Abu Dhabi Ports, the master developer, operator and manager of ports and industrial zones in the Emirate, has signed a standard Musataha agreement (SMA) with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad). The state-of-the-art facility will cater to the region’s oil and gas industry, manufacturing high quality, sour grade Longitudinal Submerged Arc Welding (LSAW) steel pipes.
The SMA will see Al Gharbia Pipe Company invest a projected total of 1.1 billion, with their new facility requiring a plot size of 200,000 square metres. Al Gharbia Pipe Company, a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan’s leading steel firms, JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI), expects the facility to be completed by March 2018. The plant will employ over 370 staff and produce up to 240,000 tons of steel pipe a year,
“The exceptional infrastructure and transportation network offered by Kizad will make a significant difference to Al Gharbia’s business operations,” said Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports.
“The new facility will create business opportunities and jobs in the Emirate, directly supporting Abu Dhabi’s vision of a diversified economy”, he added.