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, to set up its first hot and cold rolling mill in the UAE capital.
Under the agreement, Dana Steel will make a major investment to develop a 50,000 square meter facility within Abu Dhabi’s integrated trade, logistics and industrial hub.
Established in 2017, Dana Steel is one of the largest and most modern manufacturers of Hot Dip Galvanizing (HDG), Aluzinc (AZ) in the region to the consumer market in more than 50 countries in Middle East, Africa, Europe and America , Prepainted Galvanized (PPGI), Prepainted Aluminum Zinc (PPAZ) and Prepainted Aluminum (PPAL) steel coils and sheets.
A statement from Kezad Group said the new complex will facilitate the backward integration of the company’s continuous galvanizing and continuous color coating lines and will have a rolling capacity of 500,000 tonnes.
It said the approach would help boost Dana Steel’s manufacturing capacity in the Gulf region by replacing imported raw materials, such as cold-rolled full-hard coil, with new UAE-made supply.
By providing the base for Dana Steel’s first plant in Abu Dhabi, Kezad Group has extended its support for Abu Dhabi’s industrial strategy, which aims to scale up the UAE’s manufacturing industry by 2031 through a series of transformational initiatives. times more than 172 billion dirhams.
Mohamed Al Khadar Al Ahmed, Group Chief Executive Officer, said: “Investors such as Dana Steel are choosing our industrial ecosystem as a base to grow their businesses in the UAE and globally due to the modern infrastructure and efficient transport network provided by Kezad and Khalifa ports”
“We look forward to supporting Dana Steel in serving its customers and expanding its international presence by achieving vertical integration of its manufacturing supply chain,” he said.
The agreement with Kezad Group will mark Dana Steel’s first joint venture in Abu Dhabi and welcome the first Hot Rolled Pickling Oiled (HRPO) and Cold Rolled (CR) mills in Kezad.
In addition to constructing a metal product manufacturing facility at Kezad Group’s Metal Centre, the plant will also have the capability to recover and recycle spent acid, enabling the company to adopt a circular economy approach.
In the second phase of the expansion, Dana Steel will install a continuous galvanizing line (CGL) and a color coating line (CGL) at the same Kezad complex.
Dr Ankur Dana, CEO of Dana Steel Industry, said: “With the growing global demand for high-quality steel products, we are delighted to launch this milestone project in Kezad, which builds on our efforts to add value to our customers across continents. “
“This project will be our ninth industrial facility in the UAE, and several unique factors led us to choose Kezad for this investment, including the provision of world-class infrastructure, seamless connectivity to global markets and competitive Easy access to gas at affordable prices,” he added. –trade arab news agency