(MENAFN- Khaleej Times)Abu Dhabi Ports has signed a Musataha agreement with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad).
The manufacturing facility will cater to the region's oil and gas industry manufacturing high quality sour grade steel pipes. The agreement will see Al Gharbia Pipe Company invest a projected Dh1.1 billion. The new facility will require a plot size of 200000 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 expects the facility to be completed by March 2018. The plant will employ over 370 staff and produce up to 240000 tonnes of steel pipes 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 chief executive officer of Abu Dhabi Ports. "The new facility will create business opportunities and jobs in the emirate" he added. Engr. Jamal Salem Al Dhaheri acting chief executive officer at Senaat said the agreement would 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." Engr. Tariq Al Wahedi senior vice-president of projects and business development at Senaat said: "The new agreement allows us to better serve our current and prospective clients in Abu Dhabi and the region as a whole. -
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