Abu Dhabi’s Emirates Steel opened the Dh7 billion Phase 2 expansion program which has soared its output to 3.5 million metric tons per annum, making it one of the biggest integrated steel maker in the region.
At an event at the plant in the Industrial City of Abu Dhabi, Hussain J. Al Nowais, GHC Chairman, told reporter that he now eyes to expand production to 5.5 million metric tons in the third phase in the three years, which may cost another $1 billion.
Emirates Steel launched the two-phased, Dh10 billion expansion program in January 2006
Emirates Steel launched the two-phased, Dh10 billion expansion program in January 2006, completing Phase 1 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 said that the steel maker will achieve 100 per cent production capacity at the turn of the year.
He denied getting any subsidy or state funding, as “our earnings are good we have a strong cash flow.” And due to these factors, Emirates Steel meets the criteria for an IPO, may be three years down the road, the chairman GHC said.
With the second phase, Emirates Steel has become the leading producer of reinforcing bars (rebar)
Al Nowais said his products compete with imported ones in the marketplace, without getting any preferential treatment, even in Abu Dhabi where huge projects were being built. Engineer Suhail Mubarak Athaeeth Al Ameri, Emirates Steel Chairman and CEO of GHC, said with the second phase, his company has become the leading producer of reinforcing bars (rebar), and is recognized as one of the foremost wire rod producers in the GCC.
Al Ameri said that the steel industry has seen staggering growth in light of the quickening pace of Abu Dhabi’s development and construction.
“With the growing number of projects in the GCC and its emerging infrastructure, they require a bulk supply of material to hasten their completion,” added Al Ameri. Engineer Saeed Ghumran Al Romaithi, Emirates Steel CEO, said: “The company is now the sole producer of jumbo and heavy sections in the Mena region.”