DRI plant plan for Ahwaz

19 November 2004
A new world-scale direct reduction unit has been issued for tender by Iran National Steel Industries Group (INSIG) at its Ahwaz facility. A contract has been awarded and a further two are out to tender at state-owned Khouzestan Steel Company( KSC- MEED 6:8:04).

INSIG, a subsidiary of state-owned National Iranian Steel Industries Company (Nisco), has asked for groups composed of foreign and local companies to bid for the contract by 29 December on a buy-back basis. The project centres on the installation of a new direct reduction module of 800,000 tonnes a year (t/y) and includes the expansion of material-handling facilities at the site to 2.5 million t/y. Existing capacity at INSIG's Ahwaz plant is 800,000 t/y from a rolling mill meltshop. The consultant is the local Tara Tarh Engineering Consultants(see Tenders).

Progress in expanding the KSC plant, also at Ahwaz, is moving ahead. In October, the company awarded the direct reduction equipment supply contract to German-registered Mines & Metals Engineering (MME). The three-year contract involves the installation of a new midrex module to double direct reduction capacity to 3 million t/y.

Bids are due in December for the contract to expand KSC's meltshop to 3.2 million t/y from 1.5 million t/y, but the deadline is likely to be extended at the request of bidders. Tara Tarh is also the consultant for the KSC projects.

The KSC plant will also have a $160 million build-operate-transfer (BOT) captive power plant, for which three groups of developers are negotiating, including GE Franceand Germany's Siemens. However, project sources say that due to the complex nature of the BOT model, an award is not expected soon.

Another government steel project is moving ahead on the Gulf coast. Hormozgan Steel Companyis developing a 1.5 million-t/y direct reduction unit on a buy-back basis. The main parties on the contract have already been agreed and the project is expected to be finalised early next year. Basic engineering is under way.


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