United Steel Company (SULB), a joint venture between Bahrain-based Gulf United Steel Holding Company and Japan's Yamato Kogyo Co., Ltd, has started the first phase of construction in its steel manufacturing project in Bahrain, ArabSteel has reported.
The first phase of the construction is expected to be completed in 2011, according to SULB's managing director Khaled Al-Qadieri, who 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.
As SteelOrbis previously reported, two consortiums, formed by Kobe Steel-Midrex and SMS Meer/SMS-Samsung Engineering will implement SULB's planned facilities, which include a direct reduced iron (DRI) plant with an initial capacity of 1.5 million metric tons per year, and a melt shop and heavy section rolling mill with a designed capacity of 800,000 metric tons.
The complex will also include a pelletizing plant with an annual production capacity of five million metric tons and a second pelletizing plant that have been launched with an annual capacity of seven million metric tons complementing the first one.
Regarding the construction phase of the complex, 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 second half of 2012.