Metalloinvest to start steel mill construction in UAE in II quarter of 2007

Metalloinvest Management Company will start site construction works to build a still mill (Hamriyah Steel) 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 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.