(MENAFN - Khaleej Times) Dubai Investments has announced a joint venture with Abu Dhabi National Company for Building Materials, or Bildco, for setting up a steel plant in Musaffah at a cost of Dh250 million.
Dubai Investments' wholly-owned subsidiary Dubai Investments Industries (DII) holds a 51 per cent stake in the joint venture and the remaining is held by Bildco. Mohammed Al Raqbani, general manager of DII, and Dr Nasser Saif Al Mansoori, board member of Bildco, signed a memorandum of understanding.
The new plant, expected to go on stream by the end of 2017 at Industrial City of Abu Dhabi (ICAD) III in Musaffah, will produce 300,000 metric tonnes of reinforced steel bars per annum, once fully operational.
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 nearly five per cent in the next three to four years, thanks mainly to growing demand from the oil and gas and construction sector, with anticipated surge expected from the infrastructure developments for Expo 2020.
Khalid bin Kalban, managing dDirector and CEO of 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."
Saif Darwish Al Ketbi, chairman of Bildco, said: "Since its inception, Abu Dhabi National Company for Building Materials has contributed significantly to the growth and building of infrastructure in the UAE. Bildco's joint venture with Dubai Investments is aimed at creating new demand for steel across the UAE and region."