Khalifa Economic Zones Abu Dhabi signs agreement with Dana Steel
- 30 Dec 2022
Khalifa Economic Zones Abu Dhabi (KEZAD Group), the integrated trade, logistics, and industrial hub of Abu Dhabi, has signed a preliminary agreement with Dana Steel, the flagship manufacturing unit of industrial conglomerate Dana Group, for the establishment of its first hot and cold rolling steel complex in Abu Dhabi.
Under the terms of the agreement, Dana Steel will invest to develop a 50,000 square metres facility in KEZAD. The new complex will facilitate backward integration of the company’s continuous galvanising and continuous colour coating lines and will have 500,000 Metric Tonnes Rolling Capacity. This approach will help boost Dana Steel’s manufacturing capacity in the GCC by replacing imported raw materials, such as cold rolled full hard coils, with a new ‘Made in UAE’ supply.
By providing a base for Dana Steel first facility in Abu Dhabi, KEZAD Group is extending its support for the Abu Dhabi Industrial Strategy, which looks to more than double the size of the emirate’s manufacturing sector to Dhs172 billion by 2031 through a series of transformational programmes.
Mohamed Al Khadar Al Ahmed, Chief Executive Officer, KEZAD Group, said, “Owing to the modern infrastructure and efficient transportation network offered by KEZAD and Khalifa Port, investors such as Dana Steel are selecting our industrial ecosystem as a base from which to grow their operations in the UAE and globally. By enabling vertical integration of their manufacturing supply chain, we look forward to supporting Dana Steel on its journey to serve customers and expand its international reach.”
Dr. Ankur Dana, CEO of Dana Steel Industry, said, “With worldwide demand for quality steel products set to grow, we are quite excited to start this milestone project in KEZAD, which builds upon our efforts to enhance value for our customers across continents. This project will be our 9th Industrial Facility within the UAE, several unique factors led us to choose KEZAD for this venture including the world-class infrastructure on offer, in addition to seamless connectivity to global markets and easy access to natural gas at competitive rates.”
The agreement with KEZAD Group will mark Dana Steel’s first venture in Abu Dhabi while ushering in the first Hot Rolled Pickled Oiled (HRPO) and Cold Rolled (CR) steel facility in KEZAD. In addition to hosting facilities for building metal products manufacturing in KEZAD Group’s Metals Hub, the plant will also have capabilities to recover and recycle waste acid, enabling the company to pursue a circular economy approach. In phase 2 of the expansion, Dana Steel will install a Continuous Galvanising Line (CGL) and Colour Coating Line (CGL) in the same KEZAD complex.
Last week Khalifa Economic Zones Abu Dhabi (KEZAD Group) has announced the signing of a 50-year land lease agreement with speciality tissue manufacturer, Star Paper Mill, for the establishment of a new facility to manufacture recycled Kraft Paper Jumbo reels, diversifying the company’s product offering to serve a growing demand for biodegradable packaging papers in the UAE.
Under the agreement, Star Paper Mill in collaboration with RC Paper Machines, will expand its existing capacities with an investment of Dhs200 million in a 59,000 square metre site in KEZAD to manufacture recycled kraft paper jumbo reels to be used to manufacture corrugated cartons and high in demand, 100 per cent eco-friendly biodegradable bag papers out of recycled raw materials.
Promoting the UAE capital’s environmental initiatives, the announcement comes on the back of Abu Dhabi’s milestone ban on single-use plastic bags, effective from June 1, 2022, the first in the region to introduce an integrated, single-use plastic policy to cut down the overall use of plastics to drive an eco-friendly future.
Abdullah Al Hameli, Chief Executive Officer of Economic Cities and Free Zones Cluster at AD Ports Group, said, “AD Ports Group is committed to driving sustainable manufacturing through strategic partnerships and investments within KEZAD, in line with our wise leadership’s vision to enhance industrial competitiveness while maintaining a long-term positive impact on the environment.
“Today, the Green Agenda in Abu Dhabi and the UAE is moving ahead with ambitious initiatives which are already underway, such as the transition away from single-use plastic and the incentive-based bottle return scheme. Adding to these, we are honoured to support Star Paper Mill’s product diversification efforts in KEZAD to contribute to a cleaner environment for the community and support a circular economy in the UAE.”
Hussain Adam Ali, Chairman of Star Paper Mill, said, “In line with the vision of UAE leaders, we in Star Paper Mill believe that to be successful and create long-term value in the future, being sustainable and adopting a circular system is vital. We are using this opportunity as a huge advantage for us to create products to achieve reduced carbon emissions and operate as a sustainable industry.