Arab Steel reported that Mass Global Investment Company will build a new steel factory in northern Iraq.

Mr Ahmad Ismael Saleh chairman of Mass Global said that the facility that will be located between the cities of Kirkuk and Suleimaniya in northern Iraq is designed to produce 1 million tonnes of steel and iron a year with a budget for the project estimated to be USD 400 million.

Mr Saleh said that Mass Global has signed a multi million dollar deal with Italy's Danieli & Company SpA under which Danieli will provide equipment for the new plant. Work on the plant is expected to start in the coming 3 months and will be completed in 22 months time.

The factory will be Mass Global's first foray into the steel industry. The project developer is currently investing some USD 2.5 billion in power generation projects in the Kurdistan region in northern Iraq. The total capacity of these power stations is expected to reach 2,125 MW by early next year.

Steel demand in Iraq is seen rising as the country plans to construct millions of housing units and several projects to upgrade its oil industry after signing mega deals with international oil companies to develop some of the country's vast oil fields.

(Sourced from Arab Steel)