Arab Steel reported that United Steel Company has started the Phase I of construction in its steel manufacturing project in Bahrain.

Mr Khaled Al Qadieri MD of SULB said that the Phase I of the construction is expected to be completed in 2011. He explained that embarking on the three plants of the complex have come after reexamining all necessary environmental stipulations completing all related studies complying with local and international environmental standards and acquiring all necessary approvals from official authorities.

The report said that 2 consortiums, formed by Kobe Steel Midrex and SMS Meer SMS Samsung Engineering will implement SULB's planned facilities, which include a direct reduced iron plant with an initial capacity of 1.5 million tonnes per year and a melt shop and heavy section rolling mill with a designed capacity of 800,000 tonnes.

The complex will also include a pelletizing plant with an annual production capacity of 5 million tonnes and a second pelletizing plant that have been launched with an annual capacity of 7 million tonnes complementing the first one.

Mr Al Qadieri pointed out that the two contracting companies, Kobe Steel of Japan and SMS of Germany who will provide the technology for the project have awarded contracts to Bahraini companies whereas SULB haven't awarded any further contracts other than those with the aforementioned companies for the purpose of plant construction.

SULB will begin commercial operations and the production of medium and heavy beams and structural sections by the H2 of 2012.

(Sourced from Arab Steel)