Steel firms in Jafza record over 20% growth in 2013

Steel industry in Jebel Ali Free Zone (Jafza) witnessed a robust growth of over 20 per cent in 2013, which is more than the rate of industry growth in the UAE, according to a statement issued by the free zone.

Steel manufacturers and traders in Jafza are expecting the growth momentum to pick-up further in the current fiscal, officials from top steel companies state in the release.

The upswing comes on the back of rapid economic development in the region and fast revival of real estate and infrastructure projects in Dubai and other parts of the UAE.

Ibrahim Mohamed Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World (EZW), parent company of Jafza, said:

“The remarkable growth is largely driven by robust recovery in the real estate industry and planned infrastructure projects in the UAE and other GCC countries. Expo 2020 is going to provide further boost to the construction sector in general and steel industry in particular, across the region. Jafza accounts for almost 40 per cent  of the steel produced in the country, therefore, the growth in the sector reflects the economic resurgence in the region.”

The UAE produced almost 3 million tonnes of steel in 2013. With such an impressive output the country plays quite an important role in the regional steel industry.

Jafza-based Conares Steel, the second largest steel manufacturer in the country, which produces 750,000 tons of different steel products, has reported a growth of 40 per cent in 2013. The company expects similar growth in 2014.

Bharat Bhatia, CEO, Conares, said: “We are planning to enhance our production capacity from 750,000 tons to 1 million ton by 2015 to meet our growth momentum. I feel Expo 2020 is going to provide major boost to steel industry in the UAE. With projects worth over $ 2.5 trillion planned in the GCC in the next ten years I see huge opportunities for the steel industry for a long time to come.”

Qatar Steel Company FZE in Jafza has reported more than 300 per cent growth in the last five years. In 2013 the company’s total production crossed 500,000 tonnes.

Faisal Abdulla Al Saei, Chief Operating Officer, Qatar Steel Company FZE, said: “Our growth is largely driven by growing demand for rebars and wire-rod products in the UAE, Saudi Arabia, Qatar and Oman. We are also exporting our products to India, Singapore and the USA. We expect more than 20 per cent year on year growth in the next few years. Fifa World Cup and Expo 2020 will certainly drive growth in the region in the coming years.”

Duke International, a player in structural steel, expects to maintain a yearly growth of 20 per cent for the next couple of years. The company has sold more than 80,000 MT of structural steel in 2013.

Vimal Sahityani, Managing Director, Duke International, said: “Massive expenditure planned on the infrastructure development will continue to drive demand for steel products in the region. The oil and gas sector alone is expected to spend more than $1.6 trillion in the next 25 years. This provides huge growth opportunities to steel and building material industry in the region.”

 

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