The $200 million plant will have capacity of 90,000 tonnes a year (t/y) of cold-rolled stainless steel, and an offtake agreement has been signed with the UK's Stemcorfor 70,000 t/y of the output. Outokumpu Stainless Steelof Finland is supplying technology and raw materials for the plant, which is due to begin commercial production in 2007.

The project will be 60 per cent debt financed, and Usco is close to reaching a loan agreement with National Bank of Abu Dhabiand Abu Dhabi Islamic Bank.

The local Al-Gaith Holdingsis also setting up a $140 million steel plant in the emirate, with capacity of 500,000 t/y (MEED 9:1:04).