Emirates Steel, the largest integrated manufacturer of steel in the UAE, yesterday showcased its product range at the 30th edition of the Big 5 Exhibition to benefit from its business and networking opportunities for the construction industry.
Emirates Steel is a direct subsidiary of Abu Dhabi Basic Industries Corporation (ADBIC) which is, in turn, wholly-owned by GHC. Strategically located in the Industrial City of Abu Dhabi (ICAD), some 35 kilometers away from the heart of the city of Abu Dhabi, Emirates Steel is the only integrated steel plant in the UAE, utilizing the latest rolling mill technology to produce reinforcing bar and wire rod.
Established in September 2006, Emirates Steel acquired the assets and business of Emirates Iron and Steel Factory (EISF) in January 2007. Following the completion of Phases 1 and 2 expansion programs, the Company has an output capacity of 3 million MTPA.
“The many strategic alliances that the Company is establishing with leading technology providers, coupled with its state-of-the-art facilities and highly-experienced and committed workforce, will enable Emirates Steel to maintain its position at the forefront of the industrial sector in the Emirate,” said Mr. Mubarak Al Khaili, Emirates Steel’s VP of Commercial Strategy at the event.
Whilst the original business model was relatively simple, a re-roller of imported steel billets, today Emirates Steel operates a complex integrated manufacturing plant using modern solutions to tackle traditional industrial problems to generate value for its various stakeholders.
“Our underlying business goal is to be an efficient and competitive producer of finished steel products. The Company is making significant investments in processing, manufacturing and information technology to improve these efficiencies, all of which positively affect the Company’s financial performance and support the Company’s growth objectives. At the same time, many of these investments are also helping to improve product and service quality, to reduce the Company’s environmental footprint and to increase safety for its workers and its customers,” he added.
With sustainability at the forefront of Emirates Steel’s development, the Company is working closely with Masdar (the Abu Dhabi Future Energy Company), a multi-faceted company advancing the development, commercialization and deployment of renewable energy solutions and clean technologies, to become one of the first steel producer in the world to sequestrate Carbon dioxide (CO2 ) on a large scale.
We are currently implementing a comprehensive business development plan,” he pointed out. Once complete, the Company will be one of the largest and most competitive integrated steel producers in the Gulf Cooperation Council (GCC) region. The Company is evolving from its roots of being a simple and relatively low value-added processor of steel into a sophisticated, highly productive manufacturing business with a high added value business model. Furthermore, it will be among the few regional steel producers with a diversified product range, including rebar in both straight and coil form, wire rod, sections, plate, seamless pipe, longitudinally welded pipe, hot rolled coil and semi-finished products, such as billets and direct reduced iron.
With a view to achieve the strategic ambitions set by GHC and the Government of Abu Dhabi, Emirates Steel has initiated an expansion program based on a phased approach: In January 2006, the Company launched its Phase 1 Expansion program involving the purchase and construction of a 1.6 million MTPA Direction Reduction Plant (DRP), a 1.4 million MTPA Steel Melt Plant (SMP), a 0.62 million MTPA Rebar Rolling Mill (RM2), a 0.48 million MTPA Wire Rod and Coil Rolling Mill (RM3), together with associated infrastructure and facilities.
In February 2008, Emirates Steel launched its Phase 2A Expansion program comprising a 1.6 million MTPA DRP, 1.4 million MTPA SMP, and associated infrastructure and facilities. And in November 2009, the Company launched its Phase 2B Expansion program comprising a 1 million MTPA Heavy Sections Rolling Mill (RM4). Phase 1 was successfully completed in June 2009; Phase 2A was completed in 2011 and Phase 2B will be complete in early 2012. For further growth, Emirates Steel is considering a number of potential Greenfield investment opportunities and acquisitions, concluded Mr. Al Khaili.