At least four companies are prequalified to bid for the project, but it is understood that one – Japan’s Kobe Steel– has declined to participate.

The companies expected to bid are: Austria’s Voest Alpine Industrieanlagenbau (VAI),with Germany’s Siemens; Germany’s SMS Meer; and Italy’s Danieli & Company. The technical consultant is the UK’s WS Atkins.

The Fujairah project is one of several steel schemes planned in the federation. In May, Danieli won the EPC contract to build a stainless steel plant in Abu Dhabi for the newly established United Stainless Company (Usco), a joint venture led by Kuwait-based Gulf Investment Corporation (GIC) with local and Kuwaiti investors.

The $200 million plant will have capacity of 90,000 t/y of cold-rolled stainless steel and is due to begin commercial production in 2007 (MEED 28:5:04).

Abu Dhabi-based Al-Ghaith Holding Companyis also evaluating prequalifications for various packages including consultancy services, civil works and equipment supply on its proposed $140 million Hamil Steel pelletising and billet plant in Abu Dhabi emirate (MEED 20:8:04).