AJ Steel to grow operations in Abu Dhabi with 96,000sqm facility expansion

The signing follows the recent launch of a new production line at AJ Steel at its factory currently in operation at KEZAD

UAE-based AJ Steel and Khalifa Economic Zones Abu Dhabi – KEZAD Group have signed an agreement for the development and operation of a large-scale steel pipe production facility in Abu Dhabi. The entities said the move will help to meet growing consumer demand.

The agreement will see AJ Steel expand its current operations in KEZAD through the development of a plot covering close to 96,000sqm, bringing its total to 200,000sqm of leased land under industrial use, the statement noted.

Mohamed Al Khadar Al Ahmed, Chief Executive Officer – Khalifa Economic Zones Abu Dhabi – KEZAD Group added, “We welcome the continued confidence of AJ Steel in KEZAD Group, which reflects our steadfast commitment to driving business growth for customers through our integrated industrial offering and strategic position at the crossroads between East and West.”

In September 2022, JO Steel Holdings said it secured $692mn in credit to set up a steel plant in Saudi Arabia and, later in the month, it was announced that Saudi Arabia would develop iron and steel projects worth $9.31bn.

“The ongoing success of AJ Steel in Abu Dhabi is a testament to the vision of our wise leadership to stimulate the growth of our nation’s industrial sector and position the emirate as a global trade hub. We look forward to being a part of their growth journey and future expansion plans.”

The signing follows the recent launch of a new production line at AJ Steel at its factory currently in operation at KEZAD. It plans to enhance its production capacity from 0.5m tonnes to 1.25m tonnes by adding API-compliant steel pipe capacities from 1/2” to 20” sizes for oil and gas applications, the statement explained.

Using state-of-the-art machinery and technology, the company maintains high-quality production levels that meet the stringent requirements of customers across the GCC, USA, Canada, the UK, Europe, and Australia, it added.

In October 2022, an electric car manufacturing unit opened in Dubai Industrial City and, later in the month, NPCC broke ground on a new 40,000sqm fabrication yard in Saudi Arabia.

Ismail, Executive Director, AJ Steel commented, “The strategic location of AJ Steel in Abu Dhabi coupled with ongoing focus of UAE Government through initiatives like “Make it in the Emirates” have been major contributing factors towards our trusted reputation for high-quality and innovative products across key global markets.”

He concluded, “The agreement to expand our operations leverages the readiness of the land area available in KEZAD and will allow us to maximise the benefits of its fully integrated trade and logistics ecosystem to serve an even broader scope of consumers both in the UAE and the wider region.”

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