Khalifa Economic Zones Abu Dhabi (Kezad) said it has signed a preliminary agreement with Dana Steel, the flagship manufacturing unit of industrial conglomerate Dana Group, for the establishment of its first hot and cold rolling steel complex in the UAE capital.
As per the agreement, Dana Steel will make a key investment to develop a 50,000-sq-m facility within the integrated trade, logistics and industrial hub of Abu Dhabi.
Established in 2017, and catering to consumer markets across more than 50 countries throughout the Middle East, Africa, Europe, and the Americas, Dana Steel is one of the region’s largest and most modern manufacturers of Hot Dip Galvanized (HDG), Aluzinc (AZ), Prepainted Galvanized (PPGI), Prepainted Aluzink (PPAZ) and Prepainted Aluminum (PPAL) steel coils and sheets.
The new complex will facilitate backward integration of the company’s continuous galvanising and continuous colour coating lines and will have 500,000 MT rolling capacity, said a statement from Kezad Group.
This approach will help boost Dana Steel’s manufacturing capacity in the Gulf region by replacing imported raw materials, such as cold rolled full hard coils, with a new Made in UAE supply, it stated.
By providing a base for Dana Steel first facility in Abu Dhabi, Kezad Group is extending its support for the Abu Dhabi Industrial Strategy, which looks to more than double the size of the emirate’s manufacturing sector to AED172 billion by 2031 through a series of transformational programmes.
Group CEO Mohamed Al Khadar Al Ahmed said: “Owing to the modern infrastructure and efficient transportation network offered by Kezad and Khalifa Port, investors such as Dana Steel are selecting our industrial ecosystem as a base from which to grow their operations in the UAE and globally.”
“By enabling vertical integration of their manufacturing supply chain, we look forward to supporting Dana Steel on its journey to serve customers and expand its international reach,” he stated.
The agreement with Kezad Group will mark Dana Steel’s first venture in Abu Dhabi while ushering in the first hot rolled pickled oiled (HRPO) and cold rolled (CR) steel facility in Kezad.
In addition to hosting facilities for building metal products manufacturing in Kezad Group’s metals hub, the plant will also have capabilities to recover and recycle waste acid, enabling the company to pursue a circular economy approach.
In the second phase of the expansion, Dana Steel will install a continuous galvanising line (CGL) and colour coating line (CGL) in the same Kezad complex.
Dana Steel Industry CEO Dr Ankur Dana said: “With worldwide demand for quality steel products set to grow, we are quite excited to start this milestone project in Kezad, which builds upon our efforts to enhance value for our customers across continents.”
“This project will be our ninth industrial facility within the UAE, several unique factors led us to choose Kezad for this venture including the world-class infrastructure on offer, in addition to seamless connectivity to global markets and easy access to natural gas at competitive rates,” he added.