Emirates Steel Arkan signed an MoU with Abu Dhabi Department of Economic Development and ITOCHU Corporation to establish a first-of-its-kind eco iron production complex in Abu Dhabi. The complex will play a significant role in the global supply chain for low-carbon iron and contribute towards achieving the UAE Net-Zero 2050 strategic initiative.

Emirates Steel Arkan (ADX: EMSTEEL), one of the largest publicly traded steel and building materials manufacturers in the region, signed a Memorandum of Understanding (MoU) with the Abu Dhabi Department of Economic Development (ADDED) andITOCHU Corporation to pursue studies focused on the establishment of an integrated steel production complex in Abu Dhabi.

In partnership with ITOCHU Corporation and facilitated by ADDED, Emirates Steel Arkan aims to establish an 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.

Eng. Saeed Ghumran Al Remeithi, Group CEO, said,”As part of our commitmentto join efforts with industry leaders that share our ambitions to provide low emission solutions to the global steel industry,we are proud to partner with ITOCHU Corporation once again to establish a first of its kind low carboniron production complex in Abu Dhabi. This collaboration,with the support of the Abu Dhabi Department of Economic Development, will ultimately enable us to capture and meet the growing demand for environmentally friendly steel products while strengthening the UAE’s sustainable industrial ecosystem.”

Commenting on the partnership, Eng. Arafat Al Yafei, Executive Director of ADDED’s Industrial Development Bureau (IDB),said, “This partnership is in line with theCOP28 objectives to support achieving net zero target andthe strategic objectives of Abu Dhabi Industrial Strategy that aims to boost the manufacturing sector through developing the value chains of the targeted sector such as transportation and machineries subsectors. Our partnership with Emirates Steel Arkan and ITOCHU will further strengthen the manufacturing sector and its ties with international investors, helping to reinforce Abu Dhabi as the most competitive industrial hub in the region.

Kenji Otsuka, CEO for Middle East Bloc, ITOCHU Corporation, said: “We are also proud to be a part of core members to pursue achieving the goal. The goal 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 “greenalization”. In this project, ITOCHU will be responsible for sourcing the high-grade iron ore through the network built by trading and investment activities over the decades, Emirates Steel Arkan will utilize the experience of successful operation of the direct reduction plant with carbon capture, utilization and storage “CCUS” facility, which leads the way on carbon capture and JFE Steel will use the ferrous raw material produced through this project as a steelmaking raw material and promote CO2 emission reduction.”

Emirates Steel Arkan also signeda MoU with DNV, Business Assurance Group, on the side-lines the 10th National Dialogue on Climate Ambition that took place on 30th May. The MoU formalized the intention of both parties to collaborate on various initiatives, including steel decarbonization, ESG and energy transition. This partnership signifies Emirates Steel Arkan’s commitment to driving the industry towards net zero and advancing sustainable practices in line with the UAE’s strategic initiative to achieve climate neutrality by 2050.