Moroccan Steel Industry Overview (2000)

SONASID JORF LASFAR FLEXIBLE BAR AND SECTION MILL, MOROCCO

Moroccan bar and rod producer St Nationale de Sidrurgie (Sonasid) placed an order with Italian plant maker Danieli and Danieli Engineering for a new flexible bar and section mill at its Jorf Lasfar mill near Casablanca.

MARKET RATIONALE

Sonasid already operates two steel plants, located in the northern area of Nador and in Casablanca, with a combined total capacity of 700,000 tonnes/year. The new mill will add a further 400,000 tonnes/year to overall capacity and will enable the company to fulfill the local market demand, as well as the requirements of the neighbouring countries. Sonasid will predominantly supply the domestic market but is also looking to export a small amount of its rebar to neighbouring countries.

PROJECT TIMESCALE

The initial planning for the project commenced back in January 2000 when the initial invitation to tender was offered. Construction of the mill should begin in the first half of 2001, and operations are already underway to prepare the land for work to begin. Commissioning is expected to take place in January 2002 and commercial production should begin at the mill by mid-2002 if all goes as planned.

PLANT PRODUCTION AND COST

In August 2000, Danieli and Danieli Engineering were awarded the order for the design and construction of the new Sonasid flexible bar and section mill turnkey project. The award is valued in the region of $40 million.

In October 2000 Sonasid opened the bidding for construction of the metallic structure for the new 300,000 tonnes/year steel plant. This is a separate contract to the Danieli contract. Both local and international companies are expected to bid for the 4,000-5,000 tonne metallic structure, which is a six-month contract valued to be in the region of $3 million.

When fully operational, the mill will be fed with billets imported mainly from France, the CIS and Turkey. The new plant will produce more than 400,000 tonnes/year of 8 to 40-mm-dia plain and deformed bars, angle bars up to 60-mm and corresponding channels, as well as flats and T-bars.

The 18-stand mill, entirely made up of heavy-duty SHS Star Housingless Stands in horizontal, vertical and convertible configuration, will be fed by 130x130 mm, 12 metre long billets heated up in an 80-tonnes/hour Danieli Centro Combustion Walking Hearth reheating furnace.

Danieli Automation will supply electrical and automation systems for the plant as well as the controls for all auxiliary systems. Danieli's scope of work includes supply and installation of the whole equipment, auxiliary plants, auxiliary services and civil works on a turnkey basis.

JORF LASFAR IDLING

The construction of the new bar and section mill could result in the 90,000 tonnes/year rebar mill at Jorf Lasfar being idled. The company has still not decided what it will do, but noted that the mill is old, so closure is a possibility.
Meanwhile a feasibility study is currently being undertaken for the installation of an electric arc furnace at the Jorf Lasfar plant in order to reduce the company's dependence on imported billets.

LEAD CONTRACTOR

The Danieli group is based in Italy but has diversified subsidiaries plotted around the globe. The company designs and manufactures machinery and plants for the steel industry.

COMPANY OWNERSHIP

Spanish billet and bar producer, Marcial Ucin, which is an 8.5% minority shareholder in Sonasid, was recently bought by the Aceralia group. As a direct consequence Aceralia is now a minority shareholder in the company. However Sonacid officials have stated that this will have no effect on the recent investment plans.

Source: Steel-technology

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SONASID JORF LASFAR FLEXIBLE BAR AND SECTION MILL, MOROCCO (2000)

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