South Korean firm wins US$400mn contract to build steel plant in Oman

steelrebar-chrismcsorley-flickrSouth Korean firm Posco Engineering and Contracting (Posco E&C) has been awarded a US$400mn contract to develop a steel mill in Sur, Oman

Oman’s Sun Metals LLC is establishing a major steel project in the Sur Industrial Estate, located in the Sharqiyah governorate. The project is expected to have a capacity of 2.5mtpa, and comprises a steelmaking and rolling plant. Billet, steel bars and special steel would be manufactured at the facility, stated officials from Posco E&C.

Hwang Tae Hyun, CEO of POSCO signed the contract with PT Sivarajan, director of operations at Sun Metals LLC. Hyun said that the project would be carried out with the support of the Omani government.

Sivarajan said, “We have reached a critical stage in the planning and development of this important project, which promises to stimulate the growth of a strong industrial base in the South Sharqiyah region of the country. Our goal is to establish a modern plant with a capacity to produce 2.5mtpa of liquid steel, which will be converted into finished saleable products, such as TMT-rebars, low alloy rounds, carbon construction and low alloy sections, and stainless steel seamless pipes.”

The project falls under a PEPCOM arrangement, according to which the project would be executed en bloc throughout the entire project cycle, including planning, engineering, procurement, construction, operation and maintenance, said Posco officials. The project is likely to be completed by 2016.

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