The contract is for two air separation units to supply nitrogen and oxygen for Shadeed’s iron and steel plant in Sohar. The units have been designed and engineered by Air Products and are expected to be operational by August.

Shadeed is Oman’s first iron and steel complex. The $750m facility includes a direct reduced iron plant with an annual capacity of 1.5 milllion tonnes, and a steel melt shop that will produce 1.1 million tonnes a year of steel billets. Production is expected to start in late 2008.

Shadeed has signed supply agreements with three companies to secure feedstock for the direct reduced iron plant. The companies are Bahrain’s Gulf Industrial Investment Company, Brazil’s Samarco and Sweden’s LKAB.