A recently commissioned UAE iron and steel factory, which is expected to begin commercial production early next year, will substantially reduce dependence on imports. The owners of Emirates Iron & Steel Factory invested Dh300 million ($81.68 million) in the first phase to produce reinforcing bars that conform to international standards. The factory plans to invest an additional Dh110 million ($29.95 million) to expand its product range, officials said. They said performance tests would take place by the end of this year and commercial production of 250,000 tonnes per year (tpy) would start in the first quarter of 2002, gradually going up to its full capacity of 500,000 tpy.

"In addition to the production of steel rebars, a study is currently under way for the expansion and diversification of the factory's products by adding wire rod and light sections," said acting general manager Gerold Strahlmann.

"We will be selecting contractors early next year. Selection of consultants is in process," he said. The UK's McLellan & Partners Ltd served as consultants for the factory while European majors involved in the construction were SMS Demag, Siemens, Babcock and Forni Industriali Bendotti. The factory is one of the projects of the Abu Dhabi-based General Industries Corporation (GIC). It is their ninth project to go on stream. "The creation of this factory is part of a strategy to generate diverse multi-income sources of business," said GIC general manager Suhail Al Amiri. The factory is the biggest and largest in the UAE with the latest rolling mill technology, he added.

Currently, the UAE's requirements are about 700,000 to 900,000 tpy, with much of the demand being met through imports from Saudi Arabia, Turkey and Qatar. There are also some small producers in the UAE. "Demand for the products is projected to increase substantially due to many infrastructure projects coming up in the UAE and neighbouring countries," said Al Amiri.