Dubai Investments in Bildco agreement for Mussaffah steel plant
18 May 2016
Dubai Investments has signed an agreement with Abu Dhabi National Company for Building Materials (Bildco) to develop a Dh250 million steel plant in Abu Dhabi’s Mussaffah area.
The agreement comes as construction demand during the run-up to Expo 2020 is expected to boost growth in the UAE steel industry by 30 per cent by 2021.
The investment firm, which is part-owned by the sovereign wealth fund Investment Corporation of Dubai, said on Tuesday that it would hold a 51 per cent stake in the new venture via its wholly-owned subsidiary Dubai Investments Industries, with Bildco holding the remaining shares.
“Dubai Investments has a strong portfolio in the building materials domain and this joint venture with Bildco for the steel rebars is a strategic fit to further strengthen the company’s leadership in the sector," said the Dubai Investments chief executive Khalid Kalban.
The plant, to be located in Mussaffah’s Industrial City of Abu Dhabi III, is expected to come on stream by the end of 2017.
It will produce 300,000 tonnes of reinforced steel bars per year once fully operational.
The UAE’s steel industry is forecast to grow by 30 per cent by 2021, Bharat Bhatia, chief executive of steel manufacturer Conares, said in November.
Dubai Investments shares closed about 1 per cent lower on Tuesday at Dh1.94.
Source : thenational.ae