Dubai Multi Commodities Centre Authority (DMCCA) said Macsteel International will begin operations from AG Tower as a DMCC-registered company, following awarding of its licence in October.

A subsidiary of global steel trading, distribution and shipping giant Macsteel Holdings Group, the company will use the DMCCA’s Jumeirah Lakes Towers (JLT) free zone in Dubai as its Middle East base to further develop and establish new regional business opportunities, said a DMCCA statement.

Macsteel International is a 50:50 joint venture between Macsteel Holdings and Arcelor Mittal South Africa.

Macsteel International has a strong worldwide infrastructure with offices in major centers in Europe, North America, South America, Asia, Middle East and Africa for marketing and distribution of its products.

With a turnover of over $10 billion and more than 140 offices and sites globally, Macsteel Holdings Group is amongst the largest steel trading distribution and shipping (through its affiliate MUR Shipping) companies worldwide.

“The steel industry in the Middle East has witnessed significant growth in recent years, and approximately 50 million tonnes of steel is now traded and consumed in the region annually,” said Ahmed bin Sulayem, executive chairman, DMCC.

'Driven by the region’s infrastructure projects, the GCC’s annual per capita steel consumption is, at 380 kg among the highest in the world. Dubai alone annually consumes in excess of 500 kg of steel per capita, against the global average of 182 kg,'  bin Sulayem noted.

'Dubai imports nearly 6 million tones of steel per annum and stands at the crossroads of the world’s two dominant long product steel trade flows. Given such abundant business opportunities and excellent infrastructure, DMCC’s free-zone facilities offer an extremely attractive value proposition for steel and base metal companies to establish their regional headquarters here,' he added.

'We are confident that companies such as Macsteel Holdings Group aiming to tap into region’s strong business potential, will find Dubai and DMCC’s established and well regulated environment conducive for growth and expansion,' bin Sulayem said.

Last year, DMCC established the DMCC Steel Club, a dedicated networking association to support the UAE steel industry by identifying business opportunities and facilitating the development of global best practices.-TradeArabia News Service