Business | Markets
Danube plans Dh40m Bahrain steel market investment
The GCC steel trade is expected to cross $200 billion (Dh734 billion) in 2010, according to latest studies, with the demand for steel increasing due to the construction boom and numerous project launches taking place in the region.
- Staff Report
- Published: 00:00 November 1, 2008
Dubai: The GCC steel trade is expected to cross $200 billion (Dh734 billion) in 2010, according to latest studies, with the demand for steel increasing due to the construction boom and numerous project launches taking place in the region.
In line with this, Danube Building Materials FZCO, a leading player in the construction, interior decoration and shop fitting industry, has announced plans to invest Dh40 million in the fast-growing steel market in Bahrain.
Company officials said the investment is part of Danube's plans to target the thriving construction market in Bahrain. The company had expanded its operations to the kingdom in 2007.
The recent Middle East Steel 2008 Report from MEED said projects worth $2 trillion are planned or under way in the Gulf, with less than one quarter already awarded.
This will fuel growth of regional steel trade, which is expected to touch over $50 billion from projects currently under way and an additional $150 billion from new schemes in the pipeline.
Amid the Middle East steel industry's rapid expansion, Danube is focused on making significant strides to meet the needs of the fast-expanding construction sector, as industry experts forecast the growth in steel production in the Middle East to reach 35 million tonnes and consumption over 41 million tonnes of finished goods by 2010.
"The rapid movement of raw steel and steel-derived products in the region has been largely influenced by the construction of massive real estate projects within its largest and fast-growing states," said Rizwan Sajan, the chairman of Danube Building Materials.
"Having embarked on this ambitious expansion strategy, we are currently eyeing over Dh120 million in annual revenues from our steel operations in the kingdom. We are also looking at potential regional destinations where we can position our facilities in line with our aim of keeping up the growth momentum for the Danube brand," said Sajan.
In addition to its Bahrain-based expansion, Danube has recently announced its plans to invest Dh50 million in a new steel facility in Oman and Dh200 million in the steel industry in UAE in 2008.
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