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IOSUAE's ZonesCorp inks $138m steel mill deal
Abu Dhabi's industrial development body has announced an AED507 million ($138 million) deal which will see a purpose built steel rolling mill complex being built in its industrial city.
The Higher Corporation for Specialised Economic Zones, known as ZonesCorp, said it has signed an agreement with United Iron & Steel Company for the project.
The construction of the complex is due to start in the second quarter of this year and commercial production by first quarter of 2016.
The mill will have an initial production capacity of 300,000MT per annum, with the intention of ramping up the production to 500,000MT per annum.
A statement said the complex will span 126,000 sq m and will produce galvanised steel coils and pre-painted galvanised steel coils for use in applications such as roofing, cladding, and ducting.
The company said it will supply the UAE, MENA and Europe and will generate employment for approximately 250 people.
Mohamed Hasan Al Qemzi, CEO at ZonesCorp said: "We are delighted to welcome the United Iron and Steel Company as a Zonescorp partner. The state of the art complex will be a strong addition to our existing cluster and we look forward to helping the Group to fully realise their ambitions."
Jamal Jawhari, partner and member of the board of United Iron & Steel Company LLC added: "The ZonesCorp model is extremely attractive for us, the 'one stop shop' approach and the potential for synergies within the cluster in particular. Added to that, the combination of low energy and fuel costs, the strategic location of Abu Dhabi to serve our target markets and the pro-industry stance of the UAE government makes ZonesCorp and Abu Dhabi the ideal choice."
Over the last two years ZonesCorp has attracted AED11.3 billion of new investment, and 152 new projects creating well over 12,000 new jobs.
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