Global steel giant ArcelorMittal on Tuesday said it will set up a $ 130 million steel plant in war-torn Iraq, in collaboration with Turkish firm Dayen.
“ArcelorMittal has signed an MoU to establish a joint venture with Turkish partner Dayen to build a steel mini-mill with electric furnace in Sulaimaniyah in Northern Iraq,” the steel firm led by NRI billionaire LN Mittal said in an e-mailed statement from Luxembourg.
In its initial phase, the mill would produce up to 2.5 lakh tonnes of rebars per annum from locally sourced scrap at an estimated investment of “$100m to $130m, jointly subscribed by ArcelorMittal and Dayen.”
Rebars are primarily used by construction and infrastructure companies.
“There is great demand for steel products for the local construction industry, which we aim to meet, working closely with our partner Dayen and the local government in Northern Iraq,” it added.
Construction for the plant is planned to start in the second quarter of 2010 and production is planned to commence early in 2011, the statement said.
“There are many opportunities for ArcelorMittal to assist in the development of the country,” said Group Management Board Member Christophe Cornier.