Emirates Steel Arkan signs a 5-year $2 billion contract with Bahrain firm
- 17 Jan 2024
Emirates Steel Arkan (ESA), one of the largest publicly traded steel and building materials manufacturers in the region, signed a 5-year iron ore pellets supply contract with global leader in high-grade iron-ore pellets (IOP) Bahrain Steel Company (BSC). The contract, valued for approximately $2 billion, was formalised at the Industrial Partnership for Sustainable Economic Growth initiative, held recently in Bahrain.
Rooted in a 16x growth since 2009, Emirates Steel Arkan partnership with Bahrain Steel Company extends with this new contract, aiming for even greater heights in sourcing IOP.
Under this agreement, Bahrain Steel will supply high-grade iron ore oxide pellets annually to Emirates Steel Arkan. This partnership is poised to significantly impact the iron and steel industry within the region, fostering sustainable economic growth and exemplifying the potential of cross-border collaborations.
Eng. Saeed Ghumran Al Remeithi, Group CEO at Emirates Steel Arkan, said, “Through this strategic partnership, we aim to not only foster integrated industrial growth, ensure a stable supply chain and enhance the foundations of our steel manufacturing capabilities, but also strengthen economic ties within the GCC. This initiative is in line with the UAE’s vision of bolstering partnerships and enhancing multilateral cooperation, as well as the goals of the Integrated Industrial Partnership for Sustainable Economic Development which was launched in 2022 to achieve integration in resources, capabilities and experiences owned by the partnership countries.”
Dilip George, Group CEO at Bahrain Steel, expressed his enthusiasm about the partnership, stating, “This historic collaboration between Bahrain Steel and Emirates Steel Arkan signifies a new era of cooperation and growth for our organisations. We are honored to play a crucial role in supporting the economic development initiatives outlined in the Industrial Partnership for Sustainable Economic Growth. The 5-year contract underscores our commitment to delivering high-quality iron ore oxide pellets to meet the evolving needs of Emirates Steel Arkan.”
The signing ceremony, which is part of the collaborative initiative comprising the United Arab Emirates, Egypt, Jordan, and Bahrain, marked a key milestone in fostering economic ties within the region. It also solidifies a strategic alliance between Emirates Steel Arkan and Bahrain Steel, further enhancing both companies’ growth prospects over the next five years.
Emirates Steel Arkan (the Group) is a public joint stock company and the UAE’s largest steel and building materials manufacturer.
The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.
Emirates Steel Arkan is committed to contributing to the UAE’s industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonised steel manufacturers in the world and is recognised for its world-class safety performance.