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| Background |
Emirates Steel IndustriesEmirates Steel Industries (ESI) plans to develop an integrated steel complex in Mussafah, ICAD I, Abu Dhabi.
The project is phase II A of of Adbic's plan to expand its steel rolling operations in UAE to reach a capacity of 6.5 million tons per year.
The project includes a DRI plant and meltshop which will be identical to those in the first integrated complex but the caster will produce beam blanks and blooms.
The project will also cover the short fall of about 400,000 tonnes of steel billets that is required for the existing rolling mills.
Phase II (A & B) will cost around USD 1.6 billion.
The plant will be operated by Emirates Steel IndustriesEmirates Steel Industries.
The gas will be supplied by Abu Dhabi National Oil CompanyAbu Dhabi National Oil Company. |
| Latest Events |
In April 2011, the project was completed. |
| Previous Events |
In Q1 2011, commissioning of the complex started.
In October 2010, cold commissioning of the 2 plants started.
In August 2010, construction of the complex was ongoing.
In September 2009, 52% of the project construction works were completed.
In July 2009, civil works were completed and erection of structural steel started.
In 2008, construction started.
In February 2008, the USD 700 million EPC contract was awarded to Danieli and Company. |
| Scope of Work |
Construction of:
- 1.6 million t/y DRI plant
- 1.4 million t/y Melt shop/Cast to produce the semis (bloom 250 mm2 and beam blanks 280x220x90mm, 400x320x100mm and 610x320x100 mm) |
| Financing Source |
NatixisNatixis is the financial adviser.
In April 2011, Al Hilal Bank allocated USD 117 million as part of a dual tranche Islamic and conventional financing deal. The Ijarah-structured loan would partially fund ESI's plant expansion project and partly repay the company's bridge loan facility.
On 25 August 2010, ESI announced that it raised USD 1.1 billion to finance the project. The company signed a seven-year project financing agreement with a consortium of seven conventional banks and two Islamic finance institutions.The conventional banks consortium consists of the National Bank of Abu DhabiNational Bank of Abu Dhabi, Union National BankUnion National Bank, First Gulf Bank,First Gulf Bank, Bank of BarodaBank of Baroda, Arab Banking CorporationArab Banking Corporation, Al Khaliji France and Al Khaliji Commercial BankAl Khaliji Commercial Bank. The two Islamic finance institutions include the Abu Dhabi Islamic BankAbu Dhabi Islamic Bank and Al Hilal Bank.Al Hilal Bank.
On 1 July 2010, financial close was achieved on a USD 500 million export credit facility from the export credit agency Sace.
In April 2010, ESI sent requests to the banks for a long term financing loan (about USD 1.5 billion) to finance the bridge loan that matures in August 2010.
In September 2009, ESI announced that the company rolled over the USD 700 million bridge loan, coming due in 2009, to the end of August 2010, and will seek USD 600 million in debt from the market at the start of 2010. The export credit agency, Sace, would provide debt financing alongside a consortium of local banks.
In July 2009, ESI was working to extend the USD 700 million short-term loan by a further nine months.
In May 2008, ESI raised USD 700 million through an 18-month loan from seven banks. The loan was provided by HSBCHSBC, NatixisNatixis, National Bank of Abu DhabiNational Bank of Abu Dhabi, Arab Banking CorporationArab Banking Corporation, Mizuho, and HVB/Unicredit Group. |
| Contract Packages |
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| Project News |
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| Schedule | Contract Phase/Phase | Description |
| Feb 2008 |
EPC | Contract awarded to Danieli and Company
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| 2008 |
EPC | Construction of the complex started
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| Jul 2009 |
EPC | Civil works completed and erection of structural steel started
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| Oct 2010 |
Commissioning | Cold commissioning of the 2 plants started
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| Q1 2011 |
Commissioning | Commissioning of the complex started
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| Apr 2011 |
Completion | Project completed
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