Al Ghurair doubles steel capacity with new line
Dubai, April 21, 2013
UAE-based Al Ghurair Iron & Steel (AGIS), a top steel rolling and galvanizing complex, is set to double its capacity for galvanized production with a new continuous galvanizing line (CGL) and skin pass mill.
AGIS already has an annual galvanized production capacity of 200,000 metric tonnes (mts). This will go up to 400,000 mts with the supply of the CGL and skin pass line from the India-based CMI-FPE India, a subsidiary of Belgium’s CMI Group.
The increased capacity will also enable AGIS to boost the color coating industry in the Middle East by providing them access to superior quality GI substrate locally.
A high level delegation from CMI-FPE, led by Jean Gourp, managing director, and Deepak Khanna, chief operating officer, recently finalised the details of the CGL supply, ahead of the signing later this month of a formal contract for engineering, supply, erection and commissioning of the line.
Abu Bucker Husain, CEO, AGIS, said: “Although this new CGL was part of our original business plan, it has taken us longer than expected to place the order as we wanted to cover the optimal technical requirements of the market in a cost effective way.
“AGIS has a clear focus on delivering superior quality products to customers on a consistent basis and this order with CMI-FPE is in line with that vision. Our current production lines, operational since 2009, are from CMI-FPE and we are happy with the technology as well as their service. We are pleased to combine our strengths to meet the growing demands of the marketplace.”
Husain added: “Our project will be financed through a combination of debt and equity and we are in the final stages of discussion with the banks.”
The addition of the new CGL not only doubles AGIS’s production capacity, but also increases its product basket considerably, thereby widening its customer base, a statementsaid.
AGIS will now be able to supply galvanized coils measuring from 0.20 mm to 2.50 mm, which will take care of the requirements of the HVAC, PEB, PPGI, electrical panels, white goods and construction industries in the Mena region. This capacity addition will also enable AGIS to meet the entire requirements of the UAE market through local production.
AGIS is a joint venture between the Al Ghurair Group and global steel-making giant Nippon Steel & Sumitomo Metals Corporation (NSSMC) of Japan.
CMI-FPE has developed a wide range of technologies in the field of processing lines, rolling mills, thermal and chemical processes. – TradeArabia News Service