Two companies are also pursuing a second expansion project at Hadeed, comprising the construction of a 1 million-t/y steel plant. VAI and Italy’s Danieli & Companyare the bidders for the work.

Bankers are expecting the preliminary information memorandum (PIM) for the debt financing of Hadeed’s expansion to be released soon after the contract awards. They say that export credits are likely to play an important role in the anticipated multi-tranche package.

Both projects are part of a larger scheme aimed at doubling the company’s flat products capacity to 2 million t/y and to raise its long products capacity to 3 million t/y from 2.5 million t/y. Several other awards are awaited on the expansion programme, including the contract to install a paint coating line with capacity to handle 150,000 t/y of flat products (MEED 11:6:04).