EMSTEEL Secure a Strategic AED 600M Partnership for Industrial Growth With Oldendorff Carriers

Executive Summary

EMSTEEL is the UAE’s largest listed steel and building materials manufacturing facility. It has recently signed a 5 year freight agreement worth AED 600 million with Oldendorff Carriers. This is a global leader in dry bulk shipping. This deal make sure the reliable import of approximately 5.2 million tons of iron ore pellets (IOP) annually. The deal is on long term 20 years operational relationship between two companies. It is designed to stabilize raw material costs and logistics, supporting EMSTEEL’s recent financial growth (AED 480.88 million net profit in 2025).

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Key Details of Agreement:

Feature	Description
Total Value of Contract	AED 600 Million
Duration of Contract	5 Years (Renewable)
Annual Volume	~5.20 Million Tons of Iron Ore Pellets (IOP)
Primary Partner	Oldendorff Carriers (Maritime Logistics)
Strategic Goal	Supply chain reliability and industrial growth

Key Highlights:

• Oldendorff will work as a bridge between suppliers of iron ore and EMSTEEL’s production facilities here in Abu Dhabi.
• The contract is documented for 20 years of collaboration. So it ensures that the complex delivery process remains smooth without delays.
• Oldendorff has modern "eco-type" fleet. It will align with EMSTEEL’s commitment to low carbon steel production and the UAE's Net Zero 2050 goals.
• The 5.2 million tons of annual imports will feed EMSTEEL's 16 plants, which currently hold a 60% share of the UAE’s domestic steel market.

Impact of the Deal:

• By locking in a long-term freight agreement, EMSTEEL reduces the risk of volatile global shipping rates. This follows a strong 2025 where the company saw a 23% increase in net profit, and driven by higher sales volumes (3.3 million tons of finished steel).
• This deal ensures a "steady and efficient flow" of raw materials, preventing production bottlenecks. This is critical for EMSTEEL’s role in supporting major regional infrastructure projects. It will also support the UAE’s "Operation 300bn" industrial strategy.
• This deal reinforces Abu Dhabi’s position as a global industrial hub. EMSTEEL has already contributed round about 10% to Abu Dhabi’s non oil manufacturing output. So this deal provides the raw material security needed to maintain and grow exponentially.

"The agreement ensures the steady and efficient flow of our raw materials, supporting our ability to produce the steel that underpins the region’s infrastructure, industrial development, and sustainable growth." Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, Said.