The Emirate of Abu Dhabi is revving up its industrial engine with the help of a major steel project spearheaded by Khalifa Economic Zones Abu Dhabi (KEZAD) Group and Dana Steel, a subsidiary of the Dana Group conglomerate. This collaboration promises to not only bolster Dana Steel’s manufacturing capabilities but also significantly contribute to Abu Dhabi’s ambitious industrial strategy.
At the heart of the initiative lies the construction of a first-of-its-kind hot and cold rolling steel complex within KEZAD. Spanning an area of 50,000 square meters, this facility will boast a production capacity of 500,000 metric tonnes. The project signifies a strategic move for Dana Steel, enabling it to achieve backward integration for its existing continuous galvanizing and continuous color coating operations. In simpler terms, the complex will allow Dana Steel to manufacture the raw materials it needs internally, reducing dependence on external suppliers.
This reduced reliance on imports translates into a significant advantage. By producing “Made in UAE” steel coils, Dana Steel can not only streamline its own production process but also cater to the wider needs of the Gulf Cooperation Council (GCC) market. This import substitution has the potential to create a ripple effect, stimulating economic activity within Abu Dhabi and positioning the emirate as a self-sufficient steel producer.
The Dana Steel project aligns perfectly with Abu Dhabi’s industrial strategy, unveiled in 2017. This strategic roadmap envisions more than doubling the size of the emirate’s manufacturing sector by 2031. By providing Dana Steel with a world-class industrial ecosystem, KEZAD Group is acting as a key catalyst in realizing this vision. KEZAD’s state-of-the-art infrastructure, including its efficient transportation network and proximity to Khalifa Port, provides Dana Steel with the logistical muscle it needs to flourish.
The project is expected to generate significant economic benefits for Abu Dhabi. The creation of a domestic steel supply chain is likely to spur growth in related industries, fostering a diversified and resilient manufacturing base. Additionally, the project has the potential to create new job opportunities, contributing to the emirate’s overall economic well-being.
The Dana Steel project serves as a powerful testament to Abu Dhabi’s commitment to industrial development. By fostering strategic partnerships and investing in cutting-edge infrastructure, the emirate is well on its way to establishing itself as a major industrial player in the region.
