Shadeed Iron and Steel, which is due to commence operations early next year, plans to shortly begin development of a Steel Melt Shop at its sprawling complex within the Port of Sohar. The Melt Shop, conceived as part of the project's Phase II development, is a key component of Shadeed's ambition to create an integrated steel plant at Sohar. "Our Phase II plan includes completion of the 1.5 million tonnes per year (MTPY) Melt Shop and commence production of steel billets by 2012," said D K Saraogi, Executive President Projects, Shadeed Iron and Steel.
"We are currently engaged in finalising our strategy for the Steel Melt Shop. We are planning to commence work on the Steel Melt Shop in two to three months time and complete the project in 2012," he added in comments to the Observer. Indian steel-making giant Jindal Steel and Power, which acquired Shadeed Iron and Steel in May this year, is committed to the project's development into a world-class plant. The high-tech facility is substantially complete and is on track to commence commercial operations in January 2011.
Ahead of the project's commercial launch, the company is preparing to commence next month the process of cold commissioning in its 1.5 MTPA Direct Reduction (DR) plant. Hot commissioning is targeted to follow suit in December. Underscoring the company's ambition to emerge as a world-scale project, Shadeed has plans to expand capacity and diversify its manufacturing capabilities in the future. "The plot has enough scope for future expansion," says Saraogi, a veteran of the Jindal Group who is credited with overseeing the development of several large-scale steel ventures in India.
"Our vision is to produce 4 million tonnes of DRI per annum and 3.6 million tonnes of saleable steel per annum at this project in the next few years. Our future plans include rolling mills for long products and a seamless pipes mill of matching capacity." When operational early in 2011, Shadeed Iron and Steel will add to the growing diversity of Oman's industrial base. Besides catalysing investment in steel-related upstream and downstream industries in the Sultanate, the Shadeed project will also serve as an inexhaustible source of feedstock for customers in the wider region.
The availability of Hot Briquetted Iron (HBI) and billets also promises to fuel investments in fabrication industries, rolling mills, and spin-off units that manufacture a wide range of goods. "Having acquired Shadeed, the company is in a strong position to emerge as a major steel producer in the region. Shadeed has immense potential by way of its location, technology and logistics advantages," adds Saraogi.
By Conrad Prabhu
© Oman Daily Observer 2010
