- Facility will produce 240,000 tonnes of steel pipe a year
- Al Gharbia Pipe Company is a joint venture between the UAEs Senaat and two Japanese steel companies
- The plant is expected to be completed by March 2018
The master developer of ports and industrial zones, Abu Dhabi Ports, has signed a deal agreeing to open a pipe manufacturing facility in the Khalifa Industrial Zone Abu Dhabi (Kizad) to service the oil and gas sector.
The agreement has been signed with Al Gharbia Pipe Company, which has committed to investing AED1.1bn ($300m) in the new facility.
It is expected to be completed by March 2018 and will ultimately employ over 370 workers and produce 240,000 tonnes of steel pipe a year, according to a statement released by Abu Dhabi Ports on 16 August.
Al Gharbia Pipe Company is a joint venture between the UAEs Senaat, which holds a 51 per cent stake, and two Japanese steel companies, JFE Steel Corporation and Marubeni-Itochu Steel (Misi).
With the ongoing growth of the oil and gas sector in the region, the demand for high-quality steel pipes is expected to expand steadily, said Takafumi Nishiuma, vice president of JFE Steel. We see huge opportunities in this market and in particular in the UAE.