Kezad signs deal to set up new rolling steel complex in Abu Dhabi

WAM

Khalifa Economic Zones Abu Dhabi (Kezad Group), an integrated trade, logistics, and industrial hub, has signed a preliminary agreement with Dana Steel, the manufacturing unit of UAE-based Dana Group, to establish its first hot and cold rolling steel complex in Abu Dhabi.

Under the terms of the agreement, Dana Steel will invest in developing a 50,000 square metre facility in Kezad, the UAE state-run WAM news agency reported.

The move will help boost Dana Steel’s manufacturing capacity in the GCC by replacing imported raw materials, such as cold rolled full hard coils.

By providing a base for Dana Steel’s 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 AED 172 billion ($46.83 billion) by 2031 through a series of transformational programmes.

Mohamed Al Khadar Al Ahmed, chief executive officer of Kezad Group, said: “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.”

In addition to hosting facilities for building metal products manufactured 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 two of the expansion, Dana Steel will install a continuous galvanising line and colour coating line in the same Kezad complex, the report stated.