AJ Steel, the UAE-based steel pipe manufacturer and exporter, has signed an agreement with the integrated trade, logistics, and industrial hub of Abu Dhabi, Khalifa Economic Zones Abu Dhabi - KEZAD Group, for the development and operation of a large-scale steel pipe production facility in Abu Dhabi.
In a statement, the company said that the move will help to meet growing consumer demand. Under the terms of the agreement, AJ Steel will expand its current operations in KEZAD through the development of a plot covering close to 96,000 square metres, which will bring its total to 200,000 square metres of leased land under industrial use.
The signing follows the recent launch of a new production line at AJ Steel at its factory currently in operation at KEZAD. It plans to enhance its production capacity from 0.5 million tonnes to 1.25 million tonnes by adding API-compliant steel pipe capacities from 1/2” to 20” sizes for oil and gas applications, the statement said.
Using state-of-the-art machinery and technology, the company maintains high-quality production levels that meet the stringent requirements of customers across the GCC, USA, Canada, the UK, Europe, and Australia, it added.
M. Ismail, Executive Director, AJ Steel, said: “The strategic location of AJ Steel in Abu Dhabi coupled with ongoing focus of UAE Government through initiatives like “Make it in the Emirates” have been major contributing factors towards our trusted reputation for high-quality and innovative products across key global markets.
The agreement to expand our operations leverages the readiness of the land area available in KEZAD and will allow us to maximise the benefits of its fully integrated trade and logistics ecosystem to serve an even broader scope of consumers both in the UAE and the wider region.”
Established in 2006, Ajmal Steel Tubes & Pipes Industries (AJ Steel) has grown to become a global brand. From its facilities in Abu Dhabi, the company uses integrated process systems to provide smart and custom solutions for a diverse range of applications across Oil and Gas, Irrigation, Water Supply and Sewage, Scaffolding, Firefighting, Heavy Infrastructure, Structural Steel, and Geothermal Energy projects.
Mohamed Al Khadar Al Ahmed, Chief Executive Officer - Khalifa Economic Zones Abu Dhabi - KEZAD Group, added: “We welcome the continued confidence of AJ Steel in KEZAD Group, which reflects our steadfast commitment to driving business growth for customers through our integrated industrial offering and strategic position at the crossroads between East and West.
The ongoing success of AJ Steel in Abu Dhabi is a testament to the vision of our wise leadership to stimulate the growth of our nation’s industrial sector and position the emirate as a global trade hub. We look forward to being a part of their growth journey and future expansion plans,” he concluded.