HSF advises JFE Steel and MISI

Herbert Smith Freehills has advised JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI) on their agreement with Senaat GHC, a private joint-stock general holding company owned by the government of the Emirate of Abu Dhabi, to establish a joint venture in Abu Dhabi.

JFE Steel, MISI and Senaat have agreed to establish a joint-venture company in Abu Dhabi, called Al Gharbia Pipe Company, to manufacture and sell steel pipes, for sale and distribution to the energy industry within UAE and other member countries of the Gulf Cooperation Council.

The project will be located in Abu Dhabi's Khalifa Industrial Zone, the designated industrial zone located adjacent to Abu Dhabi's flagship Khalifa port, and is expected to be up and running by 2018.

The joint venture will benefit from JFE Steel's technical know-how for the high quality welded pipes, MISI's sales networks across the globe and Senaat's significant presence in the UAE with its mandate to build UAE industry. Total investment in the joint venture is expected to be approximately US$300 million.

The Herbert Smith Freehills team on the deal was led by UAE partner Paul Scarr, who was supported by senior associates Shazi Askarpour in the UAE, and partner Graeme Preston and senior associate George Blades in Tokyo.

Paul Scarr commented, "This project is an excellent example of the strengthening of the ties between Japan and the UAE. Development of the industrial base is one of the cornerstones of the Abu Dhabi Economic Vision 2030 and this project presents an important step towards implementing this vision."