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Emirates Steel revenues up as output rise

Production of long products in 2013 reached 2.6 million tonnes, an increase of 12 per cent over 2012; of which 1.7 million tonnes were rebar, 316,000 tonnes structural steel and 573,000 tonnes wire rod. Encouraged by a buoyant project market in the region, the steelmaker sold three million tonnes of product in 2013, of which 1.9 million tonnes were sold in the domestic UAE market. The balance was exported to a diverse range of markets, including Europe, the Far East, the Americas and the Middle East.

“In spite of the difficult market conditions, our business continued to grow and enter new markets, delivering a solid performance in 2013,” said Saeed G Al Romaithi, CEO of Emirates Steel. While economic conditions for the global steel sector remain uncertain, many analysts are forecasting demand growth for steel in 2014.

In the MENA region, the World Steel Association, WSA, expected steel demand to grow by only 1.7 per cent to 64.3 million tonnes in 2013 — after 2.2 per cent growth was recorded in 2012. In 2014 the WSA forecasts steel demand in the region to grow by 7.3 per cent to reach 69 million tonnes.

“The GCC’s construction sector is becoming more stable which will drive the demand for steel. But more importantly, the multi-billion dollar infrastructure projects planned across the region will be the main driver and the cornerstone of the region’s economic growth in the coming years,” he highlighted.

2013 was an important year for Emiratisation at Emirates Steel. Throughout the year, the steelmaker provided professional education to UAE nationals with more than 624 training courses offered. Their numbers in the workforce also increased, pushing their ratio to 19 per cent. This percentage is expected to further increase to around 30 per cent in 2018.

Al Romaithi added, “The operating environment in the year 2013 continued to be challenging, but we, with the support of Senaat, delivered progress in a number of important areas”. In May, Emirates Steel dispatched its first shipment of structural steel to the American and Mexican ports of Huston and Altamira, a move which provided tangible evidence of the recognition of the company and its growth potential in the global marketplace.

“We have succeeded in exporting our products to our regional markets, in addition to the Indian sub-continent, Asia and Africa. With our recent sales to Europe and the Americas, we have now extended our global footprint to establish a measured presence in these developed markets,” said Al Romaithi.