Emirates Steel Arkan (ESA), a major steel and building materials producer in the United Arab Emirates, has signed a significant agreement with Bahrain Steel Company (BSC) to secure a steady supply of iron ore for the next five years. The contract, valued at approximately $2 billion, was finalized during a recent meeting of the Industrial Partnership for Sustainable Economic Growth initiative held in Bahrain.
This strategic partnership strengthens a well-established relationship between the two companies. Since 2009, their collaboration has grown significantly, with a 16-fold increase in business volume. The new deal signifies ESA’s commitment to sourcing high-quality iron ore pellets, a key raw material for steel production.
Under the terms of the agreement, BSC will supply ESA with consistent deliveries of high-grade iron ore oxide pellets annually. This guaranteed supply chain is crucial for ESA’s continued operations and future growth plans. It also allows the company to focus on its core competencies in steel manufacturing and product development.
Industry leaders anticipate this partnership to have a positive impact on the regional iron and steel sector. The collaboration between these two prominent steel producers is expected to contribute to the industry’s overall growth and stability. It also serves as an example of the potential benefits of cross-border collaboration within the Middle East.
Eng. Saeed Ghumran Al Rumaithi, CEO of Emirates Steel Arkan Group, expressed his optimism about the agreement’s potential. He emphasized the importance of the partnership in “promoting integrated industrial growth, ensuring a stable supply chain and enhancing our capabilities to manufacture high-quality steel products.”
Al Rumaithi further highlighted how this deal aligns with the UAE’s vision to strengthen regional partnerships and economic cooperation. It also supports the goals of the Industrial Partnership for Sustainable Economic Growth, a collaborative initiative established in 2022 to leverage the combined resources and expertise of participating countries.
Dilip George, CEO of Bahrain Steel Group, echoed Al Rumaithi’s enthusiasm. He stated that the strategic cooperation reflects a “strong shared vision for cooperation and growth” for both companies. George emphasized BSC’s commitment to supplying high-quality iron ore pellets to meet the growing needs of Emirates Steel Arkan.
The signing ceremony marked a significant milestone in fostering economic ties within the region encompassed by the Industrial Partnership for Sustainable Economic Growth, which includes the United Arab Emirates, Egypt, Jordan, and Bahrain. This long-term agreement between Emirates Steel Arkan and Bahrain Steel Company is a promising development for the future of the iron and steel industry in the Middle East.
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