Emirates Steel unfolds new branded products

20/08/2014 01:31 AST

UAE’s largest steelmaker Emirates Steel has set the stage to further expand its global presence and add more value-added steels to its product basket.

With better demand prospects and mega expansion plans in the pipeline within the Middle East region, Emirates Steel - the UAE’s only integrated steel producer of long products - told the media in a press release that it is now sharpening its focus on high-margin, high-strength value-added products (VAPs).

In an environment of low capacity utilisation, Emirates Steel is revisiting its optimisation models. Its strategies for the next five years include focusing on value-added products despite challenges of higher setup times and smaller production campaigns.

The Middle East region imports most of its value-added steel and Emirates Steel believes it can capitalise by manufacturing these products domestically.

“We have been closely observing the benefits large steel producers in the world are reaping by progressively moving into value-added products and we are hopeful that by adopting this model we will continue to protect our bottom line amid the current challenging industry circumstances,” said Emirates Steel’s CEO, Saeed G Al Romaithi.

Steelmakers from CIS have a larger share of basic grade steel in their steel production mix and would directly compete with the Chinese as compared to the Japanese or European steelmakers, who have a larger share of value added steel in their product mix.

VAPs are mainly finished steel and are termed so depending on their treatment or their end use. The products vary from sheet piles to high silica wire rod to long steel bars to alloy steel. The end users are primarily the construction and fabrication sectors. “Consumers are shifting to premium steel as it guarantees optimum returns on their investment,” pointed out Al Romaithi. This will eventually result in generating higher profit margins for the Senaat-owned steel company.

WAM