EMSTEEL announces Asset Enhancement Programme valued at $170.1mln
EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, has announced the launch of its Asset Enhancement Programme - a strategic initiative with a CapEx of approximately AED625 million, designed to enhance production capabilities and introduce advanced steel solutions to meet growing market demands.
The programme directly aligns with the UAE's Operation 300bn, aiming to upscale innovation in the UAE's industrial sector and strengthen its role in stimulating the national economy.
By advancing the development and production of high-quality, value-added solutions, this initiative supports the UAE's vision of becoming a global leader in manufacturing and industrial excellence.
Phase 1 of the enhancement programme will focus on upgrading EMSTEEL's existing rolling mills to enhance production capabilities. This includes the introduction of a new generation of high-strength rebars and advanced heavy-section products, significantly expanding EMSTEEL's product portfolio to cater to evolving market demands.
Key innovation upgrades during this phase will include advanced shear systems to enable the production of high strength rebars for sustainable construction. This includes EMSTEEL's flagship ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to improve structural integrity while reducing material usage.
The advanced tensile properties of the ES600 contribute to decarbonising the construction industry by lowering steel consumption, reducing transportation emissions, and cutting overall carbon footprint.
Phase 1 of the enhancement programme will also enable EMSTEEL to leverage state-of-the-art rolling mill technology to produce quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel. This ensures enhanced strength and resilience for demanding applications across high-rise buildings, large-scale infrastructure projects, and the multi-faceted web of assets available in today's energy sector.
QST enhances steel toughness and wear resistance by using rapid cooling, improving its mechanical properties without compromising weldability, while TMCP optimises the steel's microstructure through controlled rolling and cooling, resulting in high strength, excellent weldability, and improved impact resistance which are critical for structures exposed to extreme loads and harsh environmental conditions.
Phase 2 will include the installation of a new wire rod outlet with a capacity up to 500 KTPA, along with the upgrades of a cooling conveyor at existing rolling mills. These enhancements will enable the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. To support this expansion, EMSTEEL will also upgrade its steel melt shop with state-of-the-art VD technology and enhancements to billet casters, ensuring the production of high-carbon and special alloy billets required for the new product range.
These investments support EMSTEEL's strategic shift from producing standard, commodity-grade steel to specialised, high-value products that offer enhanced strength, durability, and efficiency for critical applications. This transition not only strengthens customer retention but also positions EMSTEEL to capitalise on the growing regional demand for premium steel solutions.
The GCC market currently relies on imports for VA-grade wire rod products, with demand expected to grow at a CAGR of 7-10% over the next decade. By overcoming existing mill limitations and expanding its product portfolio, EMSTEEL is poised to enhance its competitive positioning in key sectors, including infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components.
The enhancement project follows an ambitious timeline, with EMSTEEL's first rolling mill upgrade set for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027, further enhancing EMSTEEL's capabilities. Upon completion, this initiative will significantly strengthen the company's market position, expand its customer base, and drive additional EBITDA growth.
Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said, 'As industries evolve and infrastructure projects grow more demanding, the need for higher-grade steel is becoming paramount. Without continuous investment in advanced steel solutions, manufacturers risk falling behind in a competitive global market. EMSTEEL's strategic transformation ensures that it stays ahead of industry trends, providing state-of-the-art materials that meet the growing needs of modern construction, energy, and industrial projects.'
He added, 'We are not just enhancing our production capabilities; we are redefining industry standards and pioneering solutions that will shape the skylines of tomorrow. By investing in innovation and sustainability, we reaffirm our commitment to delivering world-class steel products that drive economic growth across the UAE and beyond.'
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