.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
Nippon Steel to Invest in UAE Galvanizing Plant
11/21/2011 - Nippon Steel Corp. has reached an agreement with the shareholders of Al Ghurair Iron & Steel LLC regarding an equity investment in the company through a share transfer.
Nippon Steel Corp. has reached an agreement with the shareholders of Al Ghurair Iron & Steel LLC regarding an equity investment in the company through a share transfer. Al Ghurair Iron & Steel manufactures and sells hot-dip galvanized steel sheets under the management of the Al Ghurair Group, one of the largest conglomerates in the United Arab Emirates (UAE).
Through this transaction, Nippon Steel is to secure 20% of voting rights in Al Ghurair, with Al Ghurair becoming an equity method affiliate of Nippon Steel for accounting purposes.
Al Ghurair commenced commercial production in 2009 with a pickling line, a cold rolling mill, and a galvanizing line. Since then, Al Ghurair is said to have achieved a high level of operation and sales, taking advantage of its location in the UAE as an international physical distribution base and expanding its customer network in the market of flat steel products applied to construction in the Middle East, North Africa (MENA) and West Asia.
Steel consumption is anticipated to grow in the Middle East at an annual rate of 8-10% due to investments in the construction field along with a strong petroleum industry, according to Nippon Steel. The company believes that this investment enables it to capture the emerging flat steel products demand in the construction field of MENA and West Asia through the supply of hot-rolled-coils as raw material to Al Ghurair.
Established in May 2005 and located in Abu Dhabi, Al Ghurair Iron & Steel LLC manufactures and sells hot-dip galvanized steel sheets. Production capacity for its pickling line is 460,000 tonnes per annum; for its cold rolling mill, 360,000 tonnes per annum; 250,000 tonnes per annum for No1 continuous galvanizing line; and an additional 200,000 tonnes per annum with No2 CGL (as a future expansion).
