Dubai Investments has announced a joint venture with Abu Dhabi National Company for Building Materials to set up a steel plant in Musaffah, at a cost of AED250 million ($68 million).
Dubai Investments said its subsidiary Dubai Investments Industries holds 51 percent stake in the joint venture and the remaining is held by BILDCO.
The new plant, expected to go on stream by the end of 2017 at Industrial City of Abu Dhabi III, will produce 300,000 metric tonnes of reinforced steel bars per annum, once fully operational, a statement said.
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 5 percent in the next three to four years.
Khalid Bin Kalban, managing director 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, added: “BILDCO’s joint venture with Dubai Investments is aimed at creating new demand for steel across the UAE and region and is a significant milestone in its growth plans.”