Qatar Steel has signed a $250m loan deal with two local banks and will use proceeds from the deal to build a new steel making plant.

The deal is being financed by International Bank of Qatar and Union National Bank. The new steel plant will be completed in early 2013 and will have a capacity of 1.1 million tonnes a year.

The company is also looking to resurrect a more than $1bn expansion project that was pulled from the financing market in 2007 as the global banking crisis hit appetite for project lending (MEED 22:04:11).