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Emirates Steel signs Dhs1bn agreement with Abu Dhabi Ports

Emirates Steel signs Dhs1bn agreement with Abu Dhabi Ports

The agreement will be implemented in January 2021 and will extend over the following 10 years

Emirates Steel has signed a Dhs1bn agreement with Abu Dhabi Marine Services (Safeen), a subsidiary of Abu Dhabi Ports, it was announced on Wednesday.

The agreement will be implemented in January 2021 and will extend over the following 10 years, a statement said.

As per the agreement, Safeen will provide short marine shipping services for three shipments of iron ore per month to Emirates Steel, a subsidiary of the General Holding Corporation (Senaat).

Safeen will also be responsible for the purchase, rental, delivery, operation and maintenance of cargo ships, trailers and unloading equipment for Emirates Steel.

Located in Industrial City, some 35km away from the main Abu Dhabi city centre, Emirates Steel is the only integrated steel plant in the UAE, utilising rolling mill technology to produce rebar, wire rod and heavy sections.

Saeed Ghumran Al Remeithi, CEO of Emirates Steel, said the agreement was part of efforts to improve its production capacity in Abu Dhabi.

“This agreement is the result of a joint effort that has lasted over a year… and comes following a tendering process, which attracted a diverse and international range of industry leaders,” he said.

Adil Banihammad, acting CEO – Marine Services, Safeen, said: “The agreement with Emirates Steel is one of our biggest and most significant deals to date. Safeen will be expanding its portfolio of services by offering lighterage for the first time, complementing other maritime and quayside-support services. We see huge demand, especially in the Gulf, for the marine shipping sector.”

Last month, Emirates Steel finalised a new $400m Murabaha facility as part of a loan refinancing deal to simplify its debt structure and fund its growth plans.

The loan facility has a tenure of four years and is structured as an unsecured amortising term loan.

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