Abu Dhabi: Al Ghurair Iron and Steel would be doubling the capacity of steel production from the present 200,000 tonnes per annum to 400,000 tonnes as it seeks to increase its market share.
The company presently sells its steel products mainly used in the construction industry in the UAE and other Gulf Cooperation Council (GCC) countries with the UAE and GCC representing about 80 per cent of their market share.
The company also exports to North African countries like Egypt and Tunisia and some small quantities to the US.
Speaking to Gulf News, Abu Bucker Husain, Chief Executive Officer of the company said they see a good demand for their material despite the low oil price environment and economies slowing down in the region.
“The domestic market is strong with construction taking place and more projects coming up. We continue to see demand for our material and our outlook is positive,” said Husain.
The region is investing billions of dollars in new projects in preparations for Expo 2020 in Dubai and the football world cup in Qatar in 2022.
“Even after the oil prices went down, the GCC countries are still importing steel. We are only replacing those imports with our material. We however expect oil prices to revive in the coming years and the market to pick up to increase the demand.”
Currently, the turnover of the company is Dh750 million and is expected to go up to Dh1.5 billion when the capacity is doubled at the end of this year or early next year. It imports its raw material from Japan, India and Saudi Arabia.
Al Ghurair Iron and Steel set up in 2008 is a joint venture between Al Ghurair Group and Japanese firm Nippon Steel and Sumitomo Metal Corporation. The company based in Musaffah, manufactures flat steel products like steel sheets, coils and slits used in the construction industry and has a workforce of more than 500 people.
The UAE based Al Ghurair group is into different sectors including manufacturing, real estate, shopping malls and investments. The Japanese based group Nippon Steel and Sumitomo Metal Corp has presence in more than 15 countries and employs over more than 84,000 people.