Abu Dhabi, United Arab Emirates: Emirates Steel Arkan (ADX: EMSTEEL), one of the largest publicly traded steel and building materials manufacturers in the region, AD Ports Group (ADX: ADPORTS), one of the world’s premier facilitators of logistics, industry, and trade, ITOCHU Corporation and JFE Steel have signed a non-binding Memorandum of Understanding (MoU) to collaborate on activities related to the establishment of an integrated low-carbon iron supply chain complex in Abu Dhabi.

The MoU was exchanged during the UAE-Japan Business Forum in Abu Dhabi in the presence of Japanese Prime Minister Fumio Kishida and H.H. Sheikh Hamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council.

The complex, a first of its kind in Abu Dhabi, aims to produce low carbon emission raw materials for use in steelmaking; this would include materials such as Hot Briquetted Iron (HBI) and Low Carbon Emission Iron, further enabling Emirates Steel Arkan to capture and meet the growing demand for environmentally friendly steel products while strengthening the UAE’s sustainable industrial ecosystem.

As part of the MoU, the parties will develop a joint framework for collaboration related to the logistics and digital supply chain requirements for the new low-carbon iron supply chain as well as share information and expertise on industry best practices. AD Ports Group will be responsible for providing the land for new plant in KEZAD Musaffah, as well as offering maritime/logistics services for the supply of Iron Ore to new plant and the export of low-carbon emission raw materials around the world. The Group may also provide a jetty for the receipt of Iron Ore and dispatch of steel products on a Build Own and Operate (BOO) basis.

The new project is envisioned to be constructed over several phases and include pellet plants, direct reduction plants, smelter furnaces and other relevant infrastructure. The project plan also aims to benefit from Emirates Steel Arkan’s extensive decarbonization expertise and utilize clean and green energy sources including solar and hydrogen.

Eng. Saeed Ghumran Al Remeithi, Group CEO, said, “At Emirates Steel Arkan, we firmly believe that partnerships are vital in our journey towards establishing a green steel hub and driving sustainable growth in the UAE, the region and worldwide. Our collaborative efforts bring together diverse stakeholders, like AD Ports Group, to collectively work towards the common goal of contributing to achieving the UAE Net-Zero 2050 strategic initiative, and this complex serves as a testament to our commitment to sustainable progress.”

He added: “This project holds immense strategic importance to Abu Dhabi as it not only enhances our industrial capabilities but also demonstrates our commitment to fostering innovation, sustainability, and economic diversification. By leveraging the expertise and resources of our partners, we aim to create a world-class steel production complex that provides low-emission solutions to the global steel industry, further setting new standards in quality and environmental stewardship."

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, said, “Through this collaboration, AD Ports Group will leverage our significant expertise in the logistics industry sector, as well as our diverse maritime services, to establish an advanced integrated low-carbon steel production complex. This ground-breaking initiative will not only meet the growing demand for environmentally friendly steel products, but also strengthen the UAE's position as a global leader in sustainable steel production and a driving force behind decarbonization.

He added, “Responsible growth through innovation and collaboration is one of our Group’s guiding principles, we believe in the power of partnerships to drive meaningful change. In line with our wise leadership’s vision, we will continue to forge a path towards economic diversification, as well as a sustainable future, where logistics, industry, and trade coexist harmoniously with our planet."

Keita Ishii, President & Chief Operating Officer of ITOCHU Corporation, said, “We are also proud to be a part of this exciting project with established UAE partners, to pursue joint goal of decarbonization. The target of the project is to create a low carbon emission iron supply chain reducing the carbon footprint and contribute to the global iron and steel industries heading to “greenalisation”.

He added: “ITOCHU will leverage our experiences and networks developed over many years engaging in natural resource investments and trading business, together with our experience in establishing many new projects in the Middle-Eastern Regions.”

Yoshihisa Kitano, President and CEO of JFE Steel Corporation, said “By achieving this project which also assumes the installation of CCUS, not only we can contribute to the UAE’s energy transition policies but we would also be able to contribute in de-carbonization of the Japanese Steel Industry through securing stable supply of low-carbon materials.”

He added: “With the strong support from AD Ports Group which we are honored of having the opportunity to sign MoU, we would highly appreciate the strong support from both of the countries, in order for the three companies to achieve this project as one team.”

Recently, Emirates Steel Arkan also signed a MoU with the Abu Dhabi Department of Economic Development (ADDED) and ITOCHU Corporation to pursue studies focused on the establishment of an integrated steel production complex in Abu Dhabi. The MoU aims to establish a low emissions iron production complex in Abu Dhabi that will play a significant role in the global supply chain for low-carbon iron, drive sustainable growth in the country’s low-carbon iron supply chain and contribute towards achieving the UAE Net-Zero 2050 strategic initiative. 

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About Emirates Steel Arkan (ESA)

Emirates Steel Arkan (the Group) is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and more than 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.

Emirates Steel Arkan is committed to contributing to the UAE's industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is also among the leading decarbonized steel manufacturers in the world and is recognized for its world-class safety performance.

The Group’s steel and building materials have been used in some of the UAE’s most iconic construction projects, including the Burj Khalifa, Emirates Palace, Etihad Towers, Yas Island, and more.

Emirates Steel Arkan is majority owned by ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

For more information, please visit our website: www.emiratessteelarkan.com  

About AD Ports Group:

Established in 2006, AD Ports Group today serves as one of the world’s premier facilitators of logistics, industry, and trade, as well as a bridge linking Abu Dhabi to the world. Listed on the Abu Dhabi Securities Exchange (ADX: ADPORTS), AD Ports Group’s vertically integrated business approach has proven instrumental in driving the emirate’s economic development over the past decade.

Operating several clusters covering Ports, Economic Cities & Free Zones, Maritime, Logistics, and Digital, AD Ports Group’s portfolio comprises 10 ports and terminals, and more than 550 square kilometres of economic zones under KEZAD Group, the largest integrated trade, logistics, and industrial business grouping in the Middle East.

AD Ports Group is rated A+ by S&P and A+ Outlook Stable by Fitch.

For more information, please visit: adportsgroup.com

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For more information, please contact:
Sana Maadad, Director Communication
AD Ports Group
Sana.maadad@adports .ae

About ITOCHU Corporation

ITOCHU Corporation, one of the leading sogo shosha, is engaging in domestic trading, import/export, and overseas trading of various products such as textile, machinery, metals, minerals, energy, chemicals, food, general products, realty, information and communications technology, and finance, as well as business investment in Japan and overseas with approximately 90 bases in 61 countries.

About JFE Steel Corporation

JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 3,881 billion yen and consolidated crude steel output of 25.48 million tons in the fiscal year ended March 2023.