The Japanese companies that are joining Senaat in this venture are JFE Steel and Marubeni-Itochu Steel. The companies will manufacture steel pipes for customers in the energy and construction industries at a plant in Kazid. Abu Dubai will be exporting 40% of its production and decrease its dependence on steel pipe imports.
With this project, Senaat is upholding its mandate of supporting UAE industry and the country's diversification efforts, as well as expanding its portfolio through forging global partnerships. The new steel pipe should be up and running by 2018, and is expected to have a production capacity of 240,000 tons a year. While the Japanese firms are providing the steel plates for manufacturing the pipes, Senaat is also open to purchasing steel from local producers who can meet the specifications. The financing of the steel pipe company is expected to be completed this year. The Japanese businesses will have a 49% stake in the project.
Hussain al Nowais, the Chairman of Senaat, explained that through this venture Senaat is hoping to expand the country's industrial industry. This has become very crucial, as the price of oil has dropped by 50% since North America increased its energy production. Abu Dhabi depends on oil to fuel their economic growth.
Hussain al Nowais said the firm is planning to invest Dh5dn over the course of the next two years to grow the refining industry. Senaat will consider an initial public offering of one of its units sometime this year. Over the past five years, Senaat has invested over Dh16bn building up the metals sector.
Currently, Senaat manages over $6.9bn in industrial assets and employs over 15,000 individuals.