EMSTEEL, Oldendorff Carriers ink long-term shipping pact

EMSTEEL Group and Oldendorff Carriers have signed a new long-term freight agreement covering the import of EMSTEEL’s key raw materials to the UAE.

Under the renewed agreement, Oldendorff Carriers will continue to provide dedicated and efficient bulk-shipping services for EMSTEEL’s raw material imports, ensuring safe, reliable and responsible maritime logistics.

The agreement builds on more than 20 years of close collaboration between EMSTEEL and Oldendorff Carriers, reinforcing a partnership that has played a key role in supporting EMSTEEL’s industrial growth and supply chain reliability.

Structured as a five-year agreement with a total indicative value of approximately Dhs600 million over the contract term, the agreement reflects the scale and strategic importance of the partnership.

Under the agreement, Oldendorff Carriers supports the transportation of approximately 5.2 million tonnes annually of iron ore pellets (IOP) from multiple sources, serving as a critical logistical link between EMSTEEL and its IOP suppliers, and enabling seamless coordination, reliable deliveries, and strong collaboration across the supply chain.

“This long-term agreement with Oldendorff Carriers reaffirms our commitment to working with trusted partners who share our values of reliability and performance,” said Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL. He added that the agreement ensures the steady and efficient flow of EMSTEEL’s raw materials, supporting its ability to produce the steel that underpins the region’s infrastructure, industrial development, and sustainable growth.

Patrick Hutchins, CEO of Oldendorff Carriers, said, “We are proud to continue this long-standing partnership with EMSTEEL. The collaboration between our teams over the years has been built on trust and transparency, and we look forward to further strengthening our cooperation in the years ahead.”

The renewed partnership underscores the shared commitment of both companies to long-term collaboration, operational reliability and mutual growth, supporting EMSTEEL’s production requirements and the continued development of the region’s industrial sector.

EMSTEEL announced its financial results for Full Year (FY) 2025, reporting revenues of Dhs8.9 billion for FY 2025, marking a 7 per cent increase compared to the same period last year.

During 2025, EMSTEEL delivered strong operational results, increasing total steel sales volumes by 7 per cent year-on-year (YoY).

Robust UAE market demand, combined with increased finished steel output, allowed for growth of sales volumes of finished steel products by 16 per cent YoY to 3.3 million tonnes. Additionally, cement and clinker sales volumes rose by 8 per cent YoY to 3.5 million tonnes.

EBITDA reached Dhs1.2 billion, up 34 per cent YoY, with an EBITDA margin of 13.4 per cent, compared to 10.7 per cent in FY 2024. Increased sales volumes, coupled with optimisation initiatives and the continued efficient utilisation of production capacities, contributed to the improvement in the EBITDA margin.

EMSTEEL’s net profit for FY 2025 amounted to Dhs481 million, up 23 per cent compared to the same period last year. YoY growth is driven by strong operational performance.

The Emirates Steel division contributed Dhs8.0 billion in revenue, representing a 6 per cent increase compared to FY 2024, and generated Dhs1.0 billion in EBITDA, up by 51 per cent YoY.

The Emirates Cement division recorded Dhs944 million in revenue, reflecting 24 per cent YoY growth, and generated Dhs172 million in EBITDA.

Earlier Adnec Group has announced the selection of EMSTEEL, a leading UAE-based steel and construction materials manufacturer, as the Sector Partner for the Metals and Fabrication sector at Make it in the Emirates 2025. The upcoming edition will serve as a premier platform for showcasing the latest industrial developments, enhancing collaboration, and highlighting investment opportunities in the industrial sector, reinforcing Abu Dhabi’s position as a global hub for industrial innovation, investment, and strategic partnerships.

Humaid Matar Al Dhaheri, Managing Director and Group CEO of Adnec Group, said, “Bringing together industry experts, innovators, and investors, Make it in the Emirates serves as a dynamic space for in-depth discussions and insights into the latest technological developments and trends shaping the future of industrial growth. As a sector partner, EMSTEEL reinforces its role in advancing the UAE’s industrial capabilities through its commitment to innovation, sustainability, and excellence in manufacturing.”

Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, said, “EMSTEEL is pleased to sponsor the Make it in the Emirates 2025 as a sector partner, reinforcing our commitment to strengthening the UAE’s industrial sector and supporting its economic vision. As the nation’s leading manufacturer of steel and building materials, we play a pivotal role in shaping the future of the industry, driving innovation, and advancing sustainability.

WAM