Emirates Steel Expands to 3.5 Million Tons Per Year

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The $1.9 billion, Phase II expansion at Abu Dhabi-based Emirate Steel's integrated steel plant in the United Arab Emirates (UAE) is expected to raise the company's total annual production capacity to 3.5 million tons.

General Holding Corporation (GHC) chairman Hussain J. Al Nowais said that the expansion project is part of a massive plan to increase Emirate Steel's production to about 5.5 million tons a year within the next three years. The steel company is a direct subsidiary of GHC.

The two-phased, $2.7 billion expansion plan was launched in 2006, and the first $830 million phase was completed in June 2009, more than doubling production capacity and making it one of the largest steel complexes in the UAE with the capacity to manufacture iron oxide pellets.

"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," Al Nowais said.

The company has secured quality system certification to British standards and has demonstrated a track record of sound operating performance, said GHC CEO Suhail Mubarak Athaeeth Al Ameri. The company was the leading producer of rebars and a leading wire rod producer in the Gulf Cooperation Council (GCC). The company also has the capacity to produce and sell direct reduced iron as a semi-finished product, he added.

The demand for heavy sections in the region continued to skyrocket, currently translating to 5.5 million tons per year, and this figure is expected to increase to 8.6 million ton in 2020. A bulk supply of material to support the growing number of infrastructure projects in the GCC was required, Al Ameri said.

The expansion project has created a total of 2,000 direct and indirect jobs and has opened up many high profile technical job opportunities. The company's work force employs 25% UAE nationals.

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