Kezad Group, a subsidiary of AD Ports Group, has signed a preliminary agreement with Dana Steel for the establishment of a new steel plant in Abu Dhabi as the emirate focuses on boosting its manufacturing sector.
As part of the agreement, Dana Steel will develop a 50,000-square-metre “hot and cold rolling” steel complex that will help the company to increase its manufacturing capacity in the GCC and replace imported raw materials with a new "made in UAE" supply, AD Ports said on Friday.
Dana Steel is part of the UAE-based Dana Group, which has interests in sectors including steel, oil, retail, healthcare and hospitality. The total capacity of the new plant will be 500,000 tonnes.
“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,” said Mohamed Al Ahmed, chief executive of Kezad Group.
The agreement for the new project comes as Abu Dhabi aims to more than double the size of its manufacturing sector to Dh172 billion ($47 billion) by 2031 as part of its new industrial strategy, which was announced in June.
Abu Dhabi government is investing Dh10 billion across six industrial programmes to boost the contribution of the industrial sector to the emirate’s economy as part of the strategy.
“This project will be our ninth industrial facility within the UAE," said Ankur Dana, chief executive of Dana Steel Industry.
"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."
AD Ports, which operates industrial cities and free zones in Abu Dhabi, launched Kezad Group in September to consolidate and grow its Economic Cities and Free Zones offering, as it seeks to strengthen the emirate's position as an industrial and manufacturing centre.
The company's Khalifa Industrial Zone Abu Dhabi (Kizad) and ZonesCorp (specialised economic zones) have been integrated into Kezad Group, which comprises 12 economic zones with a total area of 550 square kilometres, including 100 square kilometres designated as free zones.