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GHC plans to spend Dh5.8 billion on steel expansion, aluminium, seamlesspipe units

ABU DHABI — General Holding will spend Dh5.8 billion in three to four years to expand its steel capacity and set up a seamless pipe, and aluminium extraction unit in the emirate to boost its industrial might.

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Abu Dhabi Basic Industries Corporation, a subsidiary of GHC is considering an aluminium and copper project, Al Nowais said.

The biggest steel makers in the region, Emirates Steel will award a contract within few months to boost its output by two million metric tonnes per annum by spending $1 billion, its chairman he said.

The bids have already been invited and within next few months we will award the contract to build the expansion infrastructure, he said. The Corporation has already appointed French bank BNP Paribas as financial advisors on raising money to finance the project. He expected that this year $600 million will be generated from a combination of debt instruments, which will be about 60-70 per cent of the total project, rest will be financed through internal resources, Al Nowais said. The funds will be required in Q3 or Q4, when the construction of phase three of Emirates Steel will begin.

Last year, Emirate Steel raised Dh660 million to fund its expansion. About the seamless pipe plant to be set up in a joint venture arrangement will attract Dh800 million investments, he said. Chairman Al Nowais said a proposal to acquire one industrial unit was actively been considered.

haseeb@khaleejtimes.com

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