Revamped steel mill resumes operations in Bahrain
MANAMA: The region’s first stainless steel mill is now back on stream in Bahrain, nearly six years after operations were halted due to market conditions.
United Stainless Steel Company (USCO) announced yesterday that it is now fully operational after completing technical maintenance and plant upgrade.
It has now entered into a production and sales agreement with Swiss company Chromiumtrade SA, whereby the latter will procure the necessary raw materials, manage operations and sell end products to its customers.
“This is a landmark occasion for Bahrain’s industrial sector as we are once again able to produce high-quality stainless steel in the kingdom,” said USCO chairman Shaikh Khaled Salem Al Sabah.
“Over the last year we have made a significant investment to upgrade the mill to make its operations more eco-friendly and to restart operations.
“Since then we have successfully carried out the hot and cold commission tests and we are happy to note that the quality of end products from the mill meets international quality standards. We have now handed over the mill to Chromiumtrade, who will be managing the operations.
“It’s been a long journey, but we believe the timing and the new structure is right.”
High-quality stainless steel products will be processed at the 100,000 tonne per year Hidd-based cold rolling mill and shipped to customers both in the GCC and worldwide, the statement added.
The premium product range will include items such as wide and slit coils and stainless steel sheets, used by industries ranging from decoration and home appliances to pharmaceuticals and automotive industries.
Chromiumtrade SA chief executive Francesco Ruffo di Calabria said it would “selectively channel USCO products to a reliable and stable customer base”.
“The superior quality seen so far will certainly simplify our distribution efforts,” he added.
Mr Calabria also said he hoped the venture would be only the first step of “investments in the region and collaboration with the Gulf Investment Corporation and Foulath”.
USCO said it expects to gradually ramp up production to around 8,000 tonne per month over the next 12 months.
Its workforce currently includes more than 50 employees of whom Bahrainis comprise 56 per cent.
The company said it expects to triple the workforce, when the plant is running round the clock.
The additions to the workforce will also include beneficiaries of the labour fund authority, Tamkeen’s graduate programme.
USCO began commercial operations in the fourth quarter of 2008 as the first stainless steel re-roller in the Middle East.
It was reported then that an investment of $200 million had gone into establishing the plant.
USCO is fully-owned by Foulath, a Bahrain-based investment vehicle and holding company, that has established companies across the entire steel value chain from “mine to metal”.
It has also developed the world’s only fully-integrated single site steel complex in Bahrain, which includes USCO’s steel mill.
The market value of the complex was estimated to be in excess of $3.5 billion in 2010.
Source: http://www.gdnonline.com/Details/250786/Revamped-steel-mill-resumes-operations-in-Bahrain
