Abu Dhabi – Mubasher: UAE-based Senaat has entered into a joint venture (JV) with a consortium made of two of Japan’s leading companies in the steel sector, namely JFE Steel Corporation and Marubeni-Itochu Steel Inc (MISI), to establish Al Gharbia Pipe Company.

The new firm will manufacture and sell large diameter high quality sour grade steel pipes that cater to the construction and energy sectors in the region, Senaat announced, adding that operations are expected to formally launch in 2018. Al Gharbia’s production capacity is set to reach 240,000 tonnes per annum, of which around 40% will be exported to neighbouring markets in the Gulf Cooperation Council (GCC), Middle East as well as north and East Africa.

With total investments nearing AED 1.1 billion, Al Gharbia “will leverage JFE Steel’s know-how for high-quality large-diameter welded steel pipes, MISI’s sales networks and Senaat’s presence in Abu Dhabi, which is looking to drive the contribution of the manufacturing sector in GDP up to 25% by 2030. Al Gharbia will be located at Khalifa Industrial Zone of Abu Dhabi (KIZAD)”.

Commenting on the JV, Senaat CEO Eng. Suhail Mubarak Bin Athaeeth Al Ameri said: “In striving to uphold our mandate of championing UAE industry and contributing to the nation’s diversification efforts Senaat will continue to expand its portfolio through global partnerships with leaders in their respective fields. The project not only meets a stringent demand at a time where being efficient in the oil and gas and other industries is more important than ever; but it is also symbolic of the strength and the calibre of the relationships that we are able to forge. Senaat has an established track record in bringing international know-how to the UAE and building local companies that can compete globally and Al Gharbia attests to that.”

“Led by a growing energy demand and increasingly stringent quality specifications as well as an industry heavily dependent on imports, Al Gharbia will address the largely unmet demand for high-quality steel pipes,” the statement revealed, adding that once operational, the new firm will join the ranks of a handful of other companies in the world capable of producing products of similar scale and quality.

Sour grade pipes are designed to prevent corrosion associated with hydrogen sulphide environments, a characteristic of offshore operations.

The Japanese consortium holds a 49% stake in the new pipe company, the statement added.