UAE-based steel producer Arabian Gulf Steel Industries (AGSI) has officially commenced commercial production at its new rebar rolling mill, HRM 3, in Abu Dhabi. The new facility adds 600,000 mt of annual rolling capacity, marking a major step in expanding AGSI’s domestic production footprint and enhancing supply reliability within the UAE.
Integration with meltshop supports net-zero steel production
HRM 3 is directly hot-charged from AGSI’s steel meltshop, enabling seamless meltshop-to-rolling integration. This setup reduces energy consumption and supports the production of net-zero steel rebar. This technological integration strengthens AGSI’s sustainability strategy while improving operational efficiency.
Total rolling capacity rises to 1.24 million mt per year
With the commissioning of HRM 3, AGSI’s installed rolling capacity has increased significantly from approximately 640,000 mt per year to around 1.24 million mt per year. The company’s rolling portfolio includes HRM 2, a light and medium sections mill with an annual capacity of 240,000 mt, as well as HRM 1, which currently has a capacity of 400,000 mt and is undergoing an upgrade.
Further expansion underway with HRM 1 upgrade
AGSI is continuing its expansion strategy with the upgrade of HRM 1, which is expected to be commissioned in the second quarter of 2026. Following the upgrade, HRM 1’s capacity will increase from 400,000 mt per year to 800,000 mt per year. As a result, AGSI’s total installed rolling capacity is projected to reach approximately 1.64 million mt per year.
This phased capacity increase demonstrates the company’s long-term strategy to scale production while maintaining its focus on sustainability.
Focus on domestic market with export flexibility
Production from HRM 3 will primarily be directed toward the UAE domestic market in order to ensure stable supply for local construction demand. At the same time, AGSI plans to allocate limited volumes to regional export markets depending on demand conditions.