Jul 24 2008 |
more articles from
|
$5bn firm set up to cut steel shortages
Bahrain-based investment bank Gulf Finance House (GFH) has set up the $5 billion (Dh18.4bn) venture, HadeedMena, in partnership with four companies.According to the Chairman of GFH , the new steel company will plug the production shortfall in the Middle East and North Africa (Mena) region.
The four companies are Emirates International Investment Company , Khaleej Development Company (KDC) , Q-Invest and First Energy Bank . MN Dastur and the Gulf Organisation for Industrial Consulting (GOIC) are the technical partners and market advisers.
"We intend to differentiate ourselves by taking a top to bottom approach to the value chain," said GFH Chairman Esam Janahi. "It will focus both on the upstream production of steel billets and the downstream manufacture of rebars and structures.
"The company is currently in the final negotiation stages for a number of partnerships and acquisitions that we will be able to announce in the near future "
The project will deliver an annual capacity of eight million tonnes in the next four years and is expected to eventually reach 12 million tonnes - equal to 15 per cent of total regional needs. This will make it one of the key steel producers in Mena.
It is estimated that the Middle East accounts for more than $2 trillion of investment in the construction and real estate sectors as a result of the surplus created by high oil prices. The region consumes about 35.4m tonnes of steel end-products, though it produces only around 24m tonnes.
Dr Ahmed Mutawa, Secretary-General of GOIC , said: "GCC economies realise that establishing new manufacturing and service capacity will allow them to be far more responsive to their long-term domestic needs.
"The creation of HadeedMena is a perfect example of this approach. Instead of being dependent on steel imports we will now be able to produce this essential product within our own borders."
HadeedMena will operate in a number of locations across the Gulf, Asia and Africa. Upstream production will be located in countries rich in iron ore and coal while downstream activity will focus on countries with exceptionally high demand across the GCC and Mena.
Ahmed Al Qattan, Vice-Chairman and Managing Director of KDC , said: "We believe our plans for this company will give us the competitive advantages required to become a regional player."
Supriya Das Gupta, Chairman of MN Dastur, said: "The plants will adopt the latest technology and manufacturing techniques by partnering with leaders in steel manufacturing; employing the most up to date technology and processes."
Professor Abdulatif Al Meer, Managing Director of Qatar's Q-Invest , said: "Beyond the immediate economic benefits this kind of initiative has a wide-ranging impact on employment levels and standards of living.
"Steel production generates a strong pipeline of follow-on jobs in the engineering, manufacturing, design and support sectors all of which provide jobs and improved living standards."
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment