Ministry of industry and minerals of Iraq has recently confirmed that the ministry has settled 700 million USD project with the United Brothers Holding, Turkish Industrial Group, to revamp State Company of Iraq for Iron & Steel. State Company for Iron & Steel was inactive for a long time, and it was last sighted to act back in 2003, in the month of April.
SCIS, situated at the Southern region of Basra had a glory of possessing a capacity of 440,000 tons per year, producing 12 mm to 32mm diameter rebar and round bar. In the year of 1989, the company achieved its highest production of 200,000 tons. This was the stage when Gulf War did not start. Between the years of 1991 to 2003, the company was operated poorly and as a result of that, faced a huge lack in adequate funds.
The plant will be revamped in three stages. The first stage is about completion of Q3 within the year of 2014. It is anticipated that by that time the firm will be able to produce 820,000 tons. In the second phase of development, the firm’s melting capacity will be raised. The melting capacity is expected to reach double after revamp.
At the third or final stage, two separate iron plants will be dismantled and instead of that a new unit will be formed with a capacity of 1.2 million per year. ZR Reformer or Midrex technology will be employed to accomplish the project.
The overall project is expected to be completed by the year of 2016. The profits from the plant will be divided into the Basra province and Turkish Company.