Market surveys indicate that a significant increase in future demand for flat rolled products should be expected.

This fact instigated a multi-stage process for expanding production over a period of several years at Hadeed.
The first step in the initiation of this project was started at the beginning of 2000, whereby a task force, gathered from Sabic's various companies and departments, formed a team to carry out strategic studies and assessments of the Flat Products Facility (FPF).
The resulting comprehensive survey covered all areas of Flat Rolled Products: The Melt Shop (Steel Plant and Casting Machine); The Hot Strip Mill (HSM); The Cold Mill Complex (CMC)
The aim of the survey was to assess the existing production capabilities, the limitations of equipment/production facilities as well as to identify bottlenecks. The objective was to increase production capacity of the existing facilities through two main scenarios:
First, increasing production from 800,0000 to about 1.2 million tonnes per year (tpy), through a minimum investment in existing facilities.
Second, increasing production to about two million tpy.
The survey report of the task force envisioned a future plan for FPF expansion that will be completed through one single main phase, comprised of five expansion stages that include: The ''de-bottlenecking'' of existing FPF facilities;  and an 'integrated expansion concept''.
The plans approved by Sabic and Hadeed for raising production of flat products will be implemented in five stages:

STAGE 1
De-bottlenecking of existing facilities
Maximising production of the HSM from the current 800,000 to 900,000 tpy to one million tpy with a minimum of investment, and increasing mill capacity to produce higher quality steel grades, primarily API pipe grades for 'sour gas' applications, are two objectives.
The HSM production team will resolve existing constraints, e g equipment capabilities, process practices and others, to attain the required production capacity. Since the year 2000 the HSM production team has been engaged in resolving and eliminating existing bottlenecking to approach planned production capacity.
Production is now close to 1.2 million tpy and it is anticipated that by mid-2003 planned production will be attained. The melt is also being upgraded to increase production from its current 800,000 to 950,000 tpy to approach more than one million tpy.
The proposed enhancements in this stage will include a major revamp of the HSM to achieve a production capacity of up to two million tpy, and specific quality enhancements to improve both product quality and product range.

STAGE 2
Enhancement of the Hot Strip Mill
The original design concept for the FPF envisaged a future HSM capacity of 1.6 million tpy. Accordingly, provisions were included in the Mill layout to enable enhancements to achieve this capacity. These provisions include foundations for a second reheat furnace, foundations for a sixth finishing stand; area for a second downcoiler; and provisions for extending the utility and auxiliary systems.
Since future market projections indicate a demand of up to two million tpy, planned enhancements of the HSM comprising utility and auxiliary facilities aim to attain that production figure.
Plans for this stage also cover completion of quality enhancements within the HSM area. Installation of a sixth Finishing Stand at the HSM will allow production of strip gauges below 1.5 mm, while installation of a Hot Skin Pass Mill will enable strip quality corrections to be made.
Installation of new equipment will enable the HSM to approximately double existing capacity. A second Reheat Furnace will be installed beside the existing furnace at the upstream side, and will be of a similar type. The furnace capacity might also be improved during the detailed engineering stage depending on the available space and process requirements. A second Downcoiler will be a stationary type downcoiler installed downstream of Downcoiler No. 1. It will have a similar design to the existing one with certain improvements.
Quality enhancement will benefit from a sixth finishing stand to be installed downstream of Finishing Stand No. 5, and will be similar in design. The sixth stand will increase the capability of the BSM to allow production of 1.5 mm coil thickness, or even less.

STAGE 3
Installation of a New Direct Reduction Iron (DRI)
It is anticipated that the new plant will be similar in design to either the existing MIDREX, i e Modules A, B and C Plants, or the HYL, i e Module 'D' Plant.
The forecast capacity will be more than one million tpy. Selecting plant capacity will depend on the material balance study, which is currently under preparation by the DRI production team.
At present, the Expansion Project Team is communicating with Saudi Aramco and Marafeq to seek the necessary utilities for the future Dill Module. It is expected that supply of the required utilities will be implemented during the start of the project. These utilities will also be required for Stage 4.

STAGE 4
Installation of a Second EAF, a Second LF and a Second Caster Plant (CCM)
A second Electric Arc Furnace (EAF) and a second Ladle Furnace (LF) for the FPF are planned for this stage. The EAF and the LF will be located to the south of the existing Melt. The design and capacity of the second EAF and LF will be similar to the existing ones.
In other words, the second EAF will be operated by three electrodes, with a 150 tonne design capacity. Similarly, the second LF will also be operated by three electrodes (smaller in size than the EAF, but with the same capacity). A second single strand Continuous Casting Machine (CCM) similar in design to the existing one will also be installed.
It is anticipated that the new CCM will be equipped with the technology to process liquid steel to produce slabs for 'sour gas' API for pipe grades applications.

STAGE 5
Quality Enhancement Projects - Vacuum Degasser
Currently, the steel plant produces approximately 900,000 tpy of liquid steel. It is produced in a single 150 metric tonne (tap weight) Electric Arc Furnace (EAF) and then transferred for further treatment to a secondary metallurgical Ladle Furnace (LF), prior to being cast into slabs in a single strand Continuous Caster (CCM).
A Vacuum Degasser system is now planned to enable the production of higher quality steel grades. Initially, the system will be used mainly to process 'sour gas' API pipe grades for the gas and oil industries. However Hadeed intends to eventually sell hot band strips for export. Therefore, the system will have the flexibility to produce automotive ultra-low carbon steel grades.
The Degasser system is designed, as in the first stage, to treat approximately 500,000 tpy out of the total steel plant liquid steel production. However, the design capability of the plant is to treat over one million tpy.
As previously noted, the system will initially process 'sour' gas API pipe grades and also a small quantity of Deep Drawing Quality (DDQ) grades.