Abu Dhabi : Abu Dhabi-based conglomerate General Holding Corporation (GHC), plans to invest $10 billion (Dh36 billion) over the next few years towards business expansion, a top GHC official said here yesterday.
"This investment would include expansion of the existing companies currently owned by GHC and establishment of new joint ventures," Hussain Jasem Al Nowais, Vice Chairman of GHC and Chairman of the Executive Committee told Gulf News in an interview.
He said GHC's unit — Abu Dhabi Basic Industries Corporation (Adbic) plans to invest a combined $1.5 billion in new downstream businesses — steel pipes and aluminium rolling mill.
Potential partners
"We are in talks with potential international partners for the two ventures. The investments in steel pipe and aluminium rolling mill businesses will be finalised before the end of the year," said Al Nowais,
GHC is Abu Dhabi government's industrial investment arm and one of the UAE's largest industrial conglomerates. Emirates Steel and National Petroleum Construction Company are among the units of GHC.
GHC said yesterday its net profit increased 61 per cent to Dh1.13 billion in 2009 from Dh703 million in 2008. Its total assets increased 16 per cent on the year to Dh18.4 billion in 2009.
Al Nowais said Emirates Steel expects to secure a $1.5 billion project finance loan with a seven-year term by June this year to continue to finance its expansion.
"Emirates Steel is making profit. All other businesses of GHC are profitable. The bulk of Emirates Steel's 2 million ton a year output is being consumed locally. The rest is being exported, mainly to Jordan, Sudan and Iraq," he added.
Al Nowais said Emirates Steel is currently producing rebars and wire rods, but by the end of 2010, it will also produce sections.
In the second phase of expansion starting 2013, he said Emirates Steel would also be producing hot-rolled coils and plates.
The company is going to increase its output to three million tonnes a year by the fourth quarter of 2010 and targets to produce 6.5 million tonnes annually by 2013, Al Nowais added.
"GHC currently wants to focus on its steel, aluminium, chemicals and petroleum services business," Al Nowais said. GHC contributes more than 13 per cent to Abu Dhabi's non-hydrocarbon industrial gross domestic product, employing a workforce of over 17,000 UAE nationals and expatriates.
Commenting on GHC's financial results, Sheikh Hamed Bin Zayed Al Nahyan, Chairman of GHC said: "GHC is an integral part of Abu Dhabi's industrial landscape and has followed a clearly defined strategic approach to grow over the last five years, despite a challenging global economic environment."
