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Eying Libyan Resources, Gulf Financiers Form $5bn Steel Company.

Byline: The Tripoli Post

Summary: A group of Gulf financiers announced the formation of a steel company worth US$5 billion yesterday that will acquire or build facilities across the world in an effort to dominate the booming local steel market, The National in Abu Dhabi reported on Wednesday.

A group of Gulf financiers announced the formation of a steel company worth US$5 billion yesterday that will acquire or build facilities across the world in an effort to dominate the booming local steel market, The National in Abu Dhabi reported on Wednesday.

The company, to be called HadeedMENA, will establish basic steel mills in countries with large iron ore and energy reserves, then transport steel billets to planned facilities in Bahrain, the UAE and other GCC countries to transform them into various products including steel reinforcement bar (rebar).

The company said it would produce eight million tonnes of steel products a year, increasing to 12 million tonnes "in the future," The National reported.

The company will build so-called "upstream" steel facilities in countries that are rich in iron ore and easy access to cheap sources of energy.

Hisham al Rayes, the head of venture capital at Gulf Finance House, said the company was looking at Australia, Brazil, India and Central Asian countries, as well as Yemen and Libya as possible locations for facilities for producing basic steel billets or pellets.

Although Libya has tried to produce steel by means of its steel complex in Misurata, 200 km east of Tripoli, the country's ample energy resources as well as experienced personnel in this field could attract HadeedMENA to this region.

The HadeedMENA project is the largest in a number of steel projects announced in the Gulf. Proleads, a regional construction research company, estimated in May that $18bn was being invested in 47 steel projects in GCC countries, the paper said.

Saudi Arabia is investing $4bn to build several massive plants, while Qatar is building a $1.5bn facility. In Abu Dhabi, Emirates Steel, a subsidiary of Abu Dhabi Basic Industries Corporation, is investing between $5bn and $6bn to add several million tonnes of steel capacity to its sites in Musaffah.

A[umlaut] 2008 - The Tripoli Post

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Publication:The Tripoli Post (Tripoli, Libya)
Date:Jul 27, 2008
Words:374
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