Tanmiya Steel Company, a Jordanian offshore holding company, is the 100% owner of Al Anma’a Steel, an Iraqi registered company that is building a steel factory in Iraq to produce steel billets and rebar that are used in the construction industry. AIG acquired a 51% stake in Tanmiya given its future potential due to the demand for construction steel in Iraq as the country rebuilds and rehabilitates its infrastructure. AIG expects this acquisition to materially contribute to our industrial diversification and profitability starting 2012 when the factory is expected to be in operation.
Al Anma’a Steel is currently constructing a modern steel smelting plant equipped with the latest production technology in the south of Iraq. The plant will have a melt shop capacity of 435,000 tons of steel billets, which can be increased with a reasonable incremental investment. The rolling mill will have a capacity of 300,000 tons of construction steel rebar from 8 mm to 42 mm diameter according to ASTM A615 Grade 60. The excess steel billet of 112,000 tons per year can be sold to local rolling mills or exported to the Gulf or Iran.
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