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Sun Metals and Posco Signed Pact for Sur Steel Plan

The first agreement was an engineering, procurement and construction pact between Sun Metals and South Korea’s Posco Engineering and Construction, while the second agreement was signed by the company with Sojitz Corporation for raw material supply and finished product offtake. The company will use DRI and scrap metals on a certain proportion for making liquid steel, which will be for making steel products including billets, TNT rebars and seamless pipes. The project, which is coming to at Sur Industrial Estate, will have four major facilities. The unit will manufacture 1,2 Mt of rebar and 1,15 Mt of mid-size salable steel products, according to the company. The Sur steel project, which will have an average capital expenditure or USD 160 per tonne, will feature two electric arc furnaces, two ladle refining furnaces, one billet caster, and one billet cum bloom caster. T. Sivarajan, Director, Operations of Sun Metals, said that most of the steel products are for the domestic market and the larger Gulf region. “We want to bridge the gap in demand in the Gulf region. Then we will go to the larger Mena region for exporting products. Countries in the Mena region has a potential gap for 25 Mt of various forms of steel,“ Sivarajan said, adding; “Demand for steel products is high in the GCC region due to high level of construction activities. The highest per capita consumption of steel is in the Gulf region.“ He said the project will be completed within 30–36 months. Sun Metals is owned by Dubai-based Adiva Corporation, which is the promoter. Investors are also coming from India and the promoters are open for investment from local investors.


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