A recent company buyout in the Middle East’s steel sector will help reduce imports of light, medium and heavy sections and beams by as much as 25 per cent, according to an official linked to the company that made the acquisition.

United Steel Company (Sulb), a subsidiary of Bahrain-based Foulath, recently acquired Jubail-based United Gulf Steel Mill Company (UGC), which has capacity to produce 450,000 tonnes annually of light and medium sections and beams.

Sulb is building a manufacturing complex in Bahrain’s Hidd Industrial area that will have a direct reduction iron plant of capacity up to 1.8 million tonnes per year and a melt shop and heavy section rolling mill of annual capacity up to 1 million tonnes.

Hisham Al Razuqqi, CEO of Gulf Investment Corporation (GIC), which has a 50 per cent stake in Foulath which in turn has a 51 per cent stake in Sulb, highlighted that the acquired firm UGS would benefit from billets supplied by Sulb at competitive rates and on a continuous basis. Sulb’s complex will be ready in the second half of next year.

The official pointed out that Sulb and UGS would be the only producers of a full range of light, medium and heavy sections and beams in the region and that they would replace about 25 per cent of the total annual imports of 4 million tonnes of those products.

Foulath has a pelletising plant adjacent to Sulb’s project site, thereby facilitating integration. It also owns United Stainless Steel Company (Usco) which makes flat stainless steel products.