‘Made in UAE' steel products are more reliable to address local requirements, says Conares CEO

• HE Abdullah Al Saleh, Undersecretary of the UAE Ministry of Economy, visited the Conares stand (No. A111) in Zabeel Hall at the ongoing at Big 5 exhibition in Dubai World Trade Centre.
• The Dubai-headquartered company supplies 80,000 MT steel to four key infrastructure-development projects in the UAE in recent months.

Dubai, UAE, November 22, 2016: Steel manufacturing sector in the UAE is currently witnessing standard trends with improvement in growth by 15 to 20 per cent compared to that of the last year, thanks to the announcement of major infrastructure development projects across the country, says a top industry expert. From the steel industry standpoint, local manufacturers are in a strong position to cater to each of the upcoming projects.

Mr. Bharat Bhatia, CEO of Conares, the second largest private steel manufacturer in the UAE, said, “With the existing developments for the Expo 2020 and the plans envisioned under the Vision 2021, projects are on track to be completed before the year 2020. This anticipates a growth in the industry by 30 per cent until the end of this decade, which will help local steel manufacturers cater to the odd three to four million metric tonnes rebar demands for all these projects.”

He was speaking on the sidelines of the Big 5 International Business and Construction Show 2016, which kicked off in Dubai on Monday, November 21, 2016. Conares is exhibiting at Stand No. A111 in Zabeel Hall at Dubai World Trade Centre. HE Abdullah Al Saleh, Undersecretary of the UAE Ministry of Economy, visited the Conares stand.

“Conares is in a growth path to deliver 1 million metric tons of steel annually. The company’s current market reach for steel rebars is almost 100 per cent in the UAE; while it is 65 per cent in the UAE, 20 per cent in the region and 15 per cent in the part of the world for steel pipes,” added Mr. Bhatia.

He recently visited several project sites, where Conares supplied steel. Expressing confidence in the present market trend, he reiterated, “The demand is on an uptrend for the past few months in line with the ongoing infrastructure development activities to support the Expo 2020 to be hosted in the UAE. The Dubai Metro line expansion, the UAE national railway project, as well as the nuclear power plant in Abu Dhabi, to name a few, would also boost the steel sector further. The local mills in the UAE, are prepared to answer for the demand that will lead to Expo 2020. We have the capacity, the technology and the commercial viability to address these local requirements.”

Detailing on the industry growth and forecast for the coming years, Mr. Bhatia said, “There are positive expectations on steel demand, which will grow substantially. We believe, in the coming three years, the demand for steel products in the UAE is expected to increase by 10 per cent in 2017, 20 per cent in 2018 and a similar pace by 2019. This is an estimate based on the projects, which will be commencing due to nearing completion date related to the Expo 2020.”

“We have delivered a total of 80,000 metric tonnes of steel recently to four key infrastructure projects including Jebel Ali Bridge connecting North and South. We are aligning our production with the country’s commitment to infrastructure developments,” he elaborated.

According to the Conares chief, ‘Made in UAE’ steel products are more reliable than imports that usually take a minimum of 30 days to arrive in the UAE. Traders in the UAE are keen to buy from local manufacturers in order to save inventory cost and avoid risk of price fluctuations. “The UAE has a combined capacity to produce five million tons of steel rebars annually, which is more than sufficient to meet current demands of the country needing 3.5 to four million tons annually.”

“Apart from the announcement of major landmark projects; the improved efficiency of supply chain ecosystem in the industry, the capacity and technologies in place to cater to the requirement, and facilitating the adoption of latest innovations in production have also played a key role to signal a boom in the steel industry. Moreover, steel manufacturing has been vital to the growth of non-oil-dependent gross domestic product, further serving the economic diversity,” he further said.