Japan's Nippon Steel takes 20% stake in UAE firm

Al Ghurair Iron & Steel (AGIS), a subsidiary of the UAE-based Al Ghurair Group, has entered into a strategic alliance with Nippon Steel Corporation (NSC), one of the biggest steel makers in the world. Under the agreement, Nippon Steel has invested in AGIS through a share transfer by which it will take 20 percent of voting rights, a statement said. AGIS, the first steel cold rolling and galvanizing complex in the UAE, is located in the Industrial City of Abu Dhabi and started commercial production in 2009. "NSC's technical strengths and resources will be of great benefit particularly during our upcoming expansion programme to double our galvanizing capacity" said Abu Bucker Husain, CEO, AGIS. "The combination of the companies' global and local strengths will ensure a consistent supply of high quality raw material for our operations," he added. "We are pleased to combine our strengths to meet the growing demands of the marketplace." Since the first year of commercial production, AGIS said it has expanded its customer network in the market of flat steel products applied to construction in the Middle East, North Africa (MENA) and West Asia. The Al Ghurair Group, through its investment company SAG Investments & Trading retains 80 percent shares in AGIS. The company said there will be no change in the day-to-day management of the company with Abu Bucker Husain continuing as CEO.