Published by: Serife Durmus<>
12 Mar 2025 @ 19:53 UTC

Abu Dhabi-based EMSTEEL will explore strategic acquisitions to reinforce its European footprint, and strengthen collaborations with international regulators, Michael Rion, chief commercial officer of Emirates Steel, part of the Emsteel Group, told Fastmarkets in an interview this week.

EDMSTEEL is the largest steel and building materials company in the United Arab Emirates, and is the co-chair of the International Renewable Energy Agency (IRENA) Alliance for Industry Decarbonization, Rion said.
This allowed the company to shape the future of green steel by promoting global commitments to tripling renewable energy and cutting emissions by 54% by 2030, he added.
EMSTEEL will continue to focus on low-carbon steel production. It expected the construction boom in the country to drive demand for its products, it said in its full-year 2024 financial results report in February.
With the EU’s Carbon Border Adjustment Mechanism [CBAM] set to take effect in 2026, UAE steel producers must innovate and decarbonize to maintain market access, Rion said.
The Middle East-North Africa region (MENA) has the potential to become the global leader in the industry’s transition to green iron and steel, the Institute of Energy Economic and Financial Analysis (IEEFA) said in a report published on March 5.
EMSTEEL recently launched its Asset Enhancement Program, an independent initiative intended to expand production capacity and to introduce high-performance steel products that meet the region’s growing needs.
The program has a capital investment of 625 million dirhams ($170.15 million), and focuses on upgrading rolling mills and expanding the Emsteel product range.
Its first phase will enhance production capabilities to introduce high-strength rebars and advanced heavy-section products. The second phase will enable the production of value-added wire rod and high tensile rebar in coil, supported by Vacuum Degassing (VD) technology and enhanced billet production.
These investments position EMSTEEL to deliver specialized steel solutions tailored to the increasing demand across the construction, energy, petrochemical and automotive sectors, Rion said. The first rolling mill upgrade is set for commissioning in 2025, followed by additional enhancements through 2027.
Toward net-zero emissions EMSTEEL started production at its green hydrogen pilot project with renewable energy producer Masdar on October 28, 2024.
The 2.1MW project can produce 368 tonnes per year of green hydrogen, enabling 5,000 tpy of green steel production while reducing CO2 emissions by 3,680 tpy. This was equivalent to taking 800 cars off the road, according to the CCO.
Furthermore, EMSTEEL recently unveiled a decarbonization roadmap, with a goal to achieve a 40% reduction in absolute emissions of greenhouse gases (GHG) within its steel division, and a 30% reduction in its cement division by 2030. These targets use 2019 as the baseline year. The ultimate objective is to reach net-zero emissions by 2050.
This strategy underscores our commitment to sustainable manufacturing and aligns with key national and international climate targets, Rion said, including the UAE’s Net Zero by 2050 Strategic Initiative, the UAE’s Nationally Determined Contribution [NDC 3.0], and the Paris Agreement. EMSTEEL is actively supporting the UAE’s target of a 27% reduction in industrial emissions by 2035 [from 2019 levels] by driving industrial decarbonization.
To significantly reduce its carbon footprint, EMSTEEL is implementing key decarbonization strategies, which include: • Enhancing energy efficiency and process optimization • Using alternative fuels and raw materials in steel and cement production • Accelerating the transition to clean and renewable energy, with a goal to cover 100% of electricity demand with renewable sources by 2030.
Between 2019 and 2023, Emsteel cut total Scope 1 and Scope 2 emissions to 4.5 million tonnes of CO2 – a 23% reduction from the 2019 baseline.
Regulations in the UAE The UAE’s Ministry of Industry and Advanced Technology (MoIAT) announced regulations titled the Emirates Conformity Assessment Scheme (ECAS) in October 2024.
By requiring compliance with ECAS certification, Rion said, the regulation prevents the entry of substandard steel products into the market, protecting consumer safety and structural integrity.
It also helps to maintain fair competition by ensuring that all steel products, whether produced locally or imported, meet the same industry benchmarks, he said.
By aligning with international regulatory frameworks, the scheme reinforces the UAE’s position as a trusted hub for high-quality and responsibly sourced steel. Additionally, it supports the country’s broader sustainability agenda by promoting the use of eco-friendly materials in construction and infrastructure projects, he added.
EMSTEEL has capacity for 3.5 million tpy of crude steel. It produces rebar, wire rod, heavy sections and steel sheet piles.
Global decarbonization The global decarbonization push was encountering headwinds, with economic challenges slowing progress, Rion said.
High energy and carbon costs were straining the steel sector’s competitiveness in Europe, and consequently the industry is pushing back against the feasibility of ambitious climate targets, Rion said.
Some major steel manufacturers have already delayed green investments, citing financial pressures, he told Fastmarkets. There is growing concern that demand for green steel is not yet sufficient to offset the premium cost of production, despite the intention of the CBAM to create a level playing field.
European Steel Association Eurofer has warned that, without urgent policy support, Europe risks losing its manufacturing base, he added.
EU Commission president Ursula von der Leyen said in a meeting on March 4 that European steelmakers are at a crossroads, facing the challenges of necessary decarbonization and partly unfair global competition.
The entire shift to greener methods of production would require huge investment. According to Eurofer, the capital and operating costs of the green transition would be extreme… in the multi-billion-euro range, and that, per tonne of steel produced, costs could go up by between 35% and 100%.