MEED reported that the Kuwaiti and Japanese JV behind Bahrain's USD 1.2 billion Hidd Steel Mill project is close to acquiring the 450,000 tonne per year United Gulf Steel rolling mill in Saudi Arabia.

Mr Khalid al Qadeeri CMD of United Steel Company said that “The deal is in the final stages of due diligence and the transaction should be completed soon. We have reached an agreement with the lenders regarding finance so things are going smoothly.”

Mr Al Qadeeri said that “UGS is currently in operation but due to a lack of both working capital and raw materials it is only producing 20% to 30% of capacity. Sulb will ramp up production as soon as the transaction is complete. When we acquire it, we will bring in raw materials from Japan's Yamato and Qatar Steel. This will help out in the short term but when Hidd in Bahrain is complete we will ship billets on barges to supply the plant.”

He reveals that Sulb is looking to expand into the production of steel rebar and is carrying out a study for a new facility at an as yet undefined site in Kuwait which would have a capacity of at least 500,000 tonne per year.

Mr Al Qadeeri said that “We are looking at Kuwait because it is close to the Iraq market Kuwait. We will have a surplus of raw materials that we will want to utilize. A study is being carried out and we will make a decision soon.”

(Sourced from MEED)