2.5 million tons of UAE consumption of rebar

2024-02-14 22:21:24

Youssef Al Arabi (Abu Dhabi)
The volume of domestic market consumption of rebar and iron wire coils grew by 15% during the year 2023, reaching 2.5 million tons, compared to about 2.13 million tons during the year 2022, according to Engineer Saeed Ghumran Al Rumaithi, Chairman of the Board of Directors of the Iron Producers Committee in the Emirates, President Executive Director of the Emirates Steel Arkan Group.
Al-Rumaithi told Al-Ittihad: The construction market in the UAE has achieved strong results compared to other global markets, noting that the construction sector in the UAE is based on strong foundations for growth as a result of the comprehensive economic renaissance, high oil prices, and the growth of neighboring markets in the Gulf, India and Africa. He pointed out that the prices of rebar in the local market declined by 7% compared to declines that ranged between 11% and 30% in global markets, attributing the stability of prices in the country to the presence of a strong rebar industry with a huge network of customers and suppliers.

Market share
Al Rumaithi said: The “Emirates Steel – Arkan” group maintains a market share in the local market amounting to 60% at the level of rebar, stressing that the group has increased the number of export destinations to bring its products manufactured in Abu Dhabi to 70 markets around the world, starting in the Middle East and North Africa. Africa to Europe, reaching North and South America, Southeast Asia and Australia.
He pointed out that the group focuses on manufacturing high-quality products that guarantee good profitability from rebar, coils, pivot plates, and heavy construction sections. The group also remains fully prepared to meet market demands, benefiting from the strength of its financial and operational position.
He said: The company is considering entering into manufacturing partnerships in a number of foreign markets such as Japan, and there are many investment opportunities in this regard.
Al Rumaithi stressed that the Emirates Arkan Steel group aims to reduce emissions and adopt sustainability solutions, in line with the UAE’s strategy to achieve climate neutrality by 2050. He explained that the level of emissions resulting from the group’s manufacturing operations is 40% lower compared to its counterparts who produce the same products in various parts of the world. the world.
Increase profits
Emirates Arkan Steel Group’s net profits grew by 18% to reach 602 million dirhams in 2023, compared to net profits of 510.2 million dirhams in 2022.
Al-Rumaithi attributed the reasons for the increase in the company’s profits during the year 2023 to increasing operational efficiency through cost-reduction programs, as the Namaa program has achieved cumulative savings amounting to about 500 million dirhams since its launch during the year 2021.
He pointed out that the Nama Program, which achieved savings of about 220 million dirhams during the year 2023, focuses on reducing operational expenses in all operations while increasing efficiency and flexibility.
The group adopted a new operating model based on the establishment of two separate business units, namely the Emirates Steel Unit and the Building Materials Unit, with the aim of benefiting from the common strengths of the steel and building materials business.
Strong request
The Group CEO said: These positive results reflect the strong demand from local and international customers for value-added products, the continuous improvement in the revenues and profits of the building materials unit, as well as the efficiency of operational processes at the group level.
He added that the focus on operational efficiency, disciplined cost management, as well as strengthening customer relationships, contributed to achieving positive results over the past year.
He stressed that the group is moving forward in 2024 by focusing on achieving high productivity rates to meet the evolving needs of customers. Based on the strong financial position, low debt and commitment to sustainability, the group will be able to continue seizing the best emerging opportunities and contribute effectively to achieving the climate goals of the UAE.