Steelmaker Qatar Steel and iron ore pelletizing company Bahrain Steel have signed a $1.27 billion deal for the supply of 5Mt of raw materials over five years.
The agreement, announced by Qatar’s Ministry of Commerce and Industry, aims to boost industrial co-operation and strengthen the steel sector in the region.
The strategic partnership will ensure a stable supply of basic raw materials for Qatar Steel’s operations. Bahrain Steel, located in the heart of the Arabian Gulf, operates twin plants with a combined capacity of 12Mt of pellets.
Producing a range of pellets for both direct reduction and blast furnace steelmaking, Bahrain Steel sources raw materials via its own port terminal. Three-quarters of its finished products are exported.
Established in 1974 as the Arabian Gulf’s first integrated steel plant, Qatar Steel began commercial production in 1978 and has been a wholly owned subsidiary of Industries Qatar since 2003.
Headquartered in Messaieed Industrial City, south of Doha, it also operates a UAE-based subsidiary, Qatar Steel Company FZE.
Source: OREACO