Emirates Steel is a wholly owned government organisation and is part of one of the largest industrial conglomerates in the Middle East who are a driving force for implementing the local government’s industrial diversification policy.
Established in the late 90s, the Company grew in a relatively short period of time from a simple re-roller UAE supplying reinforcing bars to the construction industry to a complex integrated manufacturing plant, using modern solutions to meet market demand and to generate value for its various stakeholders.
Through its Phase 1 Expansion, the Company increased the capacity for production of reinforcing bars and added wire rod to its product range. Phase 1 also exploited the availability of natural gas to establish a fully integrated steel works using iron oxide pellets as the main raw material. Phase 1 manufactured billets for the bar and rod rolling mills, relying on purchase billets for a small proportion.
The subsequent Phase 2 Expansion expanded liquid steel capacity by a further 1.4 million tonnes per annum and introduced large and heavy sections into the company product range, for use by the construction and manufacturing sectors. Phase 2 was a fully integrated facility including a new Direct Reduction Plant, Electric Arc Furnace, Combination Billet and Beam Blank Caster, Heavy Section Rolling Mill and associated ancillary equipment. The facility is able to cast near-net-shape beam blanks, blooms and billets for the Heavy Section Mill (HSM) and billets for Phase 1 rolling mills.
On completion of Phase 2, the ESI has a total nameplate annual production capacity at its Mussafah works of:
- Direct Reduced Iron (DRI) - 3.2 Mt/y, being enhanced to 4.0 Mt/y
- Steelmaking - 2.8 Mt/y of liquid steel, being enhanced to 3.2 Mt/y
- Bar and Rod Rolling (Phase 1) - 2.0 Mt/y
- Heavy Section Rolling (Phase 2) - 1.0 Mt/y
McLellan successfully provided Project Management Services for the complete Phase 2 expansion project, namely:
- Preparation of tender documents suitable for international competitive tendering
- Pre qualification of suitably qualified and capable EPC Contractors
- Management of the tender process from issue of tenders to point of order placement; including technical bid analysis and technical equalisation
- Preparation of Engineering Standards to promote standardisation and minimum quality requirements
- Review of Contractors designs to ensure overall completeness and compliance with the Contract and Engineering Standards
- Check and approval of any design variations proposed by the Contractors
- Implement all necessary project controls, including
management of all documents and correspondence
- Management of Contractor’s activities in compliance with safety, environmental and other statutory regulations
- Monitoring and reporting progress against programme for civil, mechanical, electrical and automation activities
- Integration engineering of following non EPC work
- Natural gas receiving station
- 220 kV cabling
- Iron ore unloading hopper
- Main ancillary building concept design
- Management and resolution of all technical queries
- Management of all on site health and safety matters, including safety audits, site inspections and non conformance follow-up
- Manufacturing surveillance, inspection, witness testing and packing of plant and equipment prior to delivery to site
- Periodic determination of the work done on site to verify and certify the Contractors invoices for payment
- Monthly Reporting of progress and activity on all areas to the Client
- Development overall spare parts requirements and lists.
McLellan was also appointed to:
- Co-ordinate provision of “as-built” drawings, information and operating/maintenance manuals
- Supervise the handover of spare parts by the Contractors
- Co-ordinate the identification and resolution of all defects, deficiencies and shortages
- Prepare detailed procedure for the testing, commissioning and putting to work of the plant and equipment
- Provide start-up management to co-ordinate the commissioning activities
- Verify that the guaranteed performance levels have been met.