Major UAE steel company sees double digit growth
UAE-based Conares, a leading provider of downstream steel products in the region, has recorded a double digit growth in the first quarter of 2014 in line with the growing construction industry in the emirates.
Conares has an annual production capacity of over 750,000 metric tons, including 500,000 metric tons of rebar, and 250,000 metric tons of ERW pipe and 36,000 metric tons of galvanised pipes.
Having supplied into the market close to 100,000 metric ton of rebar in the first quarter, Conares has recorded an 80 per cent utilisation of its capacity. The first quarter volume is almost equivalent to 50 per cent of the last year’s total tonnage, said the company in a statement.
Total sales of Conares steel products has surged by 25 per cent as of 2013 end. The profit of the business also registered significant growth of 45 per cent in 2013, compared to the same period in 2012.
Conares said it was focused on the maximisation of its full capacity at its rebar mill in order to meet the increasing demand for steel and rebar in the region. The high-demand and order bookings indicate a 100 per cent utilisation of its installed capacity in the second quarter of the current year, it added.
Commenting on the growth, CEO Bharat Bhatia said: "The steady rise in construction, with the announcement of major landmark projects in the UAE, has given way to a boom in the steel industry. With our guarantee on quality, which is at par with all the international standards, we are in the position to service the growing demand very well."
“The huge growth in the steel industry is a result of several factors, the primary reason being the new developments and announcements of new projects here. Further, the high-demand has also led most construction companies, developers and traders to turn to local producers, as imports of debars normally takes a minimum of 60 days to arrive in Dubai.
“Furthermore, UAE financial institutes are very positive to support the steel industry which itself is good sign for the entire industry and future developments. Local producers are able to offer internationally competitive costs. That, coupled with the reliability of delivery locally, which is far better and easier compared to imports from outside UAE, have added immensely to the growth of the sector in the region,” he added.
- Bayt.com: More than 70 per cent of Mideast professionals think that meetings are time well spent
- The Suez Project: a good start, but not a substitute for industrialization
- GCC eyes on fertilizers that combat nutrition deficiencies
- New reports tells us all there is to know about salary increases in the GCC
- Misrata: Libya's 'entrepreneurial phoenix'?