MANAMA: United Steel Company (SULB), a joint venture between Bahrain-based Gulf United Steel Holding Company (Foulath) and Japan's Yamato Kogyo Co., Ltd. which own 51 and 49 percent of SULB respectively, awarded Nass Contracting WLL with the Civil Integration Package for its $1.2 billion integrated steel project in Bahrain. Nass is expected to begin execution of the contract on Aug. 1, 2011. The SULB integrated steel plant is comprised of a Direct Reduced Iron Plant (DRI Plant) with nameplate capacity of 1.5 million tons per year (mtpy) and design capacity of 1.8 mtpy, a Melt Shop (MS) with nameplate capacity of 0.80 mtpy and design capacity of 1.2 mtpy, and a Heavy Section Rolling Mill (HSM) with nameplate capacity 0.60 mtpy and design capacity of 1.0 mtpy. SULB will be the Middle East's first fully integrated medium and heavy beams and structural steel sections producer and is expected to replace approximately 20 percent of the annual 4 million ton imports of these products into the region once fully operational in second half of 2012. Foulath 1.3 million square meter state-of-the-art steel production complex in Hidd Industrial Area also consists of Gulf Industrial Investment Company's (GIIC) pelletizing plants and United Stainless Steel Company's (USCO) cold rolled stainless steel mill, both wholly owned subsidiaries of Foulath, which together with SULB, allow the company to operate across the entire steel value chain from iron ore to final product. Currently, Foulath operates an iron pelletization plant and a cold-rolled stainless steel mill in Hidd Industrial City. A $1.2 billion plant comprising a direct reduced iron unit, a melt shop and a heavy section rolling mill is under construction. Al Qadeeri pointed out that the integrated complex would not only be of the highest standard and quality but also the most competitive in terms of cost. Foulath holds 51 per cent of SULB's shares, while Yamato Kogyo has the rest. The other two key players are iron pellets producer Gulf Industrial Investment Company (GIIC) and cold-rolled stainless steel maker United Stainless Steel Company (USCO). The three companies are in operation adjacent to each other in the Hidd Industrial Area and located in a complex of 1.3 million sq m. GIIC and USCO, whose production capacities are 12 million tons and 100,000 tons, are wholly owned subsidiaries of Foulath. The three production facilities of SULB, GIIC and USCO signify an integrated value chain from iron pellets to final steel products. Foulath, the holding company, has Gulf Investment Corporation of Kuwait as its main shareholder with 50 per cent of the shareholding. Qatar Steel holds 25 percent while three Kuwaiti companies – MA Al Kharafi & Sons, the National Industrial Holding Group and the Kuwait Foundry Company - own the remainder shares. According to Al Qadeeri, SULB's total capacity would take care of 20 percent of imports of 4 million tonnes of similar products into the region. Al Qadeeri said the plant was being set up at a time when construction activity was at a new high in the wake of plans to build five economic cities in Saudi and infrastructure projects worth $33 billion being planned in Kuwait and $65 billion in Qatar. In this regard, he also pointed out that the GCC had allocated $20 billion to support Bahrain and Oman's economic growth.
