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Dubai: Dubai Investments Industries (DII), a wholly owned subsidiary of Dubai Investments, on Wednesday acquired a 10 per cent stake in Saudi Arabia-based South Steel Company.
Promoted by Pan Kingdom Investments, the $350 million South Steel Company is scheduled to commence commercial operations in December 2010.
It will have an initial cap-acity of one million tonnes per annum.
The plant, being set up with technological assistance from Germany's SMS Group, will produce high-quality steel billets and reinforcement bars in accordance with global standards.
Commenting on the acquisition, Shukri Al Muhairi, General Manager of DII, said, "Steel is among the fastest growing industries today, and with construction activities proceeding apace across the Middle East and with the regional steel industry tipped to sustain its growth momentum through the next decade, demand for steel is expected to rise even further.
"As a high-capacity plant incorporating state-of-the-art technology features, South Steel Company will be uniquely positioned to cater to this huge demand, particularly in Saudi Arabia and the Gulf region, where the frenetic pace of construction has dramatically increased demand for quality steel."
While the steel billets produced by the South Steel Company will be consumed entirely by Saudi Arabia and the Gulf region, 15 per cent of the output of reinforcement bars will be exported to Yemen and Sudan, and the rest will be consumed domestically.
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