A 2mn t/yr long and flat steel production plant in Dammam, Saudi Arabia, is up for sale, US-based global asset management company Gordon Brothers said.
The mill, which has not operated for nearly two decades, houses two billet casters, a thin slab caster, a 5-stand 4-high hot strip mill, an induction furnace, an electric arc furnace, a ladle refining furnace, and diesel power generators.
The plant was previously operated by Saudi steelmaker Al Tuwairqi. The company in 2006 contracted South Korea's Posco Engineering to supply machinery and equipment to the plant, but the equipment has remained unused since its shipment, coinciding with the global financial crisis in 2008. Al Tuwairqi has a 1.85mn t/yr long steel mill in Makkah, a billet and rebar production site with 1.5mn t/yr capacity in Dammam, and 500,000 t/yr of direct-reduced iron (DRI) capacity.
The equipment in Dammam dates from 1994-2008 but could be upgraded if necessary, and the company could potentially commence production soon after, market sources said.
Once the mill is operational, it is expected to increase domestic output. Market participants would welcome the additional capacity, given strong current demand bolstered by large-scale construction and infrastructure projects in the region. The addition of flat steel capacity is particularly attractive because the Gulf Co-operation Council region imports most of its flat steel and has few producers. A US steel company is considering purchasing the mill, market participants have suggested, although no official statements have been made.
