Abu Dhabi-based General Holding Company(GHC)has signed a memorandum of understanding with Danieli & Company, providing for the Italian firm to supply technology to the proposed Mussafah integrated steel complex.

The estimated $550 million plant will have capacity of 2 million tonnes a year (t/y) and comprise a direct reduction iron plant, meltshop facilities and a wire rod mill. As part of the project, the existing Mussafah rolling mill will also be doubled in size to 1.2 million t/y (MEED 4:10:02).

A final agreement between GHC and Danieli is expected to be signed by year-end. A new company, Emirates Iron & Steel, will be established by GHC to undertake the project, which has been under discussion by several Abu Dhabi government agencies for some time (MEED 2:9:05).

The UK’s Atkinsis acting as technical consultant on the project: the joint financial adviser is HSBCand Abu Dhabi Investment Company (ADIC).