OREANDA-NEWS. Metalloinvest Management Company will start site construction works to build a still mill in the UAE in the second quarter of 2007. The project aimed at export markets diversification and added-value production output increase will take two years to be completed.

According to the press service of Metalloinvest, as it is decided by the shareholders of Gazmetall JSC, Hamriyah Steel will become a part of the united Gazmetall Holding, which is currently in the final stage of its asset consolidation.

The project is being realized in accordance with an earlier planned timeline. In the end of 2006 a land plot for the mill and an industrial license were obtained. By March 2007 another step was completed to get all necessary documentation for infrastructure development providing for gas and water supply. 

Construction works are expected to be accomplished by the end of 2008, and by late 2009 the plant will be operating in full capacity.

According to preliminary estimates, the total capital investment will amount to US$156 million.

Construction of 1 million tpy rebar production facility in the UAE will enable Metalloinvest to increase sales efficiency of Ural Steel, since it is planned to cut down low-profit billet export and to organize billet processing to produce rebar.
It is expected that with the UAE still mill in operation, Metalloinvest will take up a 25% share on the market and will be able to develop rebar export supplies to other countries in the Middle East, Central Asia, North and South Africa.