Oman’s plans to set up a 2.5-million-tonne per annum steel plant in Sur have been put on hold, due to the sluggish steel prices in global markets and the economic slowdown caused by the slackness in oil prices, said a report.

The company’s plan was to use direct reduction iron (DRI) and scrap metals on a certain portion for the manufacturing process to annually produce 2.5 million tonnes of special steel and rebar for both domestic consumption and exports, added the Times of Oman report.

“It is not taking off (now) because of the recession. People are not investing in steel,” said P T Sivarajan, director of operations at Sun Metals, which was to build the factory.

Sivarajan noted that the company has already returned the industrial land, which was set aside for building the factory, to the Public Establishment for Industrial Estate (PEIE), added the report.