Qatar Steel’s holding company has announced plans for a massive expansion.
Industries Qatar plans to spend QR16.9bn ($4.64bn) on its five industrial groups, with QR9.8bn($2.69bn) set to be spent on Qatar Steel. Some of the money will be used to launch flat steel products and could lead to an improvement of its profit to QR2.7bn ($741.3M) by 2014.
From 2010 Qatar steel will start work on a range of new facilities that will increase its capacity of bars and billet and increase its product range to include galvanised wire, PC strands and coil.
The expansion is part of Industries Qatar’s five year strategic plan for between 2010-2014, which aims to increase sales by more than QR20bn ($5.49bn).
Qatar Steel has also bought a 20% stake in Saudi-Arabian company South Steel. It will supply South Steel with sponge iron and technical support.
South Steel is setting up a steel melt shop with a capacity of 1Mt/y of billet and 500kt/y of steel bars in Jazan Economic City.