Dubai Investments and BILDCO in joint venture for AED250 million steel plant
Dubai Investments on Wednesday (May 18) said it has entered into a pact with Abu Dhabi National Company for Building Materials (BILDCO), as part of which they will form a joint venture to set up an AED250 million steel plant in the UAE capital.
Dubai Investments’ wholly-owned subsidiary, Dubai Investments Industries (DII), will have 51 per cent stake in the joint venture and BILDCO holds the remaining, the Dubai-listed investment conglomerate said in a statement to the bourse.
The new plant is expected to go on stream by the end of 2017 at the Industrial City of Abu Dhabi III in Musaffah. Once fully operational, it will produce 300,000 metric tonnes of reinforced steel bars annually.
“Dubai Investments’ joint venture for the BILDCO steel plant is a major step forward, to not only cater to the domestic demand for steel with the rampant construction across the UAE, but also capitalise on the surging market requirements for steel across the Middle East,” said Khalid Bin Kalban, managing director and CEO of Dubai Investments.
According to experts, steel industry in the UAE will witness 30 per cent growth by 2020.
Bin Kalban added that the joint venture with BILDCO for the steel rebars is a strategic fit for Dubai Investments and will further strengthen the company’s leadership in the building materials domain.