Al Nasser Industrial Enterprises (ANIE), one of the UAE's leading private sector manufacturing companies, today launched the construction of two new manufacturing plants in Abu Dhabi.
The ground-breaking ceremony for the two plants was held earlier today under the patronage and in the presence of HH Sheikh Hamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Planning & Economy Department and Chairman of the Higher Corporation for Specialized Economic Zones (HCSEZ).
Abdulla Nasser Hawaileel Al Mansoori, Chairman of ANIE, said: “Our new manufacturing facilities are located in Industrial City of Abu Dhabi (ICAD 1) in Mussafah. The selection of the ICAD as the site for our manufacturing facilities recognizes the excellent infrastructure and support provided by the HCSEZ (Higher Corporation for Specialized Economic Zones) to encourage manufacturing and industrial activity in Abu Dhabi”.
The two new plants will occupy 200,000 square metres and are expected to be commissioned by April 2008. One of the plants will be a HYL-ZR DRI (Direct Reduced Iron) sponge iron plant with a capacity of 250,000 Tons Per Annum. The other plant will manufacture steel billets and have a capacity of 350,000 Tons Per Annum.
"Our investment in these advanced manufacturing facilities represents a major backward integration for ANIE's steel manufacturing business and the resulting increase in our steel production capacity will make ANIE the second largest integrated steel producer in the UAE” added Al Mansoori.
He explained that ANIE’s steel mills presently utilize steel billets purchased from the international market. However, with the commissioning of the new manufacturing facilities and the company’s backward integration into DRI and billets, ANIE would reduce its dependence on the global market and leverage the local availability of raw material for steel manufacture.
Stating that ANIE’s overall steel manufacturing capacity will be boosted by 400% with this investment, Al Mansoori said that the decision to invest in these two plants was a clear indication of ANIE’s intent to position itself as an integrated steel manufacturing company.
Pointing out that the aggressive growth of the UAE’s infrastructure sector had created a massive demand for steel, he stated that ANIE was keen to play a key role in supporting the development of this sector. He also noted ANIE’s ongoing investments, would contribute to the economic diversification programme of the UAE.
He further stated that HYL, Mexico will supply, build and provide the technology for the DRI plant and GA Danieli will supply the furnace for the billet plant. The two projects will utilize 80 MW of power supplied by ADWEA (Abu Dhabi Water & Electricity Authority) and 9000 Mn btu of natural gas per day, which will be supplied by ADNOC.
