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Kobe Steel Receives Plant Order from Bahrain Steel Company

04/05/2010 - Kobe Steel, Ltd. has been awarded a contract to supply a MIDREX® Direct Reduction Plant with an annual capacity of 1.5 million tonnes to Bahrain's United Steel Co. 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.

Kobe Steel, Ltd. has been awarded a contract to supply a MIDREX® Direct Reduction Plant with an annual capacity of 1.5 million tonnes 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).
 
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 tonnes per 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. On this schedule, start-up is targeted for early 2013.
 
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.
 
This is the second recent order for a MIDREX Plant for the Kobe Steel Group. In December 2009, Midrex Technologies, Inc., a wholly owned subsidiary of Kobe Steel, received a contract to supply MIDREX technology for a plant in India.
 
SULB is a joint venture between Foulath in Bahrain and Yamato Kogyo Co., Ltd. in Japan.