3 October 2005

ABU DHABI -- Al Nasser Industrial Enterprises (ANIE), one of the UAE's leading private sector manufacturing companies, yesterday announced plans to set up two steel manufacturing plants with a combined capacity of 450,000 tonnes per annum (TPA) in Mussafah, Abu Dhabi.

The plants represent a major backward integration for ANIE's steel manufacturing business.  One of the new plants will manufacture steel billets and the other will be an HYL-ZR  DRI (Direct Reduced Iron) plant, to contribute significantly to the growth of ANIE's steel manufacturing capabilities at its steel rolling mills in the region.

The investment in the two plants will boost ANIE's total steel manufacturing capacity to 600,000 TPA by early 2007. 

Announcing the establishment of the manufacturing plants, Abdulla Nasser bin Hawaileel Al Mansoori, Chairman of ANIE, said: "The UAE is investing heavily to build new infrastructure and steel is a critical commodity in constructing roads, bridges, power plants, airports, housing and other developmental projects.

"We expect continuous growth in the demand for steel in the coming years and our investment in these facilities represents ANIE's intention to support the government's endeavours in transforming the UAE in general and Abu Dhabi in particular into one of the most advanced and infrastructurally-attractive locations in the region".

Al Mansoori also noted that: "The backward integration into billets and DRI will reduce our dependence on the global market for further growth. He said the new plants would take advantage of the regional availability of raw material such as iron pellets. 

The two manufacturing plants will have 300 employees and will be located at the Industrial City Abu Dhabi (ICAD) in Mussafah, over a 200,000 square metre area. "ICAD has been our preferred destination due to the pragmatic approach of its management and their willingness to support industries", Al Mansoori added. The plants will utilise natural gas and power supplied by Adnoc and  Adwea respectively. HYL, Mexico and GA Danieli are the technology and equipment suppliers for the respective plants. M. N. Dastur & Co., are the project consultants. The manufacturing plants are intended to be scaled up to double the capacity in the next phase. Sanjay Mehta, CEO of ANIE said: "Jointly with these companies we expect to commission the plants in record time". Jorge Becerra, S.V.P Commercial of HYL commented that the  plant will be the first micro module built anywhere in the world by HYL.

BY A STAFF REPORTER

© Khaleej Times 2005