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Emirates Steel Industries has signed a sales contract with Sweden's LKAB to source quality iron ore pellets
HE Hussein J Al Nowais, chairman of Emirates Steel, said the contract aimed to complement the company's efforts to enhance the value of its steel products by sourcing high-quality raw materials meeting international standards.
Pellets are a primary raw material for Emirates Steel to produce high-quality direct reduced iron.
Saeed Ghumran Al Romaithi, CEO of Emirates Steel, said, “The long-term strategic relationship positions the Swedish firm as one of Emirates Steel’s primary suppliers of iron ore pellets.
“The new supply highlights our confidence about the long-term prospects for the steel industry in the MENA region. The contract helps us secure the supply of our primary feed material.”
Lars-Eric Aaro, CEO of LKAB, commented, “Emirates Steel plays a significant role in the UAE's steel making industry and we are delighted to be able to support Emirates Steel's future development by guaranteeing a predictable supply of iron ore.”
In 2012, Emirates Steel, for the first time, began producing at a capacity of 3.8bn kg, following two expansions and the investment of US$2.72bn. Other planned projects in the future are expected to increase the company's output of finished products to more than six billion kg.