Abu Dhabi, United Arab Emirates, 29 May 2025: EMSTEEL (the Group), one of the largest publicly traded steel and building materials manufacturers in the region, has announced a major milestone in its decarbonization journey where it has signed a strategic partnership with Finnish company Magsort to produce decarbonized cement. The agreement follows the success the Group has had in implementing an industrial-scale pilot for decarbonized cement production at its Al Ain facility through utilizing 10,000 tons of materials that reduce carbon, which have been developed by incorporating steel-slag.
EMSTEEL Group’s pilot provides a unique use-case for complementary operations between its two main business lines: Steel and Cement. This is achieved by incorporating steel slag at scale as raw material for clinker and cement production, reinforcing the Group’s commitment towards driving sustainability in the sector. Due to its diverse product range, EMSTEEL in uniquely positioned to pioneer a viable and practical circular economy case study. This simultaneously underscores EMSTEEL’s strategic capability to expedite decarbonization efforts across diverse sectors and strengthens its standing as a regional sustainability leader setting new benchmarks for industrial innovation in developing low-carbon cement.
To address the growing local market demand for low-carbon cement, an integrated line will be built at the company's Al Ain plant. This line will process steel residue and refine materials sourced from EMSTEEL’s steel plant in Abu Dhabi. This significant initiative is a crucial step expected to directly contribute to reducing Scope 1 carbon dioxide emissions.
This initiative is a core component of EMSTEEL’s decarbonization strategy. The company aims to achieve a 40% reduction in absolute greenhouse gas (GHG) emissions in its Steel Business Unit and by 30% reduction in its Cement Business Unit by 2030, using 2019 as the baseline year. EMSTEEL remains firmly committed to reaching net-zero emissions by 2050.
Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, said: “This is a proud moment for EMSTEEL and a strong signal of what is possible when innovation meets ambition. By transforming steel slag into a valuable input for cement, we are not only cutting emissions but also proving the commercial value of industrial circularity. Our integrated model is unlocking real results, and this milestone is a testament to our commitment to accelerate our decarbonization journey and help deliver the UAE’s Net Zero vision.”
Hugo Losada, CEO of Emirates Cement, part of EMSTEEL Group, said: “This milestone represents an important step in our decarbonization journey. Proving the technical and commercial viability of this decarbonization effort is a promising sign that we will be able to achieve our objective of hitting the 2030 decarbonization targets by 2026. We look forward to continuing this very fruitful co-operation with Magsort over the years to come.”
Kalevi Kostiainen, CEO of Magsort, said: “We are extremely happy in achieving this key milestone in Abu Dhabi. The co-operation with Emirates Cement has been incredibly productive and this facility serves as a large-scale example for the industry on how to achieve significant CO₂ reduction with today’s technology and existing materials. It’s a clear win-win for the cement and steel industries. We would like to thank Emirates Cement for leading the way and taking action.”
About EMSTEEL
EMSTEEL is a public joint stock company (ADX: EMSTEEL) and the UAE’s largest steel and building materials manufacturer. The Group leverages cutting-edge technologies to supply both the local market and over 70 international markets with high-quality finished products, creating a one-stop shop for the manufacturing and construction sectors.
EMSTEEL is committed to contributing to the UAE's industrial strategy ‘Operation 300 billion’ by delivering market-leading products to support local industries, creating job opportunities for UAE Nationals, and enhancing its sustainable practices. The Group is a global leader in low-carbon steel production and is aligned with the UAE's Net Zero by 2050 Strategic Initiative. Headquartered in Abu Dhabi, EMSTEEL operates 16 state-of-the-art plants, with a production capacity of 3.5 million tons of steel and 4.6 million tons of cement annually, fueling the nation’s most iconic projects.
EMSTEEL is majority owned by ADQ, an active sovereign investor with a focus on critical infrastructure and supply chains.
For more information, please visit: www.emsteel.com.
About Magsort
Magsort is a decarbonization company. Its revolutionary solution makes it possible to extract all the steel left behind in steel slag while refining the remaining slag into valuable zero-CO2 raw materials for the cement industry.
