Abu Dhabi-based steelmaker Emirates Steel Arkan (ESA) has reportedly ended active talks with thyssenkrupp to buy a stake in the German conglomerate's steel division.
Due to pension obligations and other business complexities, ESA pulled out from the share acquisition.
ESA has sought to build a strategic partnership with thyssenkrupp. In April, ESA Chief Executive Saeed Al Remeiti confirmed that negotiations are ongoing as part of ESA's ambitious growth strategy to capture new opportunities in sustainable, low-emission steel products in the coming years.
Prior to this, it was reported that ESA could make a formal bid to acquire thyssenkrupp's steel division within a few months to supply renewable energy-derived raw materials for automotive steel processing in Germany.
State-backed bar producer ESA is the only fully integrated plant in the United Arab Emirates with a production capacity of 3.5 million tons per year. The company supplies 60% of rebar to the domestic market and exports profiles, rebar and wire rod to 70 countries around the world. ESA has three modules for the production of direct reduced iron with a total production capacity of 4 million tons/year.
The company is evaluating its planned investment in the production of flat products, and the final decision is expected in 2023. In May, it was reported that Turkish company Tosyalı and ESA were in talks to invest in a joint venture to produce flat products in Abu Dhabi.
