July ITB for Khorramshahr steel project

08 July 2005
The invitation to bid (ITB) will be issued in early July to international turnkey steel contractors for the Ahwaz Rolling & Pipe Mills Company (ARPMC)project in Khorramshahr. The company is also in negotiations with Italy's Arvedito help operate the new facility (MEED 13:5:05).

Five companies will be invited to bid for the greenfield project, which will have first-phase capacity of 800,000 tonnes a year (t/y). The prequalified engineering, procurement and construction (EPC) contractors include Italy's Danieli & Company, Germany's SMS Demag, Canada's Hatchand Austria's Voest Alpine Industrieanlagenbau.

The plant will consist of electric arc furnace melting, ladle furnace and vacuum degassing refining facilities, thin-slab casting and an in-line rolling mill as well as related facilities. Production should include 100,000 t/y of stainless steel strip. There are plans to double capacity at a future date.

The client says the technology is relatively new. Austria's Intecois the project consultant and is responsible for basic engineering and preparation of the tender documents. The turnkey contract will have a duration of 33 months. Contractors will be asked to bring some financing to the project, possibly through buyback. However, ARPMC will also have access to financing from the Oil Stabilisation Fund.

The plant was moved from its original location of Ahwaz at the request of the government. Iranian Mines & Mining Industries Renovation & Development Organisationand the state Pensions Fund hold 36 per cent in ARPMC and private shareholders own 28 per cent.

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