Conares, the second largest private steel manufacturer in the region, has announced plans to increase its manufacturing capacity to one million tonnes at its facility in Jebel Ali Free Zone (Jafza).

The company will invest Dh200 million ($54.4 million) in the expansion, it was revealed as Conares celebrated the 25th anniversary of its operations.
    
The anniversary was celebrated at a special ceremony held in the presence of Sheikh Ahmed Bin Saeed Al Maktoum, president of the Department of Civil Aviation, CEO and chairman of Emirates Airline and Group, chairman of Dubai World and chairman of Dubai Airports.

T P Seetharam, Indian Ambassador to the UAE; Salma Hareb, CEO of Jafza and Economic Zones World; Ibrahim Mohamed Al Janahi, Deputy CEO of Jafza and chief commercial officer of Economic Zones World; other dignitaries and guests also graced the occasion.

The state-of-the-art steel plants of Conares, spread in an area of over 1.5 million sq ft in Jafza, currently manufactures steel pipes and rebars. The company has a 20 per cent share of the the UAE rebars market and its pipes cater to 25 per cent of the total market demand in the region, Conares said.

Its global and regional presence gives it a competitive advantage in sourcing raw materials, the cmpany said.

Bharat Bhatia, founder and CEO of Conares, said: “It’s a great honour and pride for us to have all these dignitaries joining the 25th anniversary celebrations of Conares. Our growth has remained on a buoyant trajectory over the years and this achievement has come with the continuous support and patronage of regulators and partners. I take this opportunity to express my appreciation to the visionary rulers of this great country for all that we have achieved.

“Over the last 25 years of our operations, we have crossed significant growth milestones in the steel industry. Conares has been able to achieve such exponential growth because of the trust it has built among its stakeholders in the region and beyond. Our abilities to identify and respond to the challenges and needs of the industry are far more sharpened as we achieve this 25th anniversary milestone,” he added.

Al Janahi said: “I congratulate Conares on completing their 25 years. The company has grown hugely in the last 25 years carving a name for themselves as a market leader in the manufacturing of pipes. It is today considered one of the largest steel manufacturers in the region. Conares’ remarkable success can be attributed to prudent marketing strategies they followed over the years. We are fully committed to providing all support needed to enable them to continuously achieve even better growth in the coming years.

"Conares has announced the expansion of its facility and operations to meet the upcoming demands generated by Expo 2020,” he said.

“The construction sector including iron and steel is one of the most important business segments in Jafza. The total trade generated by the sector crossed $5.6 billion in 2013. The rapidly growing demand for construction materials, including iron and steel, opens huge opportunities for Conares not only in the UAE but the entire region that Jafza as a hub serves.
Around $3.45 trillion worth of projects are in the design, bid or construction stage until 2025 in the GCC and the Middle East region. The World Expo 2020 in Dubai and Fifa World Cup in Qatar have provided further boost to infrastructure spending in the region, said Al Janahi.

"Of the $1.8 trillion worth of real estate projects under construction in the GCC up to 2025, the UAE tops the list with projects worth $940.55 billion in the design, bid or construction stage. Saudi Arabia is second on the list with $461.21 billion worth of projects. We would like Conares to capitalise on these emerging opportunities,” he added.

“I am delighted to announce that we are on track to complete an $100 million expansion of Conares manufacturing capacity for steel pipes in Jafza. The expansion is aimed at serving the domestic market as well as exploring export opportunities. The new line is expected to be commissioned by the fourth quarter of the current year. This would help us meet the demand for infrastructure developmental activities ongoing in Dubai to prepare for hosting Expo 2020,” Bhatia further said.

The annual turnover of Conares has touched Dh1 billion ($272 million) and as part of Conares Vision 2020, the company has earmarked Dh200 million investments in the next five years in diversified manufacturing facilities. This investment includes the ongoing Dh100 million capacity expansion. At this stage, all our investments will be made in Jebel Ali Free Zone. The support we have from the Jafza authorities is incredible, he said.

“We also aim to join our hands as partners in India’s growth story. Leveraging the signs of economic boom, we are eying opportunities for steel export to India catering to the new smart city and industrial cluster projects in difference parts of the country,” he said.   - TradeArabia News Service