Germany’s Siemens was the only other bidder for the technology licensing, equipment supply and installation contract, worth $300m.

The work covers an electric arc furnace and a steel rolling mill. The furnace will have a molten metal capacity of 1 million tonnes a year (t/y), and the mill will have a steel bar capacity of 800,000 t/y.

Qasco’s existing capacity at Mesaieed is 1.2 million t/y of molten steel, while the mill has a capacity of 740,000 t/y.

Feedstock for the furnace will come from the existing direct reduction iron plant at Mesaieed.

Qasco is spending more than $1bn on expanding its Mesaieed complex to meet industry demand.

After financing delays in 2007, because of difficulties in the global credit market, Qasco expects to raise funds for the scheme this year (MEED 19:10:07).