Dubai Investments (DI) and Abu Dhabi National Company for Building Materials have formed a joint venture for a $68m (AED250m) steel plant in the capital.
Dubai Investments’ wholly-owned subsidiary Dubai Investments Industries (DII) holds a 51% stake in the joint venture – with the remaining being held by BILDCO.
A Memorandum of Understanding (MoU) was signed by Mohammed Al Raqbani, general manager, Dubai Investments Industries and Dr Nasser Saif Al Mansoori, board member of BILDCO, in April 2016.
The new plant, expected to go on stream by the end of 2017 in Musaffah, will produce 300,000 metric tonnes of reinforced steel bars per annum, once fully operational.Khalid Bin Kalban, managing director and CEO, Dubai Investments, said: “dubai Investments’ joint venture for the BILDCO steel plant is a major step forward to not only cater to the domestic demand for steel with the rampant construction across the UAE, but also capitalise on the surging market requirements for steel across the Middle East.
“Dubai Investments has a strong portfolio in the building materials domain and this joint venture with BILDCO for the steel rebars is a strategic fit to further strengthen the company’s leadership in the sector.”
Saif Darwish Al Ketbi, chairman, BILDCO, added: “Since its inception, Abu Dhabi National Company for Building Materials has contributed significantly to the growth and building of infrastructure in the UAE, earning an unmatched reputation as an innovative company.
“BILDCO’s joint venture with Dubai Investments is aimed at creating new demand for steel across the UAE and region and is a significant milestone in its growth plans.”
According to industry estimates, the steel sector in the UAE has witnessed a steady upswing over the past few years and is expected to grow by almost 5% in the next three to four years, with anticipated surge expected from the infrastructure developments for Expo 2020.