capacity reaching one million tons. The work in phase 1 had begun in 2010 with cold tests. The Phase II will include the completion of hot rolling line for the production of Heavy Plates with a capacity of 500,000 tonnes per year and scheduled to launch in December 2010. The Phase III will consist of building a melt shop and continuous casting unit for slab production with a capacity reaching 1 million tonnes per year and is scheduled for launch in January 2011.
Costs to complete the Phases III of this project are estimated at USD 450 million which is built upon an area of 80 hectares and providing 1100 job opportunities. The completion of this project shall reduce the HRB imports volume, as imports of HR coils and plates in 2008 reached 496,000 tonnes. In addition, this project, when complete, shall contribute in reducing the overall cost of products, meeting the local market needs and develop exports volume.
On the other hand, the Moroccan market is considered one of the major markets that have been witnessing a constant increase in steel consumption, with annual steel consumption rising from 974,000 tonnes in 2000 to 2.2 million tonnes in 2008.
According to information got from Maghreb Steel sources, steel consumption for 2013 is projected to reach 3.4 million tonnes, 70% of which is longs and 30% flats. Eventually, this huge project took nearly 26 months to complete since laying its foundation stone in December 20th 2007 and up until its launch.
(Sourced from Arab Steel)
