Emirates Steel, a subsidiary of the General Holding Corporation (SENAAT), reported AED6.6bn in revenues achieved in 2017, an increase of 22% compared to AED5.4bn in 2016.
Despite a challenging year for global steel industry, production increased to more than 3.2 million tons by the end of the year, up from 3.1 million tons in 2016. Export sales accounted for 20% of total volumes, with the remaining 80% being consumed within the UAE.
During an annual media briefing, HE Engineer Saeed Ghumran Al Remeithi, chief executive officer, said: The positive results achieved by Emirates Steel in 2017 clearly indicate the success of the companys resilient business model, despite the challenges faced by the metals and steel industry globally.
The increasing demand for Emirates Steels products in the international markets is a testament to their high quality, which will open further doors for entering new emerging and developed markets. We will continue to increase sales revenues and reduce direct and indirect costs to further improve the company’s financial performance. This will be achieved by increasing volumes, driving efficiencies and further developing our product range to achieve our production capacity of 3.5 million tons per year, raising safety standards and entering new markets to further expand our global footprint.
Having delivered year-on-year growth, the company continues to enhance its position as a world-class steel manufacturer, providing the highest quality products, services, and solutions to our customers.
Emirates Steel has recently developed a scrap shredding facility that supports increased efficiencies in the operation of the electric arc furnaces. This new facility will play a major role in recycling scrap metal available in the emirates, as well as reducing operating costs and increasing flexibility for the primary feedstock used by the company.
In addition, the company has successfully designed and developed a twin-casting system, the first of its kind in the UAE, that will enable the company to further increase volumes. The success of this new technology was confirmed on commissioning in July 2017, as it had increased the production capacity of Steel Casting 2 to 20%
Al Remeithi added: We will rely heavily on the heavy sections mill when implementing our expansion strategy, further targeting new markets” he added. The plant was commissioned in 2013 with production reaching 540,000 tons per annum in 2017. In addition, the company has continued to produce rebar and increase its production to 2.2 million ton per annum in 2017, compared to 2.1 million ton per annum in 2016.
The company is currently diversifying its product strategy with the development of value-added products such as specialist steel wire rods as used in a diverse range of applications – from the automotive sector to the manufacture of furniture. The company’s heavy sections team has successfully developed a range of highly technical sheet pile products, the ES-Z range as part of Emirates Steels development strategy.
The company has implemented various cost control measures and this, along with the enhanced efficiencies and availability of the plants, has reduced the manufacturing costs per ton of steel (excl. feedstock) by 37% in the period from 2012 to 2017. Similarly, the overhead costs per ton of steel have been reduced by 25% in this period.
In line with its CSR commitment, Emirates Steel has implemented a number of initiatives to engage with the community and add value to the society.
‘We Give You Smile’, an initiative designed to help improve the quality of life for needy people, has been running for two years, benefiting 60 families in 2016 which increased to a total of 140 in 2017. In line with the spirit of unity, the company engaged its staff to distribute packed boxes of essential food items to families across the country. In cooperation with the UAE Red Crescent, Emirates Steel actively contributes to campaigns that aim to support orphans and refugees.