Emirates Steel, the only integrated steel plant in the UAE, has signed a four-year (2018-2021) high-value contract with Brazil-based Vale, a leading producer of iron ore and pellets, to supply iron ore pellets for its steel plant in Abu Dhabi.

Emirates Steel and Vale have a long-standing business relationship that commenced in 2007 and has through this four-year contract strengthened into a strategic partnership.

Emirates Steel has an iron ore pellet requirement of around 6 million tonnes per year, said a statement.

The agreement was signed by Saeed Ghumran Al Remeithi, chief executive officer of Emirates Steel and Peter Poppinga, executive director, Vale during an official meeting held at the Emirates Steel office in the presence of senior officials from both companies, it said.

Al Remeithi said: “The agreement with Vale comes in line with our company’s strategy, which aims to secure flexible source of iron ore at competitive, stable and long term prices.”

“This new partnership plays a vital role to further strengthening the growth of our steel production in Abu Dhabi, as well as realising our vision of being a world class steel manufacturer providing the highest quality products, services and solutions to our customers and maximizing returns to our shareholders,” he said.

“We are confident that this long-term supply contract will give us more flexibility to better serve our customers, achieve our business targets and to continue our focus on operational excellence. We are delighted to have signed this agreement with Vale and look forward to working closely together,” he added.

Peter Poppinga, executive director, Vale, said: “The long-term agreement resembles the two companies visions combined in long-term partnership.”

“Also shows our company’s strong willingness to support the Middle East steel making industry through leveraging on competitiveness, productivity and performance with high quality products,” he added. – TradeArabia News Service