PROJECTS

Emirates Steel has committed to a capital investment of approximately AED 9 billion (US$ 2.45 billion) in its Phase 1 and Phase 2 expansion programs. Phase 1 transformed the Company from a simple steel re-roller to the first fully-integrated steel manufacturer in the UAE and significantly increased the Company`s rolling capacity to around 2 million MTPA. Phase 2 involves the construction of a Heavy and Jumbo Sections Rolling Mill with a production capacity of 1 million MTPA, increasing the total rolling capacity to 3 million MTPA. The sections mill (RM4) is scheduled for commissioning in 2012.

In August 2010, the Company finalized its long-term financing. Together with GHC we secured in excess of US$ 2 billion to finance our expansion plans and our working capital needs from local, regional and international banks - reflecting a real vote of confidence in our business from the international capital markets.