Qatar Steel, a wholly owned subsidiary of Industries Qatar (IQ), has signed a subordinated loan facility agreement for a medium-term loan facility of $250M (QR912.5M), with a syndicate of two banks; the International Bank of Qatar (IBQ) and the Union National Bank (UNB).

The loan will be used by Qatar Steel to construct a state-of-the-art new steel melt shop of 1.1Mt/y capacity as part of an ongoing project. The expected launch date of the meltshop is first quarter 2013, and the targeted markets are local and regional.

Ali bin Hasan Al-Muraikhi, director and general manager of Qatar Steel says the loan facility marks a significant milestone in the expansion plans and aspirations of Qatar Steel, which is a leader in the steel industry, with a current annual production capacity of 2.4Mt of DRI/HBI, 1.9Mt of molten steel, 1.8Mt of rebar capacity and a 300kt/y wire rod mill.