UAE cold steel rolling and galvanizing heavyweight appoints CMI-FPE India as supplier for CGL and Skin Pass Mill
UAE-based Al Ghurair Iron & Steel (AGIS), the first cold steel rolling and galvanizing complex in the country, is all set to double its capacity for galvanized production after signing on CMI-FPE India as the supplier of a new Continuous Galvanizing Line (CGL) and Skin Pass Mill.
AGIS, a joint venture between the Al Ghurair Group, one of the leading industrial groups in UAE, and global steel-making giant Nippon Steel & Sumitomo Metals Corporation (NSSMC) of Japan, already has an annual galvanized production capacity of 200,000 mts. This will go up to 400,000 mts with the supply of a new CGL and Skin Pass line from the Indian company, which is a subsidiary of Belgium's CMI Group. The increased capacity will also enable AGIS to boost the color coating industry in the Middle East by providing them access to superior quality GI substrate locally.
A high level delegation from CMI-FPE, led by Mr. Jean Gourp, Managing Director, and Mr. Deepak Khanna, Chief Operating Officer, was in Abu Dhabi on April 1st and 2nd to finalize the details of the CGL supply, ahead of the signing later this month of a formal contract for engineering, supply, erection and commissioning of the line.
Mr. Abu Bucker Husain, CEO, AGIS, said: "Although this new CGL was part of our original business plan, it has taken us longer than expected to place the order as we wanted to cover the optimal technical requirements of the market in a cost effective way.
"AGIS has a clear focus on delivering superior quality products to customers on a consistent basis and this order with CMI-FPE is in line with that vision. Our current production lines, operational since 2009, are from CMI-FPE and we are happy with the technology as well as their service. We are pleased to combine our strengths to meet the growing demands of the marketplace."
Mr. Husain added: "Our project will be financed through a combination of debt and equity and we are in the final stages of discussion with the banks."
AGIS, located in the Industrial City of Abu Dhabi (ICAD) in the emirate's Mussafah area, commenced commercial production in 2009 with a pickling-line, a cold-rolling mill, and a galvanizing-line. Since then it has achieved a high level of operation and sales by taking advantage of its location in the UAE, which is an international distribution base, while expanding its customer network in the market of flat steel products for the construction sector in the Middle East and North Africa (MENA), and West Asia. AGIS's success in reaching full production while maintaining the highest quality standards in the industry in such a short time frame is what enabled the company to enter into a JV with NSSMC.
The addition of the new CGL not only doubles AGIS's production capacity, but also increases its product basket considerably, thereby widening its customer base. AGIS will now be able to supply galvanized coils measuring from 0.20 mm to 2.50 mm, which will take care of the requirements of the HVAC, PEB, PPGI, electrical panels, white goods and construction industries in the MENA region. This capacity addition will also enable AGIS to meet the entire requirements of the UAE market through local production.
Mumbai, India, based CMI-FPE has developed a wide range of technologies in the field of processing lines, rolling mills, thermal and chemical processes. It is part of the CMI Group, a Belgium-based international supplier specialized in the conception, modernization and maintenance of equipment in the energy, defense and industry markets. CMI employs over 3,500 people across France, Luxembourg, Belgium, Germany, Brazil, China, the United States, India and Russia.
-Ends-© Press Release 2013
