Emirates Steel: increasing focus on special segments to achieve additional value

Emirates Steel: increasing focus on special segments to achieve additional value

Emirates Steel sets production record

Despite increasing competition and falling global steel prices, the steel making firm owned by Abu Dhabi’s conglomerate Senaat set an output record at one of its plants

February 2017

Emirates Steel, the only integrated steel plant in the UAE, posted new production records in 2016, further strengthening the performance of the non-oil sectors in the country.

The company exceeded its last manufacturing record at its Steel Making Plant 2 (SMP2) to achieve 40 heats per day of 6,024 tonnes of beam blanks, accomplishing an unmatched record on international level from a 150 tonnes electric arc furnace plant, a statement said.

Emirates Steel, owned by Senaat, also reported that its rebar rolling mill RM5 production exceeded 500,000 tonnes in 2016.

The direct reduction plants (DRP) production jumped 9 per cent in 2016 compared with 2015, whereas rolling production witnessed an increase of 6.2 per cent for its Rolling Mill 2 (RM2) and 7.7 per cent for Rolling Mill 5 (RM5), while its SMP2 and SMP3 reported production increases by 8.2 per cent and 10 per cent,  respectively in 2016.

Up to end December 2016, Emirates Steel produced 510,000 tonnes of wire rod, 2,068,000 tonnes of rebar and 547,000 tonnes of heavy section including sheet piles.

Moreover, in 2016 the company reported sales of 2,139,203 tonnes of rebar compared to 2,046,314 tonnes in 2015. It also sold 422,542 tonnes of wire rod compared to 353,106 tonnes in 2015 and 479,807 tonnes of heavy sections compared to 522,978 tonnes in 2015.

Emirates Steel increased focus on special segments to achieve additional value for the business across its product lines, such as diversifying its heavy section products by developing in-house highly competitive sheet piles; the long structural sections with a vertical interlocking system, mainly used to create a wall which is earth tight or water resistant. The company reported sales of 51,730 tonnes of sheet piles compared to 15,360 tonnes in 2015, achieving an increase of deliveries of around 236.8 per cent.

The company also achieved an increase of 31 per cent in its deliveries of value added rebar and wire rod in 2016. It dispatched 17,426 tonnes of value added rebar, and 49,370 tonnes of value added wire rod.

Emirates Steel attributed the new record to operational improvements completed by the company, accordingly generating positive net profit despite the difficult market environment while achieving cost figures that are below international benchmarks.

It has strategically put in place a number of significant actions such as optimal productivity and adaptations, as well as supply chain transformation initiatives aiming to further improve performance and value to business.

The company’s current product range includes: straight length reinforcing bar (rebar) and rebar in coil, wire rod, hot rolled structural steel sections ( beams, columns, channels and sheet piles), in addition to value-added products, including stronger steel with higher tensile strengths and steels with special mechanical properties so that lesser quantity of steel is required by customers.

Emirates Steel has maintained its position in domestic market through a policy of actively developing strategic relations with its customers, just in time deliveries, and an absolute focus on customer service, sustaining its domestic market share to approximately 70 per cent, while significantly expanding its export business, particularly for higher value added products, the company said.


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