|Hadeed Hama to boost meltshop capacity up to 400.000 tpy
|Syria - 2007 April 5
The state-owned General Company of Iron and Steel Products (Hadeed Hama) in Syria is planning to increase its melt shop production capacity up to 400.000 tons per year against 70.000 tons per year production in 2006. Financing of this development process will be made by loan from India.
Hadded Hama company is the only company in Syria, which has a meltshop for melting scrap, which is used to cover the requirements of its rebar mill, the production of which in 2006 was a little bit more than 70.000 tons per year, according to authorized sources in the company.
Besides, it is worth noting that the controlling authorities of this development process have chosen implementation of plans in stages and proposed first stage as developing the melt shop by Indian loan, which amounts to USD25 million.
In 2006, the decision for investing in this company by the Austrian Hares Group, which offered USD53 million to develop the company's mill over 15 years has been abandoned.
It is expected that a tender announcement will be published to develop the company's melt shop. It is also expected that Indian companies will be the only candidates to participate in this tender because the Indian loan was transferred for the development of four mills which Hadeed Hama owns: the melt shop, reinforcing steel mill, steel pipes mill and a fourth mill to produce forgings.
The development plan targets increasing the present production capacity of the melt shop, be it to satisfy the requirements of the reinforcing steel mill affiliated to the company or to satisfy the requirements of the existing mills in Syria belonging to the private sector, the present number of which exceeds five mills importing their requirements of billets from the world markets.
Furthermore, Hadeed Hama company has achieved net profits of 346 million Syrian Pounds in 2006, equivalent to 6,9 million US dollars derived from total sales of 3.1 billion Syrian Pounds, equivalent to 59.4 million US dollars.