By Conrad Egbert
Danieli walks away with the US $1 billion EPC contract to build one of the largest integrated steel complexes in the region
Italian construction firm, Danieli, has won a US $1 billion (AED4 billion) EPC contract to build one of the largest integrated steel complexes in the region.
The state-owned General Holding Corporation (GHC) awarded the contract.
Sheikh Hamad Bin Zayed Al Nahyan, chairman of Abu Dhabi’s department of planning and economy, said: “GHC will invest AED2 billion in the first phase and another AED2 billion in the second phase.
“This expansion will ensure that Abu Dhabi is well placed to meet the country’s buoyant demand for steel products.”
This strategy will result in the creation of a platform of world-class standard and globally competitive basic industries in the emirate, including aluminium, steel, petrochemical and related industries.
The complex is an expansion of the present steel rolling operations of the Emirates Iron and Steel Factory (EISF) in Mussafah, Abu Dhabi’s Industrial City.
EISF’s current production capacity is 600 000 tonnes per year, but this will rise to 2 million tonnes when the expansion is completed in two years’ time. Phase two expansion will lift total production capacity to 4 million tonnes of rebar and wire rod per year.
The expansion will be built on 1.5 million m2 of land adjacent to the existing operations and will include two new rolling mills and an integrated steel plant, comprising a direct reduction plant utilizing HYL technology and an associated steel melt shop.
Danieli will complete the design, engineering, procurement and construction of the facility under the terms of the EPC contract. Commissioning is expected to commence within the next two years.
In addition, a jetty dedicated to the handling of raw materials will be constructed.
GHC has appointed UK- based engineering consultancy firm, WS Atkins, to act as its project management consultant on the steel complex.