Abu Dhabi’s General Industrial Corporation (GIC) is currently reviewing another 2.5 billion Emirati dirhams ($3.5 billion) investment in its newly established Emirates Iron and Steel Factory (EISF). The project would boost the production of reinforced iron bars, in an effort to meet the growing demand for construction materials in the Gulf region.
The Emirates Iron and Steel Factory also plans to issue a Dh 110 million tender in the second half of 2002, for the construction of wire rod and light sections, in a bid to expand and diversify the factory's products.
The EISF rolling mill, which commenced operations in May 2001, cost an initial Dh300 million to build. The UK's McLellan & Partners acted as consultants, while European majors SMS Demag, Siemens, Babcock and Forni Industriali Bendotti, were involved in the construction. The Al-Mussafah based iron and steel factory is one of nine plants owned by the GIC.
The EISF plans to start commercial production with 250,000 tons of concrete-reinforcing bars in the first quarter of 2002, following a performance test by year’s-end. The plant will gradually reach full capacity of 500,000 tons per year.
Senior Corporation Official Suheil Mubarak estimated that reinforced steel consumption in the UAE currently stands at some 800,000 tons per annum. Most of this demand is satisfied through imports from Saudi Arabia, Turkey and Qatar. The EISF currently contributes only 12,000 tons of steel to the local construction sector.
Mubarak confirmed that the factory could reach a Dh 4.2 million ($59 million) annual net income if it produces 300,000 tons or, 10 million Dh ($14 million) net income if it produces 400,000 tons per annum. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
