Emirates Steel, leading integrated steel plant in the UAE, has signed a four-year contract with Vale, one of the largest producers of iron ore and iron ore pellets, to supply iron ore pellets for its steel production in Abu Dhabi
The new agreement is a continuation of Emirates Steel and Vale?s long-standing business relationship that commenced in 2007. Through this contract, Emirates Steel has an iron ore pellet requirement of around six million tonnes per year.
The agreement was signed by Saeed Ghumran Al Remeithi, CEO of Emirates Steel, and Peter Poppinga, executive director of Vale, during an official meeting held at the Emirates Steel office in the presence of senior officials from both companies.
?The agreement with Vale comes in line with Emirates Steel strategy, which aims to secure flexible source of iron ore at competitive, stable and long-term prices. This new partnership plays a vital role to further strengthening the growth of our steel production in Abu Dhabi, as well as realising our vision of being a world class steel manufacturer providing the highest quality products, services and solutions to our customers and maximizing returns to our shareholders,? said Al Remeithi.
This long-term supply contract aims to provide Emirates Steel more flexibility to better serve its customers, achieve the business targets and continue the focus on operational excellence, he added.
Commenting on the agreement, Poppinga further noted that with this agreement Vale aims to support the Middle East steel making industry through leveraging on competitiveness, productivity and performance with quality products.