Abu Dhabi: Emirates Steel, the largest integrated steel plant in the UAE, yesterday announced its plans for further growth, which include potential Greenfield investment opportunities and acquisitions.
The announcement was made at the CityBuild Abu Dhabi 2010 Exhibition at the Abu Dhabi National Exhibition Centre (Adnec). The event started Sunday and ends on Wednesday.
Gregor Muenstermann, chief executive officer of Emirates Steel, said: "We believe that demand for steel will continue to grow in our region by some 10 per cent this year compared to 2009, as higher oil prices fuel optimism and provide funds for transport infrastructure and housing projects."
A 10 per cent growth rate would put the Middle East region as one of the most attractive areas for investment in the steel industry especially that imports constitute nearly half of the steel consumed in the region — estimated at more than 40 million metric tons in 2009.
Design capacities
"This means that there is still room for further expansion and new design capacities to fulfill local demand," he highlighted.
To date, Emirates Steel has committed to a capital investment of Dh9 billion ($2.45 billion) in its Phase I and Phase II expansion projects. Phase I transformed the company from a simple steel processor to the first fully-integrated steel manufacturer in the UAE.
Phase II involves the construction of a heavy and jumbo sections rolling mill with a production capacity of one million tonnes per annum. The mill is scheduled for commissioning in early 2012. Based on its positive outlook for the future of the industry, Emirates Steel is looking at new markets within the region.
"We are particularly upbeat about the industry's prospects in Saudi Arabia, especially with the ongoing construction boom and the massive expansion of the railway network throughout the kingdom," he concluded.
