Bahrain Steel secures $2bn Emirates Arkan supply contract
MANAMA, January 17, 2024
Emirates Steel Arkan (ESA), one of the largest publicly traded steel and building materials manufacturers in the region, has signed a five-year iron ore pellets supply contract with global leader in high-grade iron-ore pellets (IOP) Bahrain Steel Company.
The contract, valued for approximately $2 billion, was formalised at the Industrial Partnership for Sustainable Economic Growth initiative, held recently in Bahrain.
The signing ceremony, which is part of the collaborative initiative comprising the UAE, Egypt, Jordan, and Bahrain, marked a key milestone in fostering economic ties within the region.
It also solidifies a strategic alliance between Emirates Steel Arkan and Bahrain Steel, further enhancing both companies’ growth prospects over the next five years.
Rooted in a 16x growth since 2009, ESA partnership with BSC extends with this new contract, aiming for even greater heights in sourcing IOP. Under this agreement, Bahrain Steel will supply high-grade iron ore oxide pellets annually to Emirates Steel Arkan.
This partnership is poised to significantly impact the iron and steel industry within the region, fostering sustainable economic growth and exemplifying the potential of cross-border collaborations.
Emirates Steel Arkan Group CEO Engineer Saeed Ghumran Al Remeithi said: "Through this strategic partnership, we aim to not only foster integrated industrial growth, ensure a stable supply chain and enhance the foundations of our steel manufacturing capabilities, but also strengthen economic ties within the GCC."
"This initiative is in line with the UAE’s vision of bolstering partnerships and enhancing multilateral cooperation, as well as the goals of the Integrated Industrial Partnership for Sustainable Economic Development which was launched in 2022 to achieve integration in resources, capabilities and experiences owned by the partnership countries," he added.
On the big win, Dilip George, Group CEO at Bahrain Steel, said: "This historic collaboration between Bahrain Steel and Emirates Steel Arkan signifies a new era of cooperation and growth for our organizations. We are honored to play a crucial role in supporting the economic development initiatives outlined in the Industrial Partnership for Sustainable Economic Growth."
"The 5-year contract underscores our commitment to delivering high-quality iron ore oxide pellets to meet the evolving needs of Emirates Steel Arkan," he added.-TradeArabia News Service
