17 April 2016
The UAE's first large-diameter, sour service capable welded steel pipe project to start operations in 2018

Abu Dhabi, UAE - Al Gharbia Pipe Company ("Al Gharbia"), a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan's leading companies in the steel sector; JFE Steel Corporation and Marubeni-Itochu Steel Inc. ("MISI"), broke ground today in  Khalifa Industrial Zone  Abu Dhabi (Kizad). Kizad is owned and managed by Abu Dhabi Ports, the master developer, operator and manager of ten non-oil ports in the Emirate.

Al Gharbia will be the UAE's first plant capable of manufacturing large-diameter, thick wall, sour service, longitudinally welded steel pipe to service the oil and gas transportation sector, with the infrastructure and construction sectors as secondary markets.

The plant will be built on a 200,000 square metres plot of land in Kizad and is expected to formally launch operations in 2018. Once fully operational, production capacity is set to reach 240,000 tonnes annually, of which around 40 per cent will be exported to neighbouring markets in the GCC and greater Middle East, as well as North and East Africa through Khalifa Port and the excellent road network that the UAE's infrastructure provides.

Commenting on the new venture, Eng. Aqeel Madhi, Chairman of Al Gharbia Pipe Company, said, "This is a critical milestone in the development of Al Gharbia Pipe Company, and I look forward to the plant becoming fully operational in the near future. 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."

Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said, "Abu Dhabi Ports is proud to host Al Gharbia's plant, which will be the first of its kind in the UAE. The manufacturing facility on Kizad's Modular Path -  connected  to Khalifa Port and Abu Dhabi's highway network to enable the movement of large loads and structures -  will help demonstrate the efficiency of the industrial zone's innovative and integrated transportation infrastructure. The integrated multi-module transportation network offered by Khalifa Port and Kizad will support Al Gharbia in serving their existing and potential customers."

Al Gharbia is the first industrial venture between the UAE and Japan to take place in the UAE, and has been strongly supported by the Abu Dhabi-Japan Business Promotion Initiative of the Japan Cooperation Centre for the Middle East. The initiative supports Japanese companies that invest in projects to strengthen ties between Japan and the UAE. Senaat holds a 51 per cent  stake in Al Gharbia, whilst JFE Steel Corporation and Marubeni-Itochu Steel Inc hold 27 per cent  and 22  per cent respectively.

In August 2015, Al Gharbia awarded its EPC contract to a consortium formed by SMS Group and Larsen & Toubro Limited, who will be responsible for constructing the complete plant on a turn-key basis.

In February 2016, Al Gharbia announced the signing of a loan agreement with a group of Japanese and Emirati banks totalling US$185 million. The Japan Bank for International Cooperation ("JBIC") committed US$111 million, whilst Sumitomo Mitsui Banking Corporation ("SMBC"), Mizuho Bank ("Mizuho") and National Bank of Abu Dhabi ("NBAD") will provide the balance of the funds. SMBC acted as financial advisor on this transaction.

With a majority stake in Al Gharbia, Senaat is committed to growing the industrial sector in Abu Dhabi and supporting the implementation of Abu Dhabi's 2030 Economic Vision.

Total investment in the Al Gharbia Pipe Company is expected to reach AED1.1 billion.


About Abu Dhabi Ports:
Established in 2006, Abu Dhabi Ports celebrates ten years of innovation, growth and partnership embarking on another decade of facilitating economic diversification through enabling maritime and trade development. This is done by delivering high quality maritime services, supporting partners' infrastructure projects and setting up new companies and joint ventures in the ports and logistics sectors.

The flagship state-of-the-art Khalifa Port and Khalifa Industrial Zone Abu Dhabi (Kizad) play a pivotal role in the diversification of the economy.  Khalifa Port was inaugurated on 12/12/12 by the UAE President H.H Sheikh Khalifa bin Zayed Al Nahyan. The port's semi-automated container terminal handles all of Abu Dhabi's container traffic, after its transfer from Zayed Port, the historic port in the city centre.

Khalifa Port's current capacity is 2.5 million TEUs (twenty foot equivalent units/containers) and 12 million tonnes of general cargo. Further phases of development will occur as market demand requires. When all phases are complete, Khalifa Port will be able to handle 15 million TEUs and 35 million tonnes of general cargo per year.

Abu Dhabi Ports manages ten commercial, logistics, community and leisure ports, and Khalifa Industrial Zone that is serving a range of logistics and manufacturing investors. Abu Dhabi Ports is boosting Abu Dhabi's economic growth and diversification, in line with the Abu Dhabi's Economic Vision. 

Follow us on twitter: @AbuDhabiPorts

About Al Gharbia
In March 2015, Senaat and two of Japan's leading companies in the steel sector, JFE Steel Corporation and Marubeni-Itochu Steel Inc., established Al Gharbia Pipe Company. The joint venture is the UAE's first large-diameter, sour service capable, welded steel pipe project.

Al Gharbia will leverage JFE Steel's know-how for high-quality large-diameter welded steel pipes, MISI's sales networks and Senaat's presence and connections in Abu Dhabi.

Once fully operational in 2018, Al Gharbia's production capacity is expected to reach 240,000 tons annually of large diameter high quality sour grade steel pipes that cater to the Construction and Energy sectors in the region. Around 40% of production is planned to be exported to neighbouring markets in the GCC and greater Middle East as well as north and East Africa.

Al Gharbia plant will be built on a 200,000 sqm plot of land at Khalifa Industrial Zone Abu Dhabi (KIZAD). The total expected investment is approximately AED 1.1 billion.

About Senaat
Senaat is the UAE's largest industrial holding company, managing assets for the Government of Abu Dhabi. Senaat is fully owned by Abu Dhabi Government and has been mandated to create, optimise, promote and champion capital and power intensive assets in the United Arab Emirates. It is a key contributor to Abu Dhabi's Economic Vision 2030, which aims to diversify the Emirate's economy away from its reliance on the hydrocarbon sector by developing a strong industrial capability. Senaat thrives on the development of UAE national human capital through leadership development, job creation and knowledge transfer.

Senaat, which translates as "Industries", manages more than US$7.3 billion (AED26.8 billion) of industrial assets and employs more than 19,500 people. Senaat has invested over US$4.9 billion (AED18 billion) in the non-oil sector since 2004 and its leadership is made up mainly of Emirates nationals.

Its subsidiary companies benefit from Senaat's unique ability to source innovation, create and grow businesses and provide proactive, strategic input through to commercial productivity. Senaat aligns itself with its portfolio companies to build world-class companies:

  • Emirates Steel

Emirates Steel is the only integrated steel producer in the UAE and one of the largest integrated steel producers in the GCC.

  • National Petroleum Construction Company (NPCC)

NPCC is a major international contractor providing integrated onshore and offshore oil and gas fabrication, support and Engineering, Procurement and Construction services.

  • Arkan

Arkan specialises in the manufacturing of building and construction products in the UAE.

  • Ducab

Ducab is a joint venture between the Abu Dhabi and Dubai governments and is one of the leading manufacturers of high-quality power cables and wires in the Middle East.

  • Agthia

Agthia is one of the UAE's leading food and beverage groups with assets across the Middle East, North Africa and Turkey.

  • Al Foah

Al Foah is the largest date company in the world. It manages the process of packaging, distributing and marketing dates in Abu Dhabi to 44 different countries.

  • Taweelah Aluminium Extrusion Company (TALEX)

TALEX is a joint venture with Gulf Extrusions, an Al Ghurair Group company, and owns and manages the 50,000 metric tonne capacity, state-of-the-art Aluminium Extrusion plant based at Kizad.

  • Al Gharbia Pipe Company

Al Gharbia Pipe Company is a joint venture between Senaat and two of Japan's leading companies in the steel sector, JFE Steel Corporation and Marubeni-Itochu Steel Inc (MISI). It owns and manages the UAE's first sour service capable, welded steel pipe plant based at Kizad with expected capacity of 240,000 tons annually.

For further information, please visit our website: www.senaat.co

© Press Release 2016