Emirates Steel production volumes up 33pc
Abu Dhabi, November 11, 2012
Abu Dhabi-based Emirates Steel, the only integrated steel plant in the UAE, said its steel production volumes grew 33 per cent during the third quarter when compared to the same period last year.
Emirates Steel, which is owned by Senaat General Holding Company (GHC), is strategically located in the industrial city of Abu Dhabi (ICAD), some 35 km away from the heart of the UAE capital.
The company has increased its dispatch of prime quality finished goods by 10 per cent compared with the levels achieved in the same period of 2011.
Announcing solid growth, Suhail M Al Ameri, the Emirates Steel’s chairman and CEO of Senaat GHC, said, "Despite the challenging conditions faced in both our domestic and regional markets, the company has delivered a strong performance in the first three quarters, delivering volumes which were underpinned by the excellent performance of our Phase 1 assets and the continuing ramp-up of our Phase 2 steel manufacturing plants."
He pointed out that the expansion plans were in line with the government’s long-term initiatives to develop and diversify the emirate’s economy.
"The plants we have commissioned are delivering operational results ahead of expectations, supporting our contribution to the broadening of the Emirate’s GDP and creating high quality job opportunities for UAE Nationals," he added.
CEO Saeed G Al Romaithi said 95 of Emirates Steel’s finished products were produced from its own manufactured steel, against 83 per cent to the end of the third quarter in 2011.
“The increased volumes of own manufactured steel has enabled us to remain competitive in the context of the threat of low cost imported materials,” he added.
According to figures released yesterday, rebar production increased by 10 per cent in the nine months compared to the same period in 2011, and the output of wire rod increased by 4 per cent. Steel production increased by 33 per cent, and the production of direct reduced iron (DRI) went up by 20 per cent.
“These figures reflect significant increases in our production and sales volumes,” said Al Romaithi.
“The construction sector is the primary consumer of our rebar and wire rod products. Our objective is to be one of the leading regional companies in steel making,” he pointed out.
According to him, the company sells around 70 per cent of its finished products in local markets, while the balance is exported.
He believes that construction projects in the GCC region will be the key driver supporting the steel industry’s growth in near term, followed by oil and gas, petrochemicals and other infrastructure projects.
“Although some stability is returning to the GCC’s construction sector, we believe that infrastructure projects will accelerate the region’s recovery over the next few years,” he observed.
Emirates Steel’s increase in its domestic market share to 60 per cent has been achieved through targeted efforts to support key customers and by pursuing sales policies that assist in bringing stability to the market, said Al Romaithi.
"As well as focusing on the domestic market, the company has made sustained efforts to increase its exports to the regional markets, achieving a year on year increase of 30 per cent in export volumes, its most significant export markets being the GCC states," he stated.
The first nine months have been an exciting period, with the company progressing the hot commissioning of the first heavy sections mill in the region, he added.-TradeArabia News Service