EMSTEEL announces Asset Enhancement Programme valued at $170.1mln
EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, has announced the launch of its Asset Enhancement Programme - a strategic initiative with a CapEx of approximately AED625 million, designed to enhance production capabilities and introduce advanced steel solutions to meet growing market demands.
The programme directly aligns with the UAE's Operation 300bn, aiming to upscale innovation in the UAE's industrial sector and strengthen its role in stimulating the national economy.
By advancing the development and production of high-quality, value-added solutions, this initiative supports the UAE's vision of becoming a global leader in manufacturing and industrial excellence.
Phase 1 of the enhancement programme will focus on upgrading EMSTEEL's existing rolling mills to enhance production capabilities. This includes the introduction of a new generation of high-strength rebars and advanced heavy-section products, significantly expanding EMSTEEL's product portfolio to cater to evolving market demands.
Key innovation upgrades during this phase will include advanced shear systems to enable the production of high strength rebars for sustainable construction. This includes EMSTEEL's flagship ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to improve structural integrity while reducing material usage.
The advanced tensile properties of the ES600 contribute to decarbonising the construction industry by lowering steel consumption, reducing transportation emissions, and cutting overall carbon footprint.
Phase 1 of the enhancement programme will also enable EMSTEEL to leverage state-of-the-art rolling mill technology to produce quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel. This ensures enhanced strength and resilience for demanding applications across high-rise buildings, large-scale infrastructure projects, and the multi-faceted web of assets available in today's energy sector.
QST enhances steel toughness and wear resistance by using rapid cooling, improving its mechanical properties without compromising weldability, while TMCP optimises the steel's microstructure through controlled rolling and cooling, resulting in high strength, excellent weldability, and improved impact resistance which are critical for structures exposed to extreme loads and harsh environmental conditions.
Phase 2 will include the installation of a new wire rod outlet with a capacity up to 500 KTPA, along with the upgrades of a cooling conveyor at existing rolling mills. These enhancements will enable the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. To support this expansion, EMSTEEL will also upgrade its steel melt shop with state-of-the-art VD technology and enhancements to billet casters, ensuring the production of high-carbon and special alloy billets required for the new product range.
These investments support EMSTEEL's strategic shift from producing standard, commodity-grade steel to specialised, high-value products that offer enhanced strength, durability, and efficiency for critical applications. This transition not only strengthens customer retention but also positions EMSTEEL to capitalise on the growing regional demand for premium steel solutions.
The GCC market currently relies on imports for VA-grade wire rod products, with demand expected to grow at a CAGR of 7-10% over the next decade. By overcoming existing mill limitations and expanding its product portfolio, EMSTEEL is poised to enhance its competitive positioning in key sectors, including infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components.
The enhancement project follows an ambitious timeline, with EMSTEEL's first rolling mill upgrade set for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027, further enhancing EMSTEEL's capabilities. Upon completion, this initiative will significantly strengthen the company's market position, expand its customer base, and drive additional EBITDA growth.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said, 'As industries evolve and infrastructure projects grow more demanding, the need for higher-grade steel is becoming paramount. Without continuous investment in advanced steel solutions, manufacturers risk falling behind in a competitive global market. EMSTEEL's strategic transformation ensures that it stays ahead of industry trends, providing state-of-the-art materials that meet the growing needs of modern construction, energy, and industrial projects.'
He added, 'We are not just enhancing our production capabilities; we are redefining industry standards and pioneering solutions that will shape the skylines of tomorrow. By investing in innovation and sustainability, we reaffirm our commitment to delivering world-class steel products that drive economic growth across the UAE and beyond.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
3 days ago
- Arabian Post
UAE Pushes for Trade Deal to Counteract U.S. Metal Tariffs
Arabian Post Staff -Dubai The United Arab Emirates and the United States are preparing to initiate negotiations for a potential bilateral trade agreement aimed at reducing or eliminating tariffs imposed during President Donald Trump's administration on UAE steel and aluminium exports. These tariffs include a baseline 10% duty and a specific 25% tariff on steel and aluminium—which the Trump administration plans to double to 50%. The UAE, whose steel and aluminium are significant non-oil exports and accounted for 8% of U.S. steel and aluminium consumption in 2024, is looking to leverage its history of swiftly concluded trade deals with nations such as India, Turkey, and Australia. While the U.S. may pursue a limited agreement rather than a full free trade pact, it is expected to be labeled a Comprehensive Economic Partnership Agreement , consistent with the UAE's past trade deals. ADVERTISEMENT The UAE, Washington's largest trade partner in the Middle East with $34.4 billion in bilateral trade in 2024, is also a major U.S. investor and security ally, hosting American troops and planning $1.4 trillion in future U.S. investments. Both sides reportedly responded positively to the idea during Trump's recent visit to Abu Dhabi, though a timeline for formal talks remains unclear. The Trump administration's decision to double tariffs on imported steel and aluminium to 50% took effect on June 4, 2025, impacting nearly all trading partners except the United Kingdom, which has a preliminary trade agreement with the U.S. The policy significantly affects major U.S. trading partners like Canada and Mexico, with Canada being the leading exporter of aluminium to the U.S. and both countries ranking high in steel exports. UAE-based steel producers expect to escape major impact from the latest move by the U.S. to double tariffs on steel imports. The new tariffs apply to all trading partners except the UK, which struck a preliminary trade agreement with the U.S. last month. However, steel manufacturers in the UAE don't anticipate a hard hit. The U.S. decision to double steel import tariffs 'may have an indirect effect on market dynamics but is not expected to materially impact Emsteel's business,' said Michael Rion, chief commercial officer at Emirates Steel, part of Abu Dhabi-listed Emsteel Group. The company has a 'modest exposure' to the U.S. market, with exports accounting for less than 2% of total annual sales. The UAE's push for a trade agreement with the U.S. is part of its broader strategy to mitigate the impact of increased tariffs and strengthen economic ties. The potential agreement, discussed during President Trump's visit to Abu Dhabi, seeks to address the challenges posed by the new tariffs and reinforce the economic partnership between the two nations.
Al Etihad
3 days ago
- Al Etihad
EMSTEEL transforms steel waste into cement in pioneering sustainability project
4 June 2025 23:32 SARA ALZAABI (ABU DHABI)In a regional first, Abu Dhabi-based manufacturer EMSTEEL has converted steel waste into low-carbon cement through a large-scale project, setting new standards for circular economy practices in the industrial marks the pioneering milestone in time for World Environment Day, which is observed on June 5 every to Aletihad, Eng. Saeed Ghumran Al Remeithi, Group CEO EMSTEEL, expressed pride in their team's successful recycling of steel slag, a byproduct of steel-making, into 10,000 tonnes of cement."This initiative is not only technologically significant but also sets a new benchmark for how industrial by-products can be transformed into valuable resources. It affirms the feasibility of industrial circularity and positions us at the forefront of sustainable innovation in heavy industry," Al Remeithi achievement, he added, is a significant step toward EMSTEEL's 2030 climate goals: a 40% absolute greenhouse gas reduction from its steel division and a 30% reduction from its cement division."By incorporating steel slag at scale as a raw material for clinker and cement production, we are reinforcing our commitment to sustainability and creating a practical model for circular industrial operations," the group CEO pilot project also serves as a distinctive example of how the integration of steel and cement operations enhances efficiency while advancing sustainability operations across steel and cement sectors allows companies to innovate, capture emissions reduction, and unlock hidden value at scale, Al Remeithi said."EMSTEEL's model exemplifies how vertical integration can serve as a blueprint for other industrial players seeking to decarbonise while maintaining profitability. It is a strong signal that the future of heavy industry lies in collaboration, resource efficiency, and smart, circular design," he said. Climate GoalsThrough its latest circular economy project, EMSTEEL reaffirms its commitment to supporting the UAE's climate ambitions. "We are dedicated to driving industrial decarbonisation in line with the UAE's goal of a 27% reduction in industrial emissions by 2035 from 2019 levels,"Al Remeithi said. "The group has already made substantial progress in reducing Scope 1 and Scope 2 emissions, as well as emissions intensity between 2019 and 2023. As of 2023, our total Scope 1 and 2 emissions stood at 4.5 million tonnes of carbon dioxide - 23% below the baseline year of 2019. We are also on track to fully power our operations with clean and renewable energy by 2030." Source: Aletihad - Abu Dhabi
ME Construction
6 days ago
- ME Construction
EMSTEEL partners with Magsort to produce decarbonised cement
Sustainability EMSTEEL partners with Magsort to produce decarbonised cement By EMSTEEL has said that it has achieved a significant milestone in its decarbonisation journey by entering into a strategic partnership with Finnish company Magsort to produce decarbonised cement. The partnership builds upon the group's success in implementing an industrial scale pilot for decarbonised cement production at its Al Ain facility. The pilot utilised 10,000t of […] EMSTEEL has said that it has achieved a significant milestone in its decarbonisation journey by entering into a strategic partnership with Finnish company Magsort to produce decarbonised cement. The partnership builds upon the group's success in implementing an industrial scale pilot for decarbonised cement production at its Al Ain facility. The pilot utilised 10,000t of materials that reduce carbon, which were developed by incorporating steel slag, a statement from the company explained. The pilot project is said to provide a unique use-case for complementary operations between its two main business lines: Steel and Cement. This is achieved by incorporating steel slag at scale as raw material for clinker and cement production, reinforcing the group's commitment towards driving sustainability in the sector. Due to its diverse product range, EMSTEEL in uniquely positioned to pioneer a viable and practical circular economy case study. This simultaneously underscores EMSTEEL's strategic capability to expedite decarbonisation efforts across diverse sectors and strengthens its standing as a regional sustainability leader, setting new benchmarks for industrial innovation in developing low-carbon cement, the statement explained. To meet the growing demand for low-carbon cement in the local market, the company has set its sights on constructing an integrated line at its Al Ain plant. This line will process steel residue and refine materials sourced from EMSTEEL's steel plant in Abu Dhabi. This initiative marks a significant step forward, and it is anticipated to directly reduce Scope 1 carbon dioxide emissions. Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL said, 'This is a proud moment for EMSTEEL and a strong signal of what is possible when innovation meets ambition. By transforming steel slag into a valuable input for cement, we are not only cutting emissions but also proving the commercial value of industrial circularity. Our integrated model is unlocking real results, and this milestone is a testament to our commitment to accelerate our decarbonisation journey and help deliver the UAE's Net Zero vision.' Hugo Losada, CEO of Emirates Cement, part of EMSTEEL Group added, 'This milestone represents an important step in our decarbonisation journey. Proving the technical and commercial viability of this decarbonisation effort is a promising sign that we will be able to achieve our objective of hitting the 2030 decarbonisation targets by 2026. We look forward to continuing this very fruitful co-operation with Magsort over the years to come.' Kalevi Kostiainen, CEO of Magsort remarked, 'We are extremely happy in achieving this key milestone in Abu Dhabi. The co-operation with Emirates Cement has been incredibly productive and this facility serves as a large-scale example for the industry on how to achieve significant CO₂ reduction with today's technology and existing materials. It's a clear win-win for the cement and steel industries. We would like to thank Emirates Cement for leading the way and taking action.' This initiative is a core component of EMSTEEL's decarbonisation strategy. The company aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its Steel Business Unit and by 30% reduction in its Cement Business Unit by 2030, using 2019 as the baseline year. EMSTEEL remains firmly committed to reaching net-zero emissions by 2050, the statement concluded.
