Italy’s Danieli has won a AED1.74bn ($474m) contract to build phase 2B of the Emirates Steel Industries’ plant in Abu Dhabi.
The contractor will build a heavy section rolling mill with production capacity of 1 million tonnes a year (t/y).
Emirates Steel now has output capacity of 2 million t/y, and will reach 3 million t/y by 2011.
The company plans to further boost capacity to 6.5 million t/y by 2013-2014 by making acquisitions.
In February 2008, Danieli won the first-phase contract of the expansion.
Danieli completed the $1bn contract in May and increased steel production at the plant to 2 million t/y (MEED 5:2:08).
In August, Saudi Arabia’s Al-Rajhi Steel awarded Danieli an SR800m ($213m) contract to build a steel plant in Jeddah.