Al Gharbia Pipe Company, a joint venture between UAE industrial holding firm Senaat and two of Japan’s leading companies in the steel sector – JFE Steel Corporation and Marubeni-Itochu Steel Inc (MISI) – broke ground in Khalifa Industrial Zone Abu Dhabi (Kizad) for its plant. 

Al Gharbia, set to launch operations in 2018, will be the first UAE plant to manufacture large-diameter, thick wall, sour service, longitudinally welded steel pipes to service the oil and gas transportation sector, with the infrastructure and construction sectors as secondary markets.

Once fully operational, production capacity will reach 240,000 tonnes annually, of which around 40 per cent will be exported through Khalifa Port and the road network.

The company will leverage JFE Steel’s know-how for high-quality large-diameter welded steel pipes, MISI’s sales networks and Senaat’s presence and connections in Abu Dhabi.

Kizad is owned and managed by Abu Dhabi Ports, the master developer, operator and manager of 10 non-oil ports in the emirate. 

Al Gharbia chairman Aqeel Madhi said: “Al Gharbia is set to become a worldwide benchmark with regards to the manufacturing of welded pipes, both in terms of technology and quality, as well as production efficiency. The high-calibre partnership forged between Senaat, JFE Steel and MISI will enable Al Gharbia to secure a leading position in the region.”

In August 2015, Al Gharbia awarded its EPC contract to a consortium formed by SMS Group and Larsen & Toubro Limited.

Plant investment is expected to reach $300 million.