Al Ghurair Iron & Steel, a subsidiary of the Al Ghurair Group and the first steel cold rolling & galvanizing complex in the UAE, has entered into a strategic alliance with Nippon Steel Corporation Japan’s largest and one of the biggest steel makers in the world with an actual production of 35 million tonnes in 2010 financial year.
AGIS located in the Industrial City of Abu Dhabi, Mussafah, Abu Dhabi, commenced commercial production in 2009 with a pickling line, a cold rolling mill and a galvanizing line. Since the first year of commercial production, AGIS has achieved a high level of operation and sales by taking advantage of its location in the UAE as an international physical distribution base while expanding its customer network in the market of flat steel products applied to construction in the Middle East, North Africa and West Asia.
NSC has signed an agreement for equity investment in AGIS through a share transfer by which, NSC is to secure 20% of voting rights in AGIS with AGIS becoming an equity method affiliate of NSC for accounting purposes. The Al Ghurair Group through its investment company-SAG Investments & Trading LLC now holds 80% shares in AGIS.
The formal agreements were signed by Mr Majid Saif Al Ghurair MD of SAG Investments & Trading LLC and Mr Shinya Higuchi MD of NSC on November 13th 2011 in Dubai. The agreement brings the strengths of NSC and AGIS, by leveraging NSC’s technical strengths and global network and AGIS's local industry and market expertise to deliver high quality galvanized steel in a very cost effective and efficient manner to customers in the region.
The new Board of Directors of AGIS comprises of Mr Majid Saif Al Ghurair, Mr Ahmed Husain Lafir, Mr Saeed Saif Al Ghurair, Mr Abu Bucker Husain & Mr Hideki Ogawa. Mr Majid Al Ghurair continues to be the Chairman of the Board of Directors of AGIS. There will be no change in the day to day management of the company and Mr Abu Bucker Husain shall continue as the Chief Executive Officer of AGIS.
Mr Abu Bucker Husain CEO AGIS said that "NSC's technical strengths and resources will be of great benefit particularly during our upcoming expansion program to double our galvanizing capacity. AGIS and NSC share a clear focus on delivering superior quality products to their Customers as well as having s strong commitment to employee safety and protection of environment. Additionally, the combination of the companies’ global and local strengths will ensure a consistent supply of high quality raw material for our operations.”
Mr Husain said that “By teaming up with one of the leading top tier global steel makers, AGIS will be able to leverage NSC’s global network and vast resources to enhance its presence and impact a larger audience both locally and regionally. We are pleased to combine our strengths to meet the growing demands of the marketplace.”
