Abu Dhabi pipe factory set to export 40 of output

4/18/2016 10:09:02 AM

(MENAFN- Khaleej Times) A Dh1.1 billion joint venture pipe manufacturing factory broke ground at Khalifa Industrial Zone.

Al Gharbia Pipe Company is a joint venture between Abu Dhabi-owned Senaat and two Japanese steel companies - JFE Steel Corporation and Marubeni-Itochu Steel (Misi).

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

The plant will be built on 200000 square metres and is expected to launch operations in 2018. Once fully operational production capacity is set to reach 240000 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 UAE's road network.

Engr Aqeel Madhi chairman of Al Gharbia Pipe Company said: "This is a critical milestone in the development of Al Gharbia Pipe Company."

Al Gharbia is set to become a worldwide benchmark for manufacturing welded pipes both in terms of technology and quality as well as production efficiency the chairman said.

"The high-calibre partnership forged between Senaat JFE Steel and Misi shall enable Al Gharbia to secure a leading position in the region" he said.

Captain Mohamed Juma Al Shamisi CEO of Abu Dhabi Ports called the plant the "first of its kind in the UAE."

The manufacturing facility on Kizad's modular path will demonstrate the efficiency of the industrial zone's integrated transportation infrastructure. The multi-module transportation network offered by Khalifa Port and Kizad will support Al Gharbia in serving existing and potential customers the chief executive said.

Al Gharbia is the first industrial venture between the UAE and Japan in the UAE and has been supported by the Abu Dhabi-Japan Business Promotion Initiative of the Japan Cooperation Centre for the Middle East.

Senaat holds a 51 per cent stake in Al Gharbia whilst JFE Steel Corporation and Marubeni-Itochu Steel 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 plant on a turn-key basis.

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