United Arab Emirates-based steelmaker Emirates Steel Arkan (ESA) has announced that it has signed a memorandum of understanding with Oman’s leading steelmaker Al Jazeera Steel Product Company (AJSP) to collaborate, benefit from joint expertise and seize new opportunities in steel business. The agreement also covers latter’s medium-section rolling mill under construction in Khalifa Economic Zones Abu Dhabi (KEZAD) and its existing mills.
Under the agreement, ESA will supply semis, including billets, blooms and beams to AJSP’s new mill. Both parties will also explore options for promoting and marketing finished steel products and medium sections from AJSP and heavy sections from ESA.
AJSP had ordered a new rolling mill for medium sections from Italian plantmaker Pomini Long Rolling Mills in May. The new mill in question will be able to process billets and blooms in low-to medium-carbon steel. It will have a capacity of 450,000 mt of beams per year. It will also be designed in a way to produce premium rails in the future in accordance with the international norms, including head hardened rails.
Al Jazeera Steel has a production capacity of 600,000 mt per year.