Emirates Steel can meet UAE rail, Iraq needs

State-owned Emirates Steel Industries has the potential to supply material for the UAE's $8.2 billion rail project, even as it considers exports into Iraq, a company executive said on Monday.

The Gulf Arab producer which plans to complete constructing the 1,200 km (745 miles) rail system in 2015 and 2017, will be linked to a planned Gulf Arab network.

"With a few modifications section mills will be capable of producing rails which could supply the rail project," Ahmed Al Daheri, assistant vice president of projects at Emirates Steel told an industry conference.

Emirates Steel which produces about 1.8 million tonnes of steel annually and exports around 10 per cent of its output to countries including Saudi Arabia and Jordan is also considering expanding its reach into Iraq, Daheri said.

"We are looking at the option of exporting steel to Iraq, as we see a lot of potential for growth there," he told reporters on the sidelines of the conference.

Global steel demand has slumped by more than a tenth in the past year, but Emirates Steel has pushed on with expansion plans as it looks to displace steel imports into the UAE.