EMSTEEL Strengthens Regional Collaboration Through UAE-Oman Raw Material Logistics Agreement

EMSTEEL, a major steel and building materials producer in the region, has entered into strategic partnerships to enhance raw material transport and rail connectivity between the UAE and Oman. These agreements aim to boost economic ties while supporting EMSTEEL's cement production needs. The collaboration aligns with the UAE’s Operation 300bn strategy and Oman’s Vision 2040.

The primary agreement involves Hafeet Rail Infrastructure LLC, which operates the first cross-border rail network linking Oman and the UAE. This partnership will focus on developing an efficient logistics solution for transporting limestone and red shale. The railway system promises to optimise supply chain operations by enhancing connectivity across key markets.

EMSTEEL will manage the Rail Transfer Facility in Al Ain, UAE, as the main user of these materials. This facility will feature advanced unloading stations, conveyor systems, and stockpile management to integrate limestone and red shale into cement production seamlessly. The agreement secures up to 4.2 million tonnes of raw materials annually from Oman to the UAE for an initial term of 15 years, with an option for a further 15 years.

For EMSTEEL, this partnership ensures a cost-effective supply chain that supports its growth in cement production. Hafeet Rail benefits by reinforcing its role as a key player in environmentally responsible industrial growth. The rail transport reduces carbon emissions, promotes cross-border trade, and aligns with national strategies of both countries.

EMSTEEL has also signed an agreement with Minerals Development Oman (MDO), Oman's leading mining entity. MDO will oversee sourcing quality industrial minerals to meet EMSTEEL's standards. This project highlights Oman's potential to utilise its mineral resources effectively for regional industrial development and economic growth.

Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, stated: "This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit. It reflects our commitment to sustainability and operational excellence while symbolising the growing economic collaboration between the UAE and Oman."

Commitment to Regional Collaboration

Eng. Mattar Al Badi, CEO of Minerals Development Oman, commented: "The cooperation we signed today with Emsteel as part of the Hafeet Rail Project demonstrates Minerals Development Oman’s commitment to strengthening strategic regional partnerships and unlocking new opportunities for the evolution of the mining and downstream industries in Oman and the UAE."

This initiative is expected to significantly reduce emissions by decreasing reliance on road transport, contributing to sustainability goals in both nations. By leveraging regional resources and infrastructure, this partnership aims to drive industrial growth while building a more sustainable future.

With inputs from WAM