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News Release

JFE Steel Corporation
Marubeni-Itochu Steel Inc.
Senaat GHC

JFE Steel, Marubeni-Itochu Steel and Senaat
to Launch Large-diameter Welded Steel Pipe JV in UAE

Tokyo --- JFE Steel Corporation, Marubeni-Itochu Steel Inc. (MISI) and Senaat GHC, a private joint-stock general holding company owned by the government of the Emirate of Abu Dhabi, announced today that they have agreed to establish a joint-venture company in Abu Dhabi, called Al Gharbia Pipe Company, to manufacture and sell large-diameter welded steel pipes, mainly for the energy industry.

Senaat, an investment company wholly owned by the government of the Abu Dhabi emirate, is one of the largest industrial conglomerates in the United Arab Emirates (UAE). In Arabic, Senaat is a word for “industries” and Al Gharbia means “western region.”

The new company, leveraging JFE Steel’s technology for high-quality large-diameter welded steel pipes, MISI’s sales capabilities and Senaat’s industrial footprint in Abu Dhabi, will manufacture and sell high-grade large-diameter steel pipes to energy companies in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, the six member countries of the Gulf Cooperation Council (GCC).

The UAE and other GCC member countries are highly competitive in terms of drilling costs and the sizes of their oil and gas reserves. With the development and production of oil and gas forecast to be robust in these countries, the demand for high-quality steel pipes for pipelines to transport these resources is expected to remain stable.

JFE Steel will participate in the joint venture under the Abu Dhabi-Japan Business Promotion Initiative of the Japan Cooperation Center for the Middle East. The initiative supports Japanese companies that invest in projects to strengthen ties between the two countries.

Al Gharbia Pipe Company
Location:   Khalifa Industrial Zone of Abu Dhabi (KIZAD)
Establishment:   April 2015
Total investment:   Approximately USD 300 million
JFE Steel 27%
MISI 22%
Products:   Large-diameter steel pipes to transport oil and gas
Capacity:   Approximately 240,000 tons/year
Employees:   Approximately 370 (planned)
Production start:   October 2018 (planned)

Location of Al Gharbia Pipe Company

Location of Al Gharbia Pipe Company

Location of Al Gharbia Pipe Company

Location:   Abu Dhabi
Established:   1973 (predecessor General Holding Corporation)
Chief Executive Officer:   Suhail Mubarak Bin Athaeeth Al Ameri
Businesses:   The company owns Emirates Steel and NPCC, a solution provider for oil and gas companies, as well as a building material provider and a food and beverage company.
Total Assets:   26 billion dirhams (approximately 858 billion yen)
Revenue:   12 billion dirhams (approximately 396 billion yen)

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