South Korea’s STX Heavy Industries has signed an initial $3bn agreement to build integrated steel and power plants in Iraq.

The company will build a 500MW gas-fired power plant and a three million tonne-a-year steel plant in Basra under the engineering, procurement and construction deal.

Iraq will pay 40 per cent of the project costs. The remaining costs will be internationally financed.

In mid-January STX Wind Power, a subsidiary of STX Group, signed a $115m memorandum of understanding to supply wind turbines to Main Wind Company of the Netherlands. STX will provide 25 2MW turbines by the end of 2011.

The first six turbines will be used in a wind pilot project in northern Iraq.