Emirates Steel

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 kilometres 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 EISF in January 2007. Following the completion of the Phase 1 expansion program, the Company has an output capacity of 2 million MTPA. On completion of Phase 2, capacity will reach 3 million MTPA in 2011.

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.

Emirates Steel’s 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.

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.

Emirates Steel is currently implementing a comprehensive business development plan. Once complete, the Company will be one of the largest and most competitive vertically integrated steel producers in the Gulf Cooperation Council (GCC) region. 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.
• 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 the first quarter of 2011, while Phase 2B is expected to be complete in early 2012.