Oman’s largest steel rebar mill to launch shortly

Naushad A Ansari

The Sultanate’s largest steel reinforcing bar (rebar) mill is due to be brought into operation during the first quarter of this year, a move set to dramatically bolster domestic production capacity of a commodity that is strategically vital to the well-being of the nation’s building and infrastructure sector.

The 1.4 million-tonne per annum (mtpa) capacity rebar mill is the latest addition to the expanding integrated steel complex of Jindal Shadeed Iron & Steel LLC at Sohar Port. Rebars are widely used with concrete in the construction of buildings and all kinds of civil structures. Along with cement and steel, rebars are a staple of the building and construction industry.

In remarks to the Observer, Jindal Shadeed Director and Plant Head Naushad A Ansari, said the Sohar-based company is set to become a supplier of finished steels for the first time in its five-year-history with the imminent production of rebars.
“Our 1.4 mtpa capacity rebar mill is not only first of its kind in terms of capacity, but it’s also the most modern. From the planning stages through to the cold trial stage, we succeeded in crossing all the hurdles thanks to the support and guidance of our honourable chairman, as well as the dedication and hard work of all our employees. The rebar mill is slated to be in operation by the first quarter of 2016,” he stated.

The impending launch of the rebar mill is a highpoint for the company which, like steelmakers around the region, has been squeezed by a prolonged downturn that is hurting the global industry. Excess production capacity, falling prices and weak demand had a significant impact on producers in 2015, a trend expected to spill into the current year as well.

Giving his assessment of Jindal Shadeed’s operational performance in 2015, Ansari said: “2015 has been a year of mixed fortunes. We have switched from being a supplier of HBI (hot briquetted iron) to a supplier of semi-finished steel (round and square billets. We are also in the process of completing the installation of our rebar mill, which is expected to be fully commissioned during Q1 2016.”

He further added: “As the steel market is in a very critical situation, we are also feeling the pinch. Nevertheless, we have established ourselves as a regular and reliable supplier of steel billets and made good strides in the world market scenario.”

Despite the challenging market conditions, Jindal Shadeed achieved a string of production milestones last November. Notable were the plant’s success in achieving the highest daily output — 6,440 tonnes — clinched on November 30; highest monthly output — 124,536 tonnes; and highest dispatch in a month — 90,498 tonnes. The Sohar plant also won a pair of awards from Midrex — technology supplier for the Direct Reduction plant — for achieving 5 million tonnes of output within four years (2011–2014).

The integrated nature of plant operations is also contributing to in-country value (ICV) capture, according to the director. “Jindal Shadeed is, in essence, an integrated steel plant. Direct reduction iron (DRI), which is fed as Hot Direction Reduction Iron (HDRI) to the Steel Melt Shop (SMS) is also produced within the complex. With the installation of the rebar mill, the billets required as feedstock for the mill, will be produced in the Steel Melt Shop. 

Thus, the product of one unit serves as feed for another unit, thereby contributing to In-Country Value (ICV),” Ansari added.

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