Nippon takes stake in Al Ghurair Iron & Steel
Dubai, November 17, 2011
Japan’s Nippon Steel Corporation (NSC), one of the biggest steel makers in the world, has taken a key stake in the UAE-based Al Ghurair Iron & Steel (AGIS), a subsidiary of the Al Ghurair Group.
AGIS, located in the Industrial City of Abu Dhabi (ICAD), is the first steel cold rolling and galvanizing complex in the UAE.
“NSC has signed an agreement for equity investment in AGIS through a share transfer by which, NSC is to secure 20 per cent of voting rights in AGIS, with AGIS becoming an equity method affiliate of NSC for accounting purposes,” said a statement.
The value of the deal was not revelaed.
Al Ghurair Group, through its investment company SAG Investments & Trading, now holds 80 per cent shares in AGIS.
The formal agreements were signed by Majid Saif Al Ghurair, managing director, SAG Investments & Trading and Shinya Higuchi, managing director, NSC, in Dubai.
The agreement aims to combine the strengths of NSC and AGIS, by leveraging NSC’s technical strengths and global network and AGIS's local industry and market expertise to deliver high quality galvanized steel in a very cost effective and efficient manner to customers in the region, the statement said.
'NSC's technical strengths and resources will be of great benefit particularly during our upcoming expansion program to double our galvanizing capacity,” said Abu Bucker Husain, CEO.
“AGIS and NSC share a clear focus on delivering superior quality products to their customers as well as having s strong commitment to employee safety and protection of environment. Additionally, the combination of the companies’ global and local strengths will ensure a consistent supply of high quality raw material for our operations.”
The new Board of Directors of AGIS comprises Majid Saif Al Ghurair, Ahmed Husain Lafir, Saeed Saif Al Ghurair, Abu Bucker Husain and Hideki Ogawa. Majid Al Ghurair continues to be the chairman of the board. There will be no change in the day-to-day management of the company and Abu Bucker Husain shall continue as the chief executive officer.
The company commenced commercial production in 2009 with a pickling-line, a cold-rolling mill, and a galvanizing-line. Since the first year of commercial production, AGIS has achieved a high level of operation and sales, by taking advantage of its location in the UAE as an international physical distribution base while expanding its customer network in the market of flat steel products applied to construction in the Middle East, North Africa (Mena) and West Asia.
HCF International Advisers Limited (Formerly Hatch Corporate Finance) team, led by Rama Ayman, was the exclusive financial adviser and Dewey & LeBoeuf LLP was the legal counsel to AGIS in this deal while Freshfields was the Legal counsel to Nippon Steel. – TradeArabia News Service