Al Gharbia Pipe Company (Al Gharbia) has broken ground on a steel plant in the Khalifa Industrial Zone Abu Dhabi (Kizad).
The company is a joint venture between UAE’s Senaat and Japanese steel firms JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI).
Total investment in Al Gharbia is expected to be about AED1.1bn ($299.42m). It represents the first industrial venture between the UAE and Japan in the UAE, and has the backing of Abu Dhabi-Japan Business Promotion Initiative of the Japan Cooperation Centre for the Middle East.
Al Gharbia’s engineering, procurement and construction (EPC) contract lies with a consortium formed by SMS Group and Larsen & Toubro Limited, which will be responsible for constructing the complete plant on a turn-key basis.
The plant will be built on a 200,000 sq m plot of land at Kizad, owned and managed by Abu Dhabi Ports. When fully operational, annual production capacity is set to reach 240,000t, of which around 40% will be exported to neighboring markets in the GCC and greater Middle East, as well as North and East Africa.
The facility will produce steel pipes primarily for the oil and gas transportation sector, with the infrastructure and construction sectors as secondary markets. It is scheduled to become fully functional in 2018.
Al Gharbia Pipe Company chairman Aqeel Madhi said: “Al Gharbia is set to become a worldwide benchmark with regards to the manufacturing of welded pipes, both in terms of technology and quality, as well as production efficiency. The high calibre partnership forged between Senaat, JFE Steel and MISI shall enable Al Gharbia to secure a leading position in the region.”