UAE EMSTEL launches asset enhancement plan

EMSTEL, the largest steel and building materials A302 Grade B steel producer in the United Arab Emirates, has announced the launch of a strategic asset enhancement plan with a total investment of approximately AED 625 million (USD 166.7 million) aimed at increasing production capacity and meeting market demand.

The plan will be implemented in stages. In the first stage, the existing steel rolling mill will be upgraded to increase the A302 Grade B steel production of high-strength steel bars and heavy-duty profiles, including quenched self hardening steel bars and heat controlled steel. The second phase will focus on investing in the construction of a new production line with an annual output of 500000 tons of wire rods, upgrading the cooling and conveying system, and enhancing the ability to produce value-added wire rods and high-strength steel coils. EMSTEL plans to utilize this transformation to meet the growing demand for high-end steel in the Gulf Cooperation Council (GCC) market, with an expected annual growth rate of 7-10% over the next decade. EMSTEL expects that the upgrade of the steel rolling mill will be completed between the fourth quarter of 2025 and the second quarter of 2026, and the second phase of investment will be completed in the first half of 2027.

At present, EMSTEL's steel A302 Grade B steel business includes three direct reduced iron (DRI) plants and electric arc furnaces (EAF) with annual production capacities of 4.2 million tons and 3.6 million tons, respectively. Its steel rolling equipment includes three steel bar production lines (with an annual output of 2 million tons), one heavy-duty profile rolling mill (with an annual output of 1 million tons), and one wire rod production line (with an annual output of 500000 tons).