UAE Steel Industries to Triple Production Through 2014

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Researched by Industrial Info Resources (Sugar Land, Texas)--Steel production in the United Arab Emirates (UAE) has reached 10 million tons per year to supply the estimated 4% yearly growth rate in the construction industry. Emirates Steel Industries (ESI) (Abu Dhabi) has applied for a seven-year, $1.1 billion loan that will be used to expand its output to meet with local demand of $1 trillion worth of infrastructure projects that are in the pipeline.

ESI is government-owned factory strategically located at the recently developed Industrial City of Abu Dhabi (ICAD). The factory is the largest steel plant in the UAE, utilizing the latest rolling mill technology to produce rebar for the construction industry.

ESI, which has a current annual production capacity of 2 million tons, intends to increase its capacity to 3 million tons by 2011 and to 6 million tons by 2014 by investing $2.45 billion via two project phases with a plan to divide the last phase into two parts: Phase II-A and Phase II-B.

The first phase will include a direct reduction plant (DRI) operating at a capacity of 1.6 million tons per year, a 1.4 million-ton-per-year steel melt plant and rolling mills. The second phase will include the second DRI plant and a steel melt plant as planned through Phase II-A, plus the 1 million-ton-per-year sections rolling mill in Phase II-B.

The first phase was successfully completed in June 2009, while Phase II-A is scheduled to be completed in 2011, and Phase II-B by 2012. ESI is located in the Mussafah Industrial Area, 35 kilometers south of Abu Dhabi city and began producing commercial rebar in October 2001.

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