Iraq’s ministry of industry and minerals has confirmed that it has finalised a $700 million contract with Turkish group United Brothers Holding to revamp and upgrade Iraq’s State Company for Iron & Steel, reports SteelGuru.
SCIS, located on the southern outskirts of Basra, has been out of action since April 2003. The company had a design capacity of 440,000 tonnes per year of 12 mm to 32mm diameter rebar and round bar. It achieved its highest output of 200,000 tonnes in 1989 before the first Gulf war. Limited operation was carried out between 1991 and 2003 before the mill was shut due to lack of funding.
The plant will be revamped in three stages;
- The first stage is the installation of a new 820,000 tonnes/yr 8 mm to 32 mm diameter rebar mill along with electric arc furnace meltshop and 130 mm to 150 mm square billet continuous caster. This should be completed in Q3 of 2014;
- Stage 2 is to double the melting capacity to over 1 million mt/yr and expand billet output to 130-180mm with an additional caster. A 250,000 mt/yr medium sections mill will be installed for production of IPE, IPN and UPN 80-160 sections, as well as 60 mm to 70 mm angles. SCIS’s existing rolling mill will also be modified to produce up to 250,000 tonne per year of light sections and rebar, giving the firm a finished long products capacity of 1.32 million tonnes per year by Q2 2015;
- State 3 will see the two direct reduced iron plants at the site dismantled and a new 1.2 million tonnes per year capacity DRI unit constructed, most likely using either ZR Reformer or Midrex technology.
The work is expected to be completed in Q2 2016. The contract stipulates that UB will also operate SCIS for a period of 18 years and train its staff. Profits from the plant will be divided between the Turkish company and Basra province.