Emirates Steel completes $1.9bn expansion project
Abu Dhabi, September 26, 2012
Abu Dhabi-based Emirates Steel, the only integrated steel plant in the UAE, has announced the completion of its Dh7 billion ($1.9 billion) phase II expansion project besides unveiling a new identity and logo to match its 'new path of excellence.'
A direct subsidiary of Abu Dhabi Basic Industries Corporation, Emirates Steel said the expansion demonstrated the high level of support its paarent firm General Holding Corporation (GHC) was lending to the industrial sector in Abu Dhabi.
Speaking at the launch event held at the Industrial City of Abu Dhabi (ICAD1), GHC chairman Hussain J Al Nowais said the phase II has boosted Emirates Steel’s total production capacity to 3.5 million metric tons per annum (MTPA).
He said the project development is part of a massive plan to increase Emirates Steel’s production to around 5.5 million MTPA within the next three years.
Emirates Steel had launched the two-phased Dh10 billion expansion program in January 2006, completing the first phase in June 2009 at a cost of Dh3 billion, more than doubling production capacity and making it the largest steel plant in the UAE, capable of manufacturing raw steel from iron oxide pellets.
Al Nowais pointed out that with the completion of the project, Emirates Steel will become one of the largest steel complexes of its kind in the region.
"The meteoric rise of the company 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," he remarked.
"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," he added.
Emirates Steel chairman and GHC chief executive Suhail Mubarak Athaeeth Al Ameri said, "Having secured quality system certification to British standards, Emirates Steel is a quality certified steel producer, which has demonstrated a track record of sound operating performance. This legacy lives on into the Company’s future."
Emirates Steel, he stated, was the leading producer of reinforcing bars (rebar), and recognized as one of the foremost wire rod producers in the GCC.
Besides the Company’s finished rebar, wire rod and sections; Emirates Steel also has the capacity to produce and sell Direct Reduced Iron as a semi-finished product, he added.
Al Ameri pointed out that the steel industry had seen staggering growth in light of the quickening pace of Abu Dhabi’s development and construction.
“Steel production has been invaluable to the emirate’s progress, not only in supporting rapid construction but in accelerating the growth of non-oil based gross domestic product, which further serves economic diversity,” he added.
He said the demand for heavy sections in the region continues to skyrocket, currently translating to 5.5 million MTPA and this figure is predicted to increase to 8.6 million MTPA in 2020.
“With the growing number of projects in the GCC and its emerging infrastructure, they require a bulk supply of material to hasten their completion," stated Al Ameri.
"Our heavy section mill now rivals the most advanced in the world, positioning Emirates Steel at the center of excellence for the effective use of structural steel in construction,” he added.
Emirates Steel CEO Saeed Ghumran Al Romaithi said the company is now the sole producer of jumbo and heavy sections in the Mena region, which will offer improved products and drastically reduced lead times in terms of piece count and cut-to-length services”.
Al Romaithi said that Emirates Steel expansion has both directly and indirectly created over 2,000 jobs in the country; in parallel, many high profile technical jobs opportunities have opened up for Emiratis. The company’s workforce comprised 25 per cent UAE nationals.
On the revamped logo, Al Romaithi said it incorporates both Arabic and English – in vibrant blue, representing both local and international domination.
"The new colour symbolizes the company's energy and dynamism. This appears alongside a Woolmark-shaped symbol sketched with lines that run in parallel to form two of the most ancient chemistry symbols representing iron and carbon, the two elements that make up steel. The unique mark unites the two to form a new icon of excellence and quality," the official explained.
Ultimately, the new branding represents Emirates Steel’s matured identity – one that has grown exceedingly strong and continues to bring immeasurable achievements with the aim of remaining a leading manufacturer and supplier in the steel industry, he added.-TradeArabia News Service