Emirates Steel announced that the increase in its steel production volume by 33% through to the end of Q3, 2012. Owned by Senaat GHC, the Company has increased its dispatch of prime quality finished goods by 10% compared with the levels achieved in the same period of 2011.
Mr Suhail M Al Ameri, Emirates Steel's chairman and CEO of Senaat GHC said that "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."
Mr Ameri said that "The expansion plans of Emirates Steel are 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."
Mr Saeed G Al Romaithi CEO of Emirates Steel said that 95% of the Company's finished products were produced from its own manufactured steel, against 83% to the end of Q3 in 2011.
He said that "The increased volumes of own manufactured steel has enabled us to remain competitive in the context of the threat of low cost imported materials."
According to figures released, rebar production increased by 10% in the 9 months compared to the same period in 2011, and the output of wire rod increased by 4%. Steel production increased by 33% and the production of direct reduced iron went up by 20%.
Mr Al Romaithi said that "These figures reflect significant increases in our production and sales volumes. 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."
The Company sells around 70% of its finished products in local markets, while the balance is exported.
He said 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.
He added that "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."
