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Search Latest Emirati Steel News
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Dubai- Emirates steel pipe: Steel unit
promoters may face legal action
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Four more creditor banks are considering taking up
legal proceedings against the promoters of the defunct Emirates Steel Pipe
Factory in the Jebel Ali Free Zone, confirmed a source closely associated with
the proceedings. The plant has been shut down since last November, based on a court order received by Mashreq bank, which was until now the sole bank to do so. It is estimated that the promoters owe over Dh30 million to the local market. The decision by the other banks involved with the factory to press charges follows the breakdown of talks held by all parties concerned with one of the shareholders in the venture - Kuwait based the International Investor (TII), the source added. "All banks involved had two set of meetings with TII officials in recent weeks. Nothing concrete emerged out of it," said a source. "TII wanted the creditor banks to write off up to 80-90 per cent of the monies owed by Emirates Steel Pipe Factory. But that was an impossible demand and was instantly rejected by the banks concerned." The source added: "We are still hopeful that TII will come out with more concrete proposals. In fact, we are awaiting some sort of development in the next few days." The promoters, who are no longer in the country, also owe nearly Dh1 million to the free zone authorities. Emirates Steel Pipe Factory has a paid up capital estimated at about $1.6 million. TII has a 50 per cent stake in the venture, acquired in 1998, while the two original promoters share the remaining. The creditor banks are HSBC, United Arab Bank, Mashreq bank, National Bank of Fujairah, Emirates Bank International and ABN Amro among others. If court proceedings are initiated, one of the options would be to have an auction to raise cash. With all operations having ceased since November, and most of its staff having left, it is a moot point whether the enterprise has any sort of commercial viability left, sources added. In fact, employees were unpaid since June 2001. |
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Demand for deformed bars down in Dubai
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Gulf Construction March 2002 The demand for deformed steel in Dubai, UAE, has declined in spite of the spurt in the number of new construction projects, it was reported. Consumption of steel bars has gone down from 90,000 tones per month in the last couple of years to around 70,000 tonnes, said a report. The trend is expected to reverse this year, said Srinivasan Kannan, general manager of UBM Group, the holding company of Utmost Building Materials. The market price of Turkish steel has crashed from Dh890-Dh900 ($242-245) per tone to Dh840 ($228), the report said. Kannan said the UAE market was split between GCC suppliers and those from Turkey in the ratio of 30:70. There are chances of a shake-up in market shares among GCC producers owing to the new plants established in Abu Dhabi and Kuwait, the report said. Turkey will, however, continue to be an active player as steel mills there are highly export-oriented. Among Turkish suppliers, the largest share is enjoyed by Izmir Demir Celik Sanayi (IDC), which offers steel to ASTM (American) and BS (British) specifications. |
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Creditor banks formulating revival plan
for emirates steel pipes
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Emirates Steel Pipe Industries Ltd in Jebel Ali Free Zone. Creditor banks are
formulating a revival plan for following its shut-down in November. The
International Investor (TII), a Kuwait-based investment bank, and major
shareholder in Emirates Steel Pipe, might also pump in additional capital .
Total outstanding of the company is believed to be in excess of Dh20 million.
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25 % discount on subscription of Steel
Business briefing
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MEsteel is pleased to offer a 25 percent discount,
to our members, for a 12 month subscription, to the Steel Business Briefing
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