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Emirates Steel Arkan, AD Ports Group, ITOCHU and JFE Steel Sign MoU geared towards the new Low-Carbon Iron Supply Chain

Emirates Steel Arkan, AD Ports Group, ITOCHU and JFE Steel Sign MoU geared towards the new Low-Carbon Iron Supply Chain

July 18, 2023

Abu Dhabi, United Arab Emirates, 18 July 2023: 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.