Korean firm Posco Engineering & Contracting has signed a $400mn contract to build a steelmaking and rolling mill in Oman with Sun Metals.
The deal was announced in May this year, but a signing ceremony has just been held at Posco’s headquarters in Songdo, South Korea, that was attended by representatives from Posco, Sun Metals and Japan’s Sojitz Machinery, which is suppying much of the kit for the plant.
It will be based at the Sur Industrial Complex in the north east city of Sur and will be capable of manufacturing 2.5mn tons of billet, steel bar and special steel.
The plant is expected to take 30 months to build.
Posco has said that the project will offer it and other Korean construction firms the chance to extend their steel plant projects across the Middle East.
The firm said that steel mills in the region had previously largely been built by firms from Europe, but that it expects to grow its footprint in the region.