Construction of first steel plant in Hudaida begins

HUDAIDA, Jan. 07 (Saba) - The Chinese-Yemeni Steel Company ' Star'
has already started the construction of the first steel plant in the
industrialized zone in Hudaida province.

The project which would be implemented in three phases will cost $
75 million.

The company started in November implementation of the first phase of
the project which included the setting up of concretes of the plant
and residential complex that covers 194 thousand square meters,
director of the Industrial Zone in Hudaida Abdullah al-Bukari said.

The cost of the first phase is estimated at $ 25 million and the
plant will produce during his phase 200 thousand tons of steel a
year.

The project would be launched officially in May providing jobs for
300 Yemenis and 100 foreigners.

The 13 megawatt-electricity station which would be used to operate
the plant will arrive in Yemen during this month.

At the second phase of the project, the plant will produce 400
thousand tons of steel a year and by 2010 after the three phases of
the project complete the plant is expected to produce 1 million tons
annually.

As we find the project shows success, other Yemeni-Chinese
companies would be set up that will produce foods, phones and
electronics, Chinese executive director of the project Yang Shumen
said.

The Yemeni-Chinese Steel Company, in which China holds 80 percent,
obtained in July a license to establish the plant at the Industrial
Zone in Hudaida province.

FR