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25 April 2024

Dubai's steel maker Conares to expand facilities with Dh200 milllion investments

Sheikh Ahmed Bin Saeed Al Maktoum, President of the Department of Civil Aviation, CEO and Chairman of Emirates Airline and Group, Chairman of Dubai World and Chairman of Dubai Airports, and Bharat Bhatia to mark the company’s 25th anniversary (Supplied)

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By Staff

Dubai-based region’s second largest private steel manufacturer Conares will invest Dh200 million to increase its manufacturing capacity at its Jebel Ali Free Zone facility to one million tonnes.

The state-of-the-art steel plants of Conares, spread in an area of over 1.5 million sqft in Jafz, currently manufactures steel pipes and rebars.

The rebars represent about 20 per cent the UAE market share and the pipes cater to 25 per cent of the total market demand in the region.

Bharat Bhatia, Founder and CEO of Conares, said: “Our growth has remained on a buoyant trajectory over the years and this achievement has come with the continuous support and patronage of regulators and partners.

“Conares has been able to achieve such exponential growth because of the trust it has built among its stakeholders in the region and beyond. Our abilities to identify and respond to the challenges and needs of the industry are far more sharpened as we achieve this 25th anniversary milestone,” he added.

Ibrahim Al Janahi, Deputy CEO of Jafza and Chief Commercial officer of Economic Zones World, said Conares has announced the expansion of its facility and operations to meet the upcoming demands generated by Expo 2020.

“The construction sector including iron and steel is one of the most important business segments in Jafza. The total trade generated by the sector crossed $5.6 billion in 2013. The rapidly growing demand for the construction material including iron and steel opens huge opportunities for Conares not only in the UAE but the entire region that Jafza as a hub serves,” he added.

“Around $3.45 trillion worth of projects are in the design, bid or construction stage until 2025 in the GCC and the Middle East region. The World Expo 2020 in Dubai and Fifa World Cup in Qatar have provided further boost to infrastructure spending in the region. Of the $1.80 trillion worth of real estate projects under construction in the GCC up to 2025, the UAE tops the list with projects worth $940.55 billion in the design, bid or construction stage. Saudi Arabia is second on the list with $461.21 billion worth of projects. We would like Conares to capitalise on these emerging opportunities,” he said.

“We are on track to complete an Dh100 million expansion of Conares manufacturing capacity for steel pipes in Jafz. The expansion is aimed at serving the domestic market as well as exploring export opportunities. The new line is expected to be commissioned by the fourth quarter of the current year. This would help us meet the demand for infrastructure developmental activities ongoing in Dubai to prepare for hosting Expo 2020,” Bhatia said.

“The annual turnover of Conares has touched Dh1 billion; and as part of Conares Vision 2020, the company has earmarked Dh200 million investments in the next five years in diversified manufacturing facilities. This investment includes the ongoing Dh100 million capacity expansion. At this stage, all our investments will be made in Jebel Ali Free Zone. The support we have from the Jafza authorities is incredible.”

“We also aim to join our hands as partners in India’s growth story. Leveraging the signs of economic boom, we are eying opportunities for steel export to India catering to the new smart city and industrial cluster projects in difference parts of the country,” he elaborated.