Asian Steelmakers Have Eye on Middle East

Two Indian steelmakers are considering major investments in Egypt while Japan’s Kobe Steel is part of a major project in Bahrain, according to news service Industrial Info Resources, Sugar Land, Texas.

Japan’s Kobe Steel has won the engineering and construction contract to expand an iron ore palletizing plant in Hidd, Bahrain. The expansion of capacity from 5 million tons per year to 11 million tons per year is expected to be a $570 million project.

Qatar Steel and three Kuwaiti companies will be major investors in the plant, which is operated by the Gulf Investment Corp.

Indian steelmakers are considering two other steel production ventures in the Middle East, with Egypt as the potential location.

India’s Essar Global is studying a $590 million steel plant and has had discussions with local officials in Egypt, according to Industrial Info Resources.

Tata Steel, Mumbai, is also studying the feasibility of a $900 million steel mill in Egypt. Both Essar and Tata have overseas expansion policies.

Essar is also planning a mill in Iran, and in North America Essar has recently acquired Minnesota Steel and Algoma Steel of Canada.

Tata has a ferrochrome plant in Richard’s Bay, South Africa and in late 2006 made a successful bid for Corus Steel, which had been Europe’s second largest steel company with an annual production of 18.2 million tons of steel.