Emirates Steel launches tender for plant Phase 3

Emirates Steel is part of the wider industrialisation drive in Abu Dhabi.

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Emirates Steel is inviting bids for construction work on the third phase of its plant expansion, setting a deadline of December.

The UAE’s largest integrated steel producer said the next phase will comprise a steel melting plant, a hot rolled coil mill and ancillaries that will manufacture products aimed at the downstream industrial market.

The third phase has already drawn interest from international contractors, according to Suhail Mubarak Musallam Athaeeth Al Ameri, chairman, and is expected to be completed within 30 months, with commercial production of hot rolled coils anticipated in mid-2014, adding an additional production capacity of 1.6 million metric tons per annum (MTPA).

The development adds to Emirates Steel’s first two phases of expansion – which have cost AED 9m, according to the company – and the company plans to bring on line new rolling mills, steel manufacturing and direct reduction plants, together with a heavy and jumbo sections mill, by the end of the year. The new plants increased the company’s rolling output capacity from 650,000 MTPA to approximately three million MTPA at present.

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Emirates Steel, a subsidiary of General Holding Company’s (GHC) Abu Dhabi Basic Industries Corporation (ADBIC), is based in the Industrial City of Abu Dhabi (ICAD) and represents the capital’s main investment in steel production within the wider government plan to boost industrial output. Last year the company posted a 17.5% rise in production and 120% rise in sales.

This year the company has signed a Memorandum of Understanding with Etihad Rail, the developer and operator of what will be the emirate's first national rail system.

Al Ameri added that GHC is planning an industrial sector in the emirate, primarily focusing on heavy industries, such as iron and steel, aluminum, copper, rubber and other industries.

“We are looking at real investment opportunities in the manufacturing of new products that will add to the company’s competitive advantage and promote it to international standards,” Al Ameri said. “We are certain that the projects we are currently implementing are feasible, in view of the development of various sectors in Abu Dhabi, and the determination of the government to execute its development plans, which include mega projects in energy, oil and gas, petrochemicals, and infrastructure.”

Now ten years old, the company is also at the forefront of the ‘Emiratisation’ drive of the country, with currently 62% of positions at the company taken by UAE nationals.