Kobe Steel Receives Plant Order from Bahrain Steel Company

Kobe Steel, Ltd. has been awarded a contract to supply a Midrex Direct Reduction plant with an annual capacity of 1.5 million metric tons to Bahrain ’s United Steel Co (SULB).

Under the full turnkey project, Kobe Steel is responsible for the design, equipment supply, construction and start-up of the facility, which will make direct reduced iron (DRI), which is used as a supplement or substitute for scrap in electric steelmaking. The value of the order was not disclosed.

This is the second recent order for a Midrex plant for the Kobe Steel Group. This past December, Midrex Technologies Inc., a wholly owned subsidiary of Kobe Steel, received a contract to supply the technology for an Indian plant.

SULB’s direct reduction plant will be constructed in the Hidd Industrial Area in Bahrain, adjacent to an iron ore pellet plant that Kobe Steel constructed for Gulf Industrial Investment Co. (E.C.). With a capacity of 6 million metric tons a year, the plant went into operation in January 2010.

Kobe Steel anticipates that the direct reduction plant contract will become effective in July 2010. The contract calls for the plant to be completed 30 months after the contract becomes effective, which would indicate the facility could start by early 2013.

SULB is a joint venture between Foulath in Bahrain and Yamato Kogyo Co. Ltd. in Japan. The SULB steel complex will also contain a melt shop and a heavy section rolling mill, to be supplied by SMS Concast AG of Switzerland, SMS Meer GmBH of Germany, and Samsung Engineering Co. Ltd. of South Korea.

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