Emirates Steel, a subsidiary of the General Holding Corporation (Senaat), today announced an outstanding set of financial results for the year 2017, with company’s revenues increasing 22 per cent to Dh6.6 billion ($1.80 billion).

 

The company posted a solid 12 per cent EBITDA margin, delivered in a challenging year for the global steel sector, it said.

 

During 2017, Emirates Steel’s production increased to more than 3.2 million tons, up from 3.1 million tons in 2016. Export sales to 40 countries accounted for 20 per cent of total volumes, with the remaining 80 per cent being consumed within the UAE.  

 

During an annual media briefing held today at Emirates Steel’s headquarters, Engineer Saeed Ghumran Al Remeithi, chief executive officer, said: “The positive results achieved by Emirates Steel in 2017 clearly indicate success of the company’s resilient business model, despite the challenges faced by the metals and steel industry globally.

 

“The increasing demand for Emirates Steel’s products in the international markets is testament to their high quality, which will open further doors for entering new emerging and developed markets. We will continue to increase sales revenues and reduce direct and indirect costs to further improve the company's financial performance. This will be achieved by increasing volumes, driving efficiencies and further developing our product range to achieve our production capacity of 3.5 million tons per year, raising safety standards and entering new markets to further expand our global footprint,” he added. 

 

“Having delivered year-on-year growth, the company continues to enhance its position as a world-class steel manufacturer, providing the highest quality products, services and solutions to our customers.”

 

Production performance 

Emirates Steel has recently developed a scrap shredding facility that supports increased efficiencies in the operation of the electric arc furnaces. This new facility will play a major role in recycling scrap metal available in the Emirates, as well as reducing operating costs and increasing flexibility for the primary feedstock used by the company.

 

In addition, the company has successfully designed and developed a twin-casting system, the first of its kind in the UAE, that will enable the company to further increase volumes. The success of this new technology was confirmed on commissioning in July 2017, as it had increased the production capacity of “Steel Casting 2” to 20 per cent. 

 

“Emirates Steel continues to focus on manufacturing high quality steel products to meet the needs of a growing construction market and the huge infrastructure projects ongoing in the UAE and the GCC. Our heavy structural steel sections are used in the construction of bridges, roads, giant residential towers, airports, ports and in the construction industry for industrial and engineering applications,” said Al Remeithi.

 

“We will rely heavily on the heavy sections mill when implementing our expansion strategy, further targeting new markets" he added. “The plant was commissioned in 2013 with production reaching 540,000 tons per annum in 2017.”

 

Al Remeithi added: “In addition, the company has continued to produce rebar and increase its production to 2.2 million ton per annum in 2017, compared to 2.1 million ton per annum in 2016.”

 

The company is currently diversifying its product strategy with the development of value-added products such as specialist steel wire rods as used in a diverse range of applications - from the automotive sector to the manufacture of furniture. The company's heavy sections team has successfully developed a range of highly technical sheet pile products, the “ES-Z” range as part of Emirates Steel’s development strategy. 

 

Sheikh Khalifa Excellence Award 

Last month, Emirates Steel won the Diamond Category of the prestigious Sheikh Khalifa Excellence Award, which was presented by Sheikh Hamed bin Zayed Al Nahyan.  

 

Al Remeithi said: “We’re proud to be the first company in the industrial sector to win this award, which reflects the company’s significant achievements towards developing the local industrial sector.”

 

He added: “Excellence is a continues journey. Winning this award is a motivation for Emirates Steel to deliver more outstanding services to our customers and further strengthen the company’s position in the UAE and the region.” 

 

Efficiencies

The company has implemented various cost control measures and this, married with the enhanced efficiencies and availability of the plants, has reduced the manufacturing costs per ton of steel (excluding feedstock) by 37 per cent in the period from 2012 to 2017. Similarly, the overhead costs per ton of steel has been reduced by 25 per cent in this period. An independent benchmarking exercise conducted by Wood Mackenzie having positioned Emirates Steel as a top quartile player in terms of the world’s most efficient producers, the company said.

 

Emiratization

21 per cent of Emirates Steel workforce is representative by UAE nationals, with 75 per cent of UAE nationals leading the executive management. The company plans to increase its overall Emiratisation ratio to 34 per cent by 2020, providing UAE nationals with an opportunity to contribute to its growth and to the Economic Vision of the nation. 

 

Currently, Emirates Steel employs 2,228 personnel across all divisions and facilities, with 467 of the them being UAE nationals, including 76 engineers, 307 technicians and 84 managers.

 

Corporate Social Responsibility

In line with its CSR commitment, Emirates Steel has implemented a number of initiatives to engage with the community and add value to the society. 

 

'We Give You Smile', an initiative designed to help improve the quality of life for needy people, has been running for two years, benefiting 60 families in 2016 which increased to a total of 140 in 2017. In line with the spirit of unity, the company engaged its staff to distribute packed boxes of essential food items to families across the country.

 

In cooperation with the UAE Red Crescent, Emirates Steel actively contributes to campaigns that aim to support orphans and refugees. 

 

This year, the company is also supporting the “Year of Zayed” initiative as led by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. 

 

Al Remeithi commented: “Emirates Steel is continuously seeking opportunities to join hands with governmental and non-governmental institutions for cooperation towards further contributing to UAE’s socio-economic and community development.” – TradeArabia News Service