In a transformative move towards sustainable industrial development, the Abu Dhabi Department of Economic Development (ADDED), Emirates Steel Arkan, and ITOCHU Corporation have inked a momentous Memorandum of Understanding (MoU). This partnership heralds an ambitious endeavor to establish an integrated steel production complex in Abu Dhabi, redefining the future of the global supply chain for low-carbon iron.

Emirates Steel Arkan, with the facilitation of ADDED, seeks to play a significant role in the international low-carbon iron supply chain and contribute to the UAE Net-Zero 2050 strategic initiative. The envisioned iron production complex in Abu Dhabi holds the promise of driving sustainable growth in the country's industrial ecosystem, while concurrently catering to the escalating global demand for environmentally friendly steel products.

Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, expresses pride in collaborating with industry leaders who share a common vision of providing low-emission solutions to the global steel industry. The partnership with ITOCHU Corporation represents a pioneering effort to establish a state-of-the-art low-carbon iron production complex in Abu Dhabi. Al Remeithi affirms that this collaboration, supported by the Abu Dhabi Department of Economic Development, will enable them to meet the growing demand for environmentally friendly steel products and fortify the UAE's sustainable industrial ecosystem.

Eng. Arafat Al Yafei, Executive Director of ADDED's Industrial Development Bureau (IDB), emphasizes that this partnership aligns with the COP28 objectives to support the net-zero target and the strategic goals of the Abu Dhabi Industrial Strategy. By developing the value chains of targeted sectors such as transportation and machinery subsectors, this collaboration between Emirates Steel Arkan, ITOCHU, and ADDED will bolster the manufacturing sector and its ties with international investors, further solidifying Abu Dhabi's position as the most competitive industrial hub in the region.

Kenji Otsuka, CEO for the Middle East Bloc at ITOCHU Corporation, expresses pride in being a core member of the transformative project. The objective of this groundbreaking endeavor is to establish a low-carbon emission iron supply chain, reducing the carbon footprint and contributing to the "greenalisation" of the global iron and steel industries. ITOCHU's role will involve sourcing high-grade iron ore through its extensive network built through decades of trading and investment activities. Emirates Steel Arkan will leverage its experience in operating a direct reduction plant with carbon capture, utilization, and storage (CCUS) facilities, setting an example in carbon capture practices. JFE Steel will utilize the ferrous raw material produced by this project to promote CO₂ emission reduction in steelmaking.

In parallel, Emirates Steel Arkan has signed a Memorandum of Understanding with DNV Business Assurance Group during the 10th National Dialogue on Climate Ambition. This collaboration solidifies their commitment to steel decarbonization, ESG practices, and energy transition. Through this partnership, Emirates Steel Arkan aims to lead the industry towards achieving net-zero emissions and advancing sustainable practices, aligning with the UAE's strategic initiative to achieve climate neutrality by 2050.

With the signing of these significant agreements, Abu Dhabi takes a monumental step towards becoming a global leader in low-carbon iron production. The establishment of the integrated steel production complex not only positions Abu Dhabi at the forefront of sustainable industrial growth but also paves the way for a greener and more resilient future for the steel industry on a global scale.

Emirates Steel Exempted from Import Duty in Saudi Arab

Related Stories