Dubai Investments Industries, wholly owned by Dubai Investments, has signed a Memorandum of Understanding (MoU), with SKS Ispat & Power Limited, market leaders in the structural steel business in India. This MOU was signed by Mr. Shukri Al Mehairi, General Manager, Dubai Investments Industries and Mr. Anshul Singhal of SKS Ispat & Power limited.
As per the MoU, both parties have entered into a joint venture and a strategic business alliance for setting up of steel fabrication facilities and to use each other’s expertise in procurement of raw materials, designing, producing, marketing and erecting the Pre Engineered Building (PEB) and Hot Rolled Structures in India. The first facility will be operational in early 2008 and will have a production capacity of 50,000 metric tons per anum which is expected to reach 250,000 metric tons in three years time.
Emirates Building Systems Company LLC, the largest subsidiary of Dubai Investments Industries and one of the biggest company supplying PEB and Hot Rolled Structures in the local market, will provide all technology and technical assistance for the setting up of the new facilities and for the operations of the joint venture and all its future expansions. The first plant building as part of the joint venture will also be provided by Emirates Building Systems. Furthermore, the joint venture will start importing buildings even during their commissioning phase via the EBS facility in UAE.
The initial project cost is estimated at US$ 25 million which will be shared equally by both the joint venture partners. The joint venture will eventually provide employment to about 1000 people around Lonand, in the state of Maharashtra, India, where 66 acres of land have already been purchased for this project.
Shukri Al Mehairi, General Manager, Dubai Investments Industries, said, “India is one of the fastest growing economies in the world, expanding its infrastructure at a phenomenal pace. Presently there is a demand supply gap in PEB and Hot Rolled Structures in India which is expected to remain for some time. With the combination of EBS’ proven technology and SKS Ispat’s vast experience in the steel business and its market stronghold in India, we expect to reach new heights together while contributing to the growth of the local economy. This joint venture also underscores the importance of cooperation between the corporate sectors of UAE and India.”
