EMIRATES Steel Industries has signed a sales contract with Sweden’s LKAB to source quality iron ore pellets beginning 2013.
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Al Romaithi and Aaro sign the agreement |
Hussein J Al Nowais, chairman of Senaat, the holding company of Emirates Steel, said the contract complemented the company’s efforts to enhance the value of its steel products through sourcing of high-quality raw materials meeting international standards.
Al Nowais, also the chairman of Emirates Steel, confirmed the company would pursue further investments to accommodate the increasing demand for steel in local and regional markets.
He witnessed the contract signing by Emirates Steel CEO engineer Saeed Ghumran Al Romaithi and LKAB CEO Lars-Eric Aaro.
Al Romaithi said the long-term strategic relationship positions the Swedish firm as one of Emirates Steel’s primary suppliers of iron ore pellets. Emirates Steel, the largest integrated steelmaker in the UAE, has pellets requirements this year of around 4.8 million tonnes. These are supplied through long-term agreements which now include LKAB.
He said the new agreement will strengthen Emirates Steel’s supply in support of its future growth plans. In 2012, Emirates Steel began for the first time producing at a capacity of 3.5 million tonnes, following two expansions and investment of Dh10 billion ($ 2.72 billion). Other planned projects in the future are expected to increase the company’s output of finished products to more than 5.5 million tonnes.
Aaro said: “The agreement is a confirmation that our products are attractive in the market. Emirates Steel plays a significant role in the UAE’s steel-making industry and we are absolutely delighted to be able to support Emirates Steel’s future development by guaranteeing a stable and predictable supply of iron ore”.
LKAB is an international high-tech minerals group that produces iron ore products for the steel industry and mineral products for other industries and applications.
