 |
 |
|
IIB Steel Company Limited
In March 2007, International Investment Bank (IIB) through its SPV IIB Steel Company Ltd (ISCL-I) successfully completed the acquisition of a 35% equity stake in Universal Rolling W.L.L. (IIB STEEL COMPANY LIMITED ). IIB STEEL COMPANY LIMITED is a company established in the Kingdom of Bahrain to manufacture 170,000 tons per annum of reinforcement steel bars of various sizes. For this purpose, IIB STEEL COMPANY LIMITED has constructed an industrial facility in the Hidd industrial area in Bahrain. This facility will be the first Thermo Mechanical Treatment ("TMT") reinforcement steel rolling mill in Bahrain.
IIB successfully raised the requisite capital for the deal and currently the deal is in its post acquisition stage. Significant progress has been observed since raising the equity such as:
- All civil infrastructure work including the finalizing of flooring has been completed by the civil team.
- All mechanical work including erection of bar handling area, installation of cooling bed and binding equipment as well as setting up of reheating furnace has been completed.
- All main electrical control panels are in place and connection with the Hidd Power Plant for power supply is in place.
- Water complex including pumps, cooling towers and pipe connection to the mill are complete. The Reserve Osmosis (R.O.) and water source are in place.
- All works related to the gas receiving station have been accomplished and gas connections to the furnaces are in place. Natural Gas supply has been sourced through BAPCO.
- The Management and the required labor and technical staff for the operation of IIB STEEL COMPANY LIMITED have been hired. IIB STEEL COMPANY LIMITED , as of December 2008 has 102 employees on its payroll.
- An agreement has been signed with TUV Nord for ISO consultancy, training and certification. IIB STEEL COMPANY LIMITED is expecting to receive quality control certifications from the UK based CARES, the process for which has already initiated.
- Shariah Compliant financing amounting to USD 24.0 Million has been obtained from Bank Muscat International (BMI) of which USD 9.0 Million is being utilized for working capital requirements such as spares and consumables. A USD 15.0 Million LC Financing facility to fund two shipments of steel billets has also been secured.
- Currently additional financing of around USD 26 MM is being negotiated with Bank of Bahrain and Kuwait (BBK). This facility will be used to make repayments to BMI as well as to purchase billets to increase the production levels to optimum levels.
- Company started commercial production of reinforcement steel bars back in the first quarter of 2009. However, currently the production level is single shift at around 30% of the total capacity. Full capacity 2nd shift is expected to start after debt finalization.
« « Existing Investments
|
|
|
|
|
|
|
|
 |
|
|
 |
|
|
