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  • 12-10-10

    Bahrain's Foulath to takeover Saudi rival

    (MENAFN) The Vice Chairman of Foulath, Bahrain's biggest steel firm, said that the company is planning to take over a Saudi rival by next month as it pushes on with an expansion effort, Reuters reported. Foulath's acquisition reflects its strategy to control every link in the steel supply chain, from iron ore mines to the output of finished products, all with a view towards lowering its costs of production in a continued down market, the official said. Foulath's cost advantage, reflecting the lower cost of energy and transport in the region, was applicable to other GCC-based steel producers, he said. Foulath already controls 55 percent of the MENA market for steel pellets, a raw material used in steel mills, after starting up an expansion plant in January, he added. The company plans to build additional pellet plants in Alexandria, Egypt, and in Salalah, Oman, in partnership with local investors, according to the official.

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