The deal is valued at US$ 2bn for 5 years
Emirates Steel Arkan (ESA), one of the largest publicly traded steel and building materials manufacturers in the region, recently signed a 5-year iron ore pellets supply contract with global leader in high-grade iron-ore pellets (IOP) Bahrain Steel Company (BSC).
The contract, valued for around US$ 2bn, was formalized at the Industrial Partnership for Sustainable Economic Growth initiative, held recently in Bahrain.
Rooted in a 16 times growth since 2009, Emirates Steel Arkan partnership with Bahrain Steel Company extends with this new contract, aiming for even greater heights in sourcing IOP.
Iron ore pellets
Under this agreement, Bahrain Steel will supply high-grade iron ore oxide pellets annually to Emirates Steel Arkan. This partnership is poised to significantly impact the iron and steel industry within the region, fostering sustainable economic growth and exemplifying the potential of cross-border collaborations.
“This initiative is in line with the UAE’s vision of bolstering partnerships and enhancing multilateral cooperation, as well as the goals of the Integrated Industrial Partnership for Sustainable Economic Development which was launched in 2022 to achieve integration in resources, capabilities and experiences owned by the partnership countries,” affirmed Eng. Saeed Ghumran Al Remeithi, Group CEO, Emirates Steel Arkan.
“The 5-year contract underscores our commitment to delivering high-quality iron ore oxide pellets to meet the evolving needs of Emirates Steel Arkan,” remarked Dilip George, Group CEO, Bahrain Steel.
Collaborative initiative
The signing ceremony, which is part of the collaborative initiative comprising the United Arab Emirates, Egypt, Jordan, and Bahrain, marked a key milestone in fostering economic ties within the region.
It also solidifies a strategic alliance between Emirates Steel Arkan and Bahrain Steel, further enhancing both companies’ growth prospects over the next five years, a press communique concluded.
