Abu Dhabi: Emirates Steel posted Dh7.5 billion in revenue in 2018, an increase of 15 per cent compared to Dh6.6 billion in 2017, the company said on Tuesday.

“Despite the challenges faced by the metals and steel industry globally last year, our results for 2018 were positive,” said Saeed Ghumran Al Remeithi, Chief Executive Officer of Emirates Steel in a statement.

“With this year on year growth, we are continuing to enhance our position as a world class steel manufacturer adept at delivering the highest quality products, services and comprehensive solutions to our customers.”

Emirates Steel, a subsidiary of the General Holding Corporation (Sennat) produced 3.1 million tonnes of finished products in 2018, in line with the volumes achieved in 2017. It sold 2.514 million tonnes of finished products in the domestic market, with exports accounting for the remaining 631,000 tons.

The company exported to more than 40 countries in 2018 and export sales accounted for 20 per cent of total volumes, with the remaining 80 per cent being consumed within the UAE where the company maintains a 60 per cent share of the rebar market and 69 per cent share of the section market.

Dh7.5b

income posted in 2018 against Dh6.6b in 2017

“While we foresee challenges in 2019, including the slowdown of the regional construction sector, surge in iron ore prices, drop in sales prices, market volatility, market protectionism, we remain focused on increasing sales revenues and reducing direct and indirect costs to further improve our financial performance,” he said.

“We are aiming to achieve this through the further development of our product range and by driving efficiencies across the business, focus on customer retention, and customer satisfaction. The success of our strategy and our ability to deliver the highest quality products is increasingly evident through the growing demand for Emirates Steel’s products in international markets,” added Al Remeithi.

In November of 2018, Emirates Steel signed a four-year (2018-2021), high value contract with Vale, the world’s largest producer of iron ore and iron ore pellets, to supply iron ore pellets for its steel production. The company has an iron ore pellet requirement of around 6 million tons per year, and the four-year contract and strategic partnership with Vale provides the company with a flexible source of iron ore at competitive, stable and long-term prices.