Emirates Steel, Phase 3 project
Emirates Steel, the largest integrated steel producer in the UAE, has released the invitation to bid (ITB) for Phase 3 of its expansion project. Launched almost five years ago, the project is in line with Abu Dhabi’s visionary “2030 Plan”, which aims at reinforcing the industrial sector in the emirate. The plan also targets the establishment of a solid and diverse manufacturing base that will help diversify the emirate’s resources and contribute to the nation’s income through the development of substantial industrial units, primarily in the basic industry sector.
According to Emirates Steel’s Chairman, HE Engineer Suhail Mubarak Musallam Athaeeth Al Ameri, Phase 3 will comprise a steel melting plant, a hot rolled coil (HRC) mill and ancillaries, which will primarily service GCC demand for HRC across a range of downstream segments, including: pipe producers; cold rolling producers of galvanized coil and coated sheeting products; boiler, tank and pressure vessel producers; and structural steel fabricators.
The Company has already completed, over a period of five years, a two-phased expansion program costing approximately AED 9 billion. The program consists of new rolling mills, steel manufacturing and direct reduction plants, together with a heavy and jumbo sections mill, due to come on stream by the end of the year. The new plants increased the Company’s rolling output capacity from 650,000 metric tons per annum (MTPA) to approximately 3 million MTPA at present.
Bin Athaeeth said that Emirates Steel plans to award the contracts for Phase 3 by December 2011. He stressed that the project has attracted significant interest from various internationally-renowned bidders. The project is expected to be completed within 30 months from contract award, with commercial production of HRC anticipated in mid-2014, adding an additional production capacity of 1.6 million MTPA of product to the Company’s portfolio.
Bin Athaeeth emphasized that well-equipped and highly-trained UAE nationals will supervise and follow up on the progress and the commissioning of the project. “We succeeded in implementing the first two phases of the project relying on our national teams. Their remarkable talents have contributed to the process of lifting our national industries to higher levels,” he pointed out.
“We have made significant strides in nationalizing jobs at our Company, mainly through the implementation of well-crafted strategies and initiatives that aim at raising the numbers of our UAE national technical staff. We have also provided our talented nationals with appropriate training to ensure that the increase in their numbers would be in tune with the developments taking place in the UAE’s industrial sector, and Abu Dhabi in particular,” he said.
“As such, we have managed to enhance the capabilities of our UAE nationals in technical areas through the development of a number of training and vocational programs offered by highly-reputed international centers and by local educational institutions,” he added. Bin Athaeeth expects an estimated 2,000 additional jobs for UAE nationals will be created in the country once the three phases of the project are complete. He asserted that “Emiratization is one of our highest priorities and we remain dedicated to contributing to this important government initiative”. In fact, the Company has already succeeded in increasing the percentage of UAE nationals handling top administrative and operational jobs to 62 per cent”.
On another note, Bin Athaeeth emphasized on the Company’s concern for the environment. He commented that “Emirates Steel is leading the way, in conjunction with Masdar, in the production of energy efficient low carbon embedded steel and will become the first major global steel producer to sequestrate carbon dioxide on a mass scale. We are committed to the environment and the reduction of greenhouse gases and will remain so during the course of this expansion project and throughout the operational phase”.
Building on this vision, several leading-edge innovative energy reduction options are also being considered for Phase 3. These include continuous strip production to reduce energy requirements and to maximize yields in the rolling process, energy recovery from the electric arc furnace (EAF) gas emissions to produce steam for power generation and for the production of industrial water, scrap pre-heating systems to reduce the EAF’s electricity consumption, together with various other systems to reduce electricity and water consumption levels.
He asserted that the launch of Phase 3 of Emirates Steel’s expansion project will progress as scheduled by the General Holding Corporation (GHC), Emirates Steel’s parent company, which is responsible for implementing Government projects aimed at developing the industrial sector in Abu Dhabi.
Bin Athaeeth indicated that these expansion plans reflect the resolve of the Government of Abu Dhabi to strengthen the basic industries in the emirate and to promote the emirate to become a hub for manufacturing in the region. He said that the Company will remain dedicated to the process of implementing its plans to establish the first and largest integrated steel manufacturing complex in the region by 2015. He reiterated that GHC is currently implementing carefully-revised and comprehensive plans to develop the industrial sector in the emirate. These plans primarily focus on heavy industries, such as iron and steel, aluminum, copper, rubber and other industries.
“We are looking at real investment opportunities in the manufacturing of new products that will add to the Company’s competitive advantage and promote it to international standards. We are certain that the projects we are currently implementing are feasible, in view of the development of various sectors in Abu Dhabi, and the determination of the Government to execute its development plans, which include mega projects in energy, oil and gas, petrochemicals, and infrastructure,” he said.
He indicated that Abu Dhabi will invest heavily in the vital industrial sector, a move that will contribute towards economic stability and diversification of the emirate’s income by reducing its reliance on oil as its major source of income.
He assured that Abu Dhabi has the pre-requisites to become one of the leading regional, and perhaps international, hubs in the manufacturing of steel and other basic industries. He said that “the emirate has enough natural resources, funds, and administrative and technical skills to achieve its goals. The emirate also has the right partnerships with global industry leaders, who have realized the importance of its strategic location, advanced infrastructure, developed logistics and transportation networks, free economy and other competitive incentives”.