The turnkey contract calls for: a slab yard and coil yard expansion; a second reheating furnace; a sixth finishing stand; a second downcoiler; a skin pass mill; and automation and training. The modernisation is due for completion by the beginning of 2006.

VAI is competing for two further contracts at Hadeed. It faces competition from Germany’s Ferrostaal for the contract to raise capacity at Hadeed’s direct reduction iron (DRI) facility to 1.5 million t/y, and is up against Italy’s Danieli & Companyfor the contract to develop a 1 million-t/y steel plant.

Both awards are expected by the end of the year (MEED 11:6:04).