Abu Dhabi Ports, the master developer, operator and manager of ports and industrial zones in the Emirate, has signed a standard Musataha agreement (SMA) with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad). The state-of-the-art facility will cater to the region’s oil and gas industry, manufacturing high quality, sour grade Longitudinal Submerged Arc Welding (LSAW) steel pipes.
The SMA will see Al Gharbia Pipe Company invest a projected total of 1.1 billion, with their new facility requiring a plot size of 200,000 square metres. Al Gharbia Pipe Company, a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan’s leading steel firms, JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI), expects the facility to be completed by March 2018. The plant will employ over 370 staff and produce up to 240,000 tons of steel pipe a year,
Al Gharbia Pipe Company will utilise Kizad’s Modular Path, integrated with Abu Dhabi’s highway network to enable the movement of large loads and structures to the city and throughout the rest of the Emirate and region as a whole.