VAI signs Hadeed contract

07 August 2004
A consortium of Austria's Voest Alpine Industrieanlagenbau (VAI) and Germany's SMS Demag signed in late July the contract to expand and modernise the Saudi Iron & Steel Company (Hadeed)hot rolling mill in Jubail. The contract, worth about Eur 130 million ($156 million), will double the plant's flat steel product capacity to 2 million tonnes a year (t/y). VAI's share of the contract will be about Eur 100 million ($120 million). The team was first selected for the contract in April (MEED 11:6:04).

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).

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.

Get Notifications