- Emirates Steel Arkan and ITOCHU collaborate on Low-Carbon Iron Production Hub pioneering sustainable innovation in the UAE's low-carbon iron supply chain
Abu Dhabi, United Arab Emirates: Emirates Steel Arkan (ADX: EMSTEEL), one of the largest publicly traded steel and building materials manufacturers in the region, signed a Memorandum of Understanding (MoU) with the Abu Dhabi Department of Economic Development (ADDED) and ITOCHU Corporation to pursue studies focused on the establishment of an integrated steel production complex in Abu Dhabi.
In partnership with ITOCHU Corporation and facilitated by ADDED, Emirates Steel Arkan aims to establish an iron production complex in Abu Dhabi that will play a significant role in the global supply chain for low-carbon iron, drive sustainable growth in the country’s low-carbon iron supply chain and contribute towards achieving the UAE Net-Zero 2050 strategic initiative.
Eng. Saeed Ghumran Al Remeithi, Group CEO, said, "As part of our commitment to join efforts with industry leaders that share our ambitions to provide low emission solutions to the global steel industry, we are proud to partner with ITOCHU Corporation once again to establish a first of its kind low carbon iron production complex in Abu Dhabi. This collaboration, with the support of the Abu Dhabi Department of Economic Development, will ultimately enable us to capture and meet the growing demand for environmentally friendly steel products while strengthening the UAE’s sustainable industrial ecosystem.”
Commenting on the partnership, Eng. Arafat Al Yafei, Executive Director of ADDED’s Industrial Development Bureau (IDB), said, “This partnership is in line with the COP28 objectives to support achieving net zero target and the strategic objectives of Abu Dhabi Industrial Strategy that aims to boost the manufacturing sector through developing the value chains of the targeted sector such as transportation and machineries subsectors. Our partnership with Emirates Steel Arkan and ITOCHU will further strengthen the manufacturing sector and its ties with international investors, helping to reinforce Abu Dhabi as the most competitive industrial hub in the region.
Kenji Otsuka, CEO for Middle East Bloc, ITOCHU Corporation, said: “We are also proud to be a part of core members to pursue achieving the goal. The goal of the Project is to create a low carbon emission iron supply chain reducing the carbon footprint and contribute to the global iron and steel industries heading to “greenalization”. In this project, ITOCHU will be responsible for sourcing the high-grade iron ore through the network built by trading and investment activities over the decades, Emirates Steel Arkan will utilize the experience of successful operation of the direct reduction plant with carbon capture, utilization and storage “CCUS” facility, which leads the way on carbon capture and JFE Steel will use the ferrous raw material produced through this project as a steelmaking raw material and promote CO2 emission reduction."
Emirates Steel Arkan also signed a MoU with DNV, Business Assurance Group, on the side-lines the 10th National Dialogue on Climate Ambition that took place on 30th May. The MoU formalized the intention of both parties to collaborate on various initiatives, including steel decarbonization, ESG and energy transition. This partnership signifies Emirates Steel Arkan's commitment to driving the industry towards net zero and advancing sustainable practices in line with the UAE's strategic initiative to achieve climate neutrality by 2050.
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About Emirates Steel Arkan (ESA)
Emirates Steel Arkan (the Group) is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.
Emirates Steel Arkan is committed to contributing to the UAE's industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonized steel manufacturers in the world and is recognized for its world-class safety performance.
The Group’s steel and building materials have been used in some of the UAE’s most iconic construction projects, including the Burj Khalifa, Emirates Palace, Etihad Towers, Yas Island, and more.
Emirates Steel Arkan is majority owned by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
For more information, please visit our website: www.emiratessteelarkan.com