Abu Dhabi’s steel and building materials manufacturer EMSTEEL has announced the launch of its Asset Enhancement Program, which has a capital expenditure of approximately AED625 million ($170.2 million). This strategic initiative is aimed at enhancing production capabilities and introducing advanced steel solutions to meet the increasing demands of the market.

The program is closely aligned with the UAE’s Operation 300bn initiative, which focuses on advancing innovation within the UAE’s industrial sector and reinforcing its role in boosting the national economy. By enhancing the development and production of high-quality, value-added solutions, EMSTEEL supports the UAE’s vision to emerge as a global leader in manufacturing and industrial excellence.

Phase 1 of the enhancement program will primarily involve upgrading EMSTEEL’s existing rolling mills to improve production capabilities. This phase will introduce a new generation of high-strength rebars and advanced heavy-section products, significantly expanding EMSTEEL’s product offerings to meet evolving market needs.

The key innovations during this phase include advanced shear systems, which will facilitate the production of high-strength rebars for sustainable construction. This includes EMSTEEL’s flagship ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to enhance structural integrity while minimizing material usage. The advanced tensile properties of the ES600 aim to contribute to the decarbonization of the construction industry by lowering steel consumption, reducing transportation emissions, and decreasing the overall carbon footprint.

Additionally, Phase 1 will enable EMSTEEL to deploy state-of-the-art rolling mill technology for the production of quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel. These technologies will ensure enhanced strength and resilience for demanding applications across high-rise buildings, large-scale infrastructure projects, and various assets in the energy sector.

QST technology enhances the toughness and wear resistance of steel through rapid cooling, which improves mechanical properties without compromising weldability. Meanwhile, TMCP optimizes the steel’s microstructure through controlled rolling and cooling, resulting in high strength, excellent weldability, and improved impact resistance, which are crucial for structures subjected to extreme loads and harsh environmental conditions.

Looking ahead, Phase 2 of the program will focus on installing a new wire rod outlet with a capacity of up to 500 KTPA and upgrading a cooling conveyor at existing rolling mills. These enhancements will facilitate the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. To support this expansion, EMSTEEL will upgrade its steel melt shop with advanced VD technology and improvements to billet casters, ensuring the production of high-carbon and special alloy billets necessary for the new product range.

These investments signify EMSTEEL’s strategic transition from producing standard, commodity-grade steel to specialized, high-value products that provide enhanced strength, durability, and efficiency for critical applications. This shift not only strengthens customer retention but also positions EMSTEEL to meet the growing regional demand for premium steel solutions.

Currently, the GCC market relies heavily on imports for VA-grade wire rod products, with demand projected to grow at a compound annual growth rate (CAGR) of 7-10 percent over the next decade. By addressing existing mill limitations and expanding its product offering, EMSTEEL is strategically positioning itself to enhance its competitive edge in key sectors such as infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components.

The enhancement project follows an ambitious timeline, with EMSTEEL’s first rolling mill upgrade scheduled for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027, further enhancing EMSTEEL’s capabilities. Upon completion, this initiative will significantly strengthen the company’s market position, expand its customer base, and drive additional EBITDA growth.

Eng. Saeed Ghumran Al Remeithi, group chief executive officer of EMSTEEL, emphasized the importance of continuous investment in advanced steel solutions to keep pace with evolving industry demands. He stated that without such investments, manufacturers risk falling behind in a competitive global landscape. He also underscored that EMSTEEL’s strategic transformation is designed to maintain its leadership in industry trends while providing state-of-the-art materials that meet the needs of modern construction, energy, and industrial projects.

EMSTEEL Group remains dedicated to delivering high-quality, sustainable solutions that meet the industrial and construction needs of the region. As the UAE’s leading publicly listed steel and building materials company, it continues to spearhead initiatives that drive regional growth and foster strategic collaborations to enhance the nation’s economy.