As the leader of two international consortia, VAI has received an order from Hadeed (Saudi Iron and Steel Co.), Saudi Arabia, for the enlargement of hot metal and steel-producing capacity at its Al-Jubail complex.

The order involves what will be the world’s largest Midrex technology based direct reduction (DR) plant, with a capacity of 1.75 million tonnes per year. In addition, annual production capacity of an electric steelmaking plant will be expanded by a further 1.22 million tonnes. The two plants are to be completed by VAI on a turnkey basis together with comprehensive automation solutions (Level 1 – Level 3). The orders are valued at over EUR 300 million.

As a result of the expansion, existing liquid steel production for flat products will more than double. In order to accommodate this increase, the existing hot rolling mill is also to be modernized; this order had previously been allocated to VAI in July 2004.

According to Gerhard Falch, the VAI Chairman and Deputy Chairman of VA Tech, another special feature of this latest order from the company’s long-term Saudi customer, is the fact that, “For the first time, the sponge iron produced in the DR plant is to be hot charged to the downstream steel plant through direct transport at a temperature of 600°C. This procedure provides sizeable energy savings and a further production rise.”

Start-up of the new plants is planned for the end of 2006 and the beginning of 2007.

Voest-Alpine Industrieanlagenbau (VAI), a company of the listed VA Technologie AG, is one of the world’s leading engineering and plant-building companies for the iron, steel and aluminum industries with a multinational company structure and special focus on technology, automation and services. VAI achieved total sales of 976 million EUR in 2003 and employs approximately 3400 people worldwide.