Abu Dhabi Ports, the master developer, operator and manager of ports and industrial zones in the emirate, has signed a standard Musataha Agreement (SMA) with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad). The state-of-the-art facility will cater for the region's oil and gas industry, manufacturing high quality, sour grade Longitudinal Submerged Arc Welding (LSAW) steel pipes.
The SMA will see Al Gharbia Pipe Company invest a projected total of Dh1.1 billion, with their new facility on a plot size of 200,000 square metres. Al Gharbia Pipe Company, a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan's leading steel firms, JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI), expects the facility to be completed by March 2018. The plant will employ over 370 staff and produce up to 240,000 tons of steel pipe a year.
"The exceptional infrastructure and transportation network offered by Kizad will make a significant difference to Al Gharbia's business operations," said Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports. "The new facility will create business opportunities and jobs in the emirate, directly supporting Abu Dhabi's vision of a diversified economy", he added.
Al Gharbia Pipe Company will utilise Kizad's Modular Path, integrated with Abu Dhabi's highway network, to enable the movement of large loads and structures to the city and throughout the rest of the emirate and region as a whole.
Jamal Salem Al Dhaheri, Acting Chief Executive Officer at Senaat, predicts that the agreement will provide for significant supply chain efficiencies. "By housing our production facilities at a strategic location like Kizad, we will be able to utilise a range of world-class services and infrastructure which will allow us to improve delivery time and service to our customers in the region" he said.
Takafumi Nishiuma, Vice President of JFE Steel, said, "With the ongoing growth of the oil and gas sector in the region, the demand for high-quality steel pipes is expected to expand steadily. We see huge opportunities in this market and in particular in the UAE."
Tariq Al Wahedi, Senior Vice President -Projects and Business Development at Senaat, added, "The new agreement allows us to better serve our current and prospective clients in Abu Dhabi and the region as a whole. Our investment is in line with our commitment to Abu Dhabi's economic diversification and strengthening. Establishing our facilities in Abu Dhabi will create opportunities for both businesses and individuals throughout the emirate."