Emirates Steel inaugurates $1.9bn expansion
Production boosted to 3.5 million metric tons per annum
Emirates Steel, the only integrated steel plant in the UAE, has inaugurated the completion of its AED7bn ($1.9bn) phase two expansion program.
The firm, owned by General Holding Corporation (GHC), now has the capacity to produce nearly 3.5 million metric tons per annum (MTPA) and becomes the only producer of jumbo and heavy sections in the Middle East.
The development is part of Emirates Steel's goal to achieve 5.5 million MTPA within the next three years and brings the total cost of the two-phase investment to AED10bn ($2.27bn).
HE Suhail Mubarak Athaeeth Al Ameri, Emirates Steel chairman and CEO of GHC, said demand for heavy sections in the MENA region continues to soar. Currently, the region uses 5.5 million MPTA, but this is predicted to rise to 8.6 million MTPA in 2020.
“Phase two has elevated our stature in the industry for being able to provide a more cost-effective, flexible and sustainable solution to concrete, which has proved invaluable to local and regional markets,” said Al Ameri.
“With the growing number of projects in the GCC and its emerging infrastructure, they require a bulk supply of material to hasten their completion. Our heavy section mill now rivals the most advanced in the world, positioning Emirates Steel at the centre of excellence for the effective use of structural steel in construction.”
Engineer Saeed Ghumran Al Romaithi, Emirates Steel CEO, said the firm’s expansion had created over 2,000 jobs in the country, with its workforce now made up of 25% UAE nationals.
The expansion programme started in June 2008 and the latest additions mean it now boasts a one million MTPA heavy sections rolling mill, a 1.6 million MTPA direct reduction plant (DRP), and a 1.4 million MTPA steel melt plant (SMP).
The phase two DRP and SMP are sister plants to phase one assets, a project which was started in 2006 and completed in 2009 at a cost of AED3bn ($816m), making Emirates Steel the largest steel plant in the UAE.
Before phase two came online, the firm was already a leading producer of reinforcing bars (rebar) and wire rod in the GCC, and made and sold direct reduced iron as a semi-finished product.
HE Hussain J. Al Nowais, GHC chairman, said the rise of the firm has always been in line with the Abu Dhabi Economic Vision 2030 – which maps out the government’s long-term plans for the diversification and development of the emirate’s economy.
“Each studied step has been made to ensure that we grow in parallel to the sustainable economy of Abu Dhabi, making provisions for global competitors within the emirate’s borders. As such, our ambitions run far and wide to become the leader in our area of expertise and in turn reduce reliance on the world for imports.”
The company has also launched a new logo and identity to coincide with the plant's inauguration.