Abu Dhabi-based Al-Gaith Holding Companyis in final negotiations to appoint a project manager for its proposed 1.5 million-tonne-a-year (t/y) integrated steel complex at Sohar port and industrial area. Japan's Kobe Steel, which was awarded the 30-month engineering, procurement and construction (EPC) contract in September, is scheduled to begin work on the facility by mid-February (MEED 21:1:05).
'We are looking to appoint a project manager within three weeks,' Bilal Matarneh, general manager at Shadeed Iron & Steel, the project company, said on 16 November the sidelines of the Port of Sohar conference, organised jointly by MEED and Sohar Industrial Port Company (SIPC). The complex, which is the sultanate's first iron and steel plant, will require a total investment of $350 million in the first phase. Under the 30-year land lease agreement with SIPC, various government ministries will supply natural gas, seawater and port access with a dedicated berth with a depth of 16 metres and a length of 300 metres. India's MN Dastur & Companyis the consultant. Initial project management and local engineering was carried out by Al-Ghaith's industrial arm, Advance Projects Development. The US' Midrexis providing design, technology and equipment for the 500,000-t/y direct reduction iron (DRI) unit. Austria's VAI Fuchsis supplying technology, design and equipment for the 1 million-t/y steel meltshop. Further expansions planned at the complex include a 4 million-t/y pelletising unit, which is expected to take project costs beyond $700 million. The project was originally to have been located in Abu Dhabi.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.