SENAAT, one of the largest industrial investment holding companies in the UAE, has announced that Al Gharbia Pipe Company has reached an operational milestone by commencing commercial production of large diameter, high-quality sour grade steel pipes in Abu Dhabi.
Al Gharbia Pipe Company – a subcontractor of Habshan Trading – will begin work to supply conductor pipes for Hail and Ghasha offshore sour gas fields by Abu Dhabi National Oil Company (ADNOC).
Established as a joint venture between SENAAT and two of Japan’s leading companies in the steel sector, JFE Steel Corporation and Marubeni-Itochu Steel, Al Gharbia Pipe Company is the first industrial joint venture to take place between Abu Dhabi and Japan in the UAE, strengthening the rich history of commercial projects connecting the two nations.
The 200,000m2 plant, which broke ground in Khalifa Industrial Zone Abu Dhabi (KIZAD) in 2016, will reinforce the country’s industrial supply chain in line with Abu Dhabi Economic Vision 2030 and Abu Dhabi Industrial Strategy 2021.
The state-of-the-art facility will manufacture longitudinally welded large-diameter, thick wall, sour service, steel pipe to service the region’s construction and energy sector.
The plant’s new line is designed to make pipes up to 13.0 meters length with an outside diameter ranging from 18 to 56 inches, and the maximum wall thickness of 44.5 millimetres. Once fully operational, the plant’s annual production capacity is set to reach 240,000 tons, of which around 40 per cent will be exported to neighbouring markets in the GCC and greater Middle East, as well as North and East Africa.
H.E. Eng. Aqeel Abdulla Madhi, Chairman of Al Gharbia Pipe Company, said: “The successful commencement of production and the first order awarded by ADNOC at Al Gharbia Pipe Company demonstrates our commitment to local production of high-quality steel pipes. For the first time, this is being done on a commercial scale, at the state-of-the-art facility, to meet the growing demand arising from the regional industrial sectors including oil and gas, construction and transport. The project further strengthens the UAE’s industrial capabilities and the Made-in-UAE brand, while helping reduce dependence on sour grade steel pipes import and reinforcing the country’s export potential, creating jobs and business opportunities.
“As Abu Dhabi moves towards realizing its Vision 2030, the industrial sector remains at the heart of this country’s plan for economic diversification and growth and SENAAT will continue to play a vital role in driving forward this mandate.”
SENAAT currently manages nearly AED 27.3 billion of industrial assets and has invested in the non-oil sector an average of AED 1.6 billion a year over the last 10 years. Over the years, SENAAT has made remarkable progress in developing a modern industrial base for a diversified futuristic economy capable of competing on a local, regional and global level.