By Andy Sambidge
Company chairman says contracts for new plant, mill are likely to be awarded by December
Emirates Steel, the integrated steel producer in the UAE, on Monday said it has invited companies to bid to work on phase three of its expansion project.
The contracts for the next phase are likely to be awarded by December, Emirates Steel's chairman, Suhail Mubarak Musallam Athaeeth Al Ameri, said in a statement.
Launched almost five years ago, the project is a key part of Abu Dhabi's 2030 Plan, which aims to grow the industrial sector in the emirate.
Al Ameri said phase three will comprise a steel melting plant, a hot rolled coil mill and ancillaries, which will primarily service GCC demand for products.
The company has already completed a two-phased expansion programme costing approximately AED9bn, with facilities due to come on stream by the end of the year.
The new plants have increased the company's rolling output capacity from 650,000 metric tonnes per year to about three million.
The chairman said the third phase was expected to be completed within 30 months from contract award, with commercial production anticipated in mid-2014.
He added that he expects an estimated 2,000 additional jobs for UAE nationals will be created once the three phases of the project are complete.
Emirates Steel, a subsidiary of General Holding Company’s Abu Dhabi Basic Industries Corporation (ADBIC), last year posted a 17.5 percent rise in production and 120 percent rise in sales.
This year the company has signed a memorandum of understanding with Etihad Rail, the developer and operator of the emirate's first national rail system.