RAK Steel opens 'efficient' factory

The new Dh183 million RAK Steel factory at Al Ghail Industrial Park was yesterday officially opened by Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah.

The energy-efficient and environment-friendly rolling mill has a built-up area of 16,000 square metres.Sheikh Saud said the factory would improve the availability of construction materials in the UAE and assist the development of the country.
 
“The opening of RAK Steel marks the addition of yet another successful enterprise to the growing list of industries setting up in the emirate,” he added.
 
“The Government of Ras Al Khaimah is moving forward with its agenda of providing an atmosphere which enables investors to tap the competitive advantages available in the emirate across various sectors.”

The Gulf has one of the highest per capita consumption levels of steel products in the world – at about 440 kilograms it is far higher than the world average of 182kg.

“RAK Steel has put in place a sophisticated quality control laboratory and advanced systems to ensure that all its products meet highest quality standards,” said Massaad.

“The quality of the company’s rebars has already received approval from leading consultants, contractors and Dubai Municipality, and we are confident of significantly growing our client base across the country in the shortest possible time.”
 
RAK Steel Director Sundeep Rao said that the company was able to set up the factory in a record time of 18 months due to the pro-business investment climate in the emirate.

“The plant has also been set up very economically with just 60 per cent of the costs incurred by equivalent plants in the region,” he added. “We hope to be competitive in the pricing of our products.”

The establishment of RAK Steel comes at a time when demand for steel is at an all-time high, fuelled by the construction boom in the UAE and the Middle East region.

The Gulf Organisation for Industrial Consulting recently said up to 66m tonnes of rebar products would be used over the next 15 years.

The value of projects under construction in the UAE alone is estimated at Dh800bn, while the figure for the entire region is more than $800bn (Dh2.9bn).

The Ras Al Khaimah Government established Rakia to assist investors intending to set up businesses in industry, tourism, leisure, real estate and infrastructure in the emirate. Since its inception in May 2005 Rakia has attracted an investment of Dh2bn through 1,150 companies.