Target, a leading engineering, procurement, and construction (EPC) company based in Abu Dhabi, is one of 25 local manufacturers that have signed a strategic collaboration agreement (SCA) with Abu Dhabi National Oil Company (Adnoc), to support the energy group in its vision to procure AED70 billion ($19 billion) worth of industrial products from UAE-based manufacturers by 2027.
Under the Agreement, Target will serve as a steel fabricator of a range of steel structural products for Adnoc.
These products are essential to a wide range of Adnoc’s EPC projects, and the energy provider has committed to making local manufacturers the exclusive suppliers of all its steel fabrication needs.
Adnoc has dedicated AED20 billion ($5.45 billion) to local fabrication yards from 2023 to 2028, which is set to deliver an annual GDP contribution of AED5 billion to the UAE, and up to 10,000 new jobs.
This investment will not only bolster and diversify the UAE’s economy, but also ensure that Adnoc has a resilient and sustainable supply chain, stated in a statement.
Adnoc’s SCA with Target is the latest in a series of local manufacturing agreements the company has signed for the Make it in the Emirates campaign, which aims to boost the UAE’s industrial growth and create long-term domestic manufacturing opportunities for the private sector.
Dr Saleh Al Hashmi, Adnoc’s Director, Commercial and In-Country Value, said, “We are proud to spearhead the localization of manufacturing in the UAE and generate a sustainable supply chain through our partnerships with valued local suppliers like Target. Our commitment to Make It in the Emirates is increasing opportunities for the local industrial sector and raising the capabilities of local suppliers, which is crucial to securing a diversified, circular economy.”
Target is positioned to serve as one of Adnoc’s steel fabrication partners as the company has a world-class 52,000m2 manufacturing facility in the UAE, boasting state-of-the-art equipment and facilities.
Target’s SCA with Adnoc is a significant endorsement of the organisation’s capabilities and will help the company expand its market penetration, both in the UAE, and across the broader Middle East region.
“Sourcing our most critical industrial products locally is consistent with our vision to reduce carbon emissions through a more sustainable and efficient supply chain. Our close proximity to Target will also ensure rapid and effective feedback loops, yielding higher quality products that not only meet Adnoc’s needs, but also those of the country and region as a whole,” Dr Al Hashmi said.
“As a long-standing partner to ADNoc, we would like to extend our thanks to the company’s leadership for their trust and continued support,” said Chaouci Yassine, CEO at Target, which last year was acquired by ALEC Engineering and Contracting. “The SCA with Adnoc paves the way for the ALEC Group to further its mission of being a trusted partner for the region’s largest and most iconic projects,” he added.--OGN/TradeArabia News Service