Emirates Building Systems (EBS), a wholly-owned subsidiary of Dubai Investments and a regional pioneer in the design, fabrication and construction of steel structures, seeks to strengthen its export sales in Africa and Asia, as it makes a foray into regions beyond the UAE and the Middle East.

The company which has a significant international presence in markets including the GCC region, Pakistan, Bangladesh, and has executed thousands of projects catering to an extensive client base across the globe, has now trained its sights on these overseas markets which according to the General Manager of Emirates Building Systems (EBS) Joseph Chidiac, are still ‘unexplored and hold enormous potential’.

Drawing upon its reputation as one of the UAE’s leading manufacturers of steel structures, the company now plans to put its stamp on these markets by opening new sales offices and appointing new agents and builders, he said.

Chidiac: penetrating new markets

“Our growth in African and Asian markets will continue by opening new sales offices and by appointing new agents and builders. We are expecting to have more than 75 per cent of our business from these regions in the coming two years,” Chidiac told the Gulf Industry in an exclusive interview.

Currently, 50 per cent of the company’s total products are exported to Africa and Asia markets, he revealed. EBS is targeting an increase of around 25 per cent from these two markets alone, on which it plans to pay greater attention and pursue more aggressively while it will be on the watch for new growth opportunities in other places.

Major milestones

EBS has achieved commendable milestones in the field of steel structure fabrication since its inception in 1997. Established as a subsidiary of Dubai Investments, its facilities extend over an area of 140,000 sq m and its annual fabrication capacity is more than 75,000 metric tonnes (MT).

As a regional pioneer in the design, fabrication, and construction of quality steel structures, EBS’s projects portfolio consists of high-rise buildings, airports and metro railways, power plants, refineries, oil and gas structures, factories, bridges, logistics and distribution centers, warehouses, theme parks, poultries and dairy farms, car parks, etc.

EBS manufactures a wide range of steel structures

All these are executed by working closely with architects, client’s teams, consultants, and authorities, ensuring compliance to design and commercial requirements in addition to delivering safe, sustainable, and cost-effective buildings.

In fact, its march for growth continued even in 2020, a year when businesses worldwide were hit by the global pandemic Covid-19. According to Chidiac, in order to boost exports and sustain its growth during the pandemic induced downturn, the company’s growth strategy centered on penetrating new markets especially in Africa and Asia.

“Even as we were faced with disturbances due to the pandemic in 2020, our business has grown in 2020 and is expected to continue its run beyond 2021. This was primarily due to the company’s strategy to penetrate new markets especially in Africa and Asia,” he said.

Some of the projects the company is executing at present in these continents include the design, manufacturing, and supply of a steel structure, sheeting and accessories for a multistory car parks, hospitals and factories in Ivory Coast, power plants in Mali and Senegal, factories in Ghana and Mauritania, steel structures for oil and gas field development in Algeria, the construction of industrial parks in Ethiopia, factories in Pakistan, to name a few.

Covid-19 Challenges

Talking about the challenges, Chidiac outlined – increasing material and shipment costs – as the main issue. Stiff competition, overcapacity, maximisation of automation, effective and timely customer service without any delays were some of the other unavoidable challenges faced by the company.

EBS’ 75,000 MT facility in the UAE

“We cannot ignore the consequences of the Covid-19 pandemic, which has affected business globally.  We are thankful for the support provided by the UAE government, which has enabled key industries like manufacturing to meet the local and international demands and to maintain its production schedule. However, as most countries have been gradually reopening from their lockdowns, and the economic activities are recovering, we expect more growth in EBS expansion and investment plans,” Chidiac said.

Commenting on how the company tackled Covid-19 impact, he said: “As a group, we along with our parent company Dubai Investments, implemented and rolled-out various precautionary measures to combat the Covid-19 pandemic.”

At EBS, the priority was to keep well stocked to take care of its immediate materials and consumable needs, he said. “Stocks are maintained for a minimum of six months to secure continuity in our production schedules and maintain timely delivery commitments. The local and regional sourcing of materials helps to improve competitiveness, meet project timelines, and ensure on-time delivery of projects. Bulk purchases well in advance of project schedules was another major advantage that helped us mitigate the risks and navigate smoothly during these unprecedented times with zero cancelled orders or held projects,” Chidiac revealed.

“The support from the local government towards supporting these initiatives have benefited the economy and helped maintain stimulus around UAE's most significant sector, giving a boost to the local construction industry,” he added.

EBS has executed prime projects in the region

Contributing to UAE

Commenting on EBS’s contribution to the UAE’s industrial sector, Chadiac said that as one of the leading manufacturers of steel structures in the Middle East, apart from being the market leader in the UAE, EBS has been instrumental in the development of the country, with an impressive portfolio of completed projects.

The company’s steel structures and products are used in the power sector and the oil and gas industry, thereby contributing to the UAE’s GDP. Furthermore, it specialises in steel structures which have been used in metro stations and airport passenger and cargo terminals, among other things.

The company’s notable projects which have been completed include Dubai World Central International Airport-Cargo Terminal and Passenger Terminal, Dubai Metro, Dubai Prosecution New Building, Factories and Logistic centres, high rise buildings with more than 50 storeys, oil and gas pipelines and refineries, power plants and others. 

In addition to its projects in the UAE, EBS has executed landmark projects in the region. These include depots for the Riyadh Metro in Saudi, 218 m skyscraper for Al Tijariya tower in Kuwait, 25 & 47 storeys Towers in Bahrain, Bahrain Mall, SUR IPP Power plant and shopping malls in Oman, Mazoun Dairy in Oman, steel structures in Duqm refineries, QSTec Polysilicon project in Qatar, and others.

Among the major projects currently being executed by EBS are: Tinr Hert Field Development and Ain Tsila Development projects in Algeria, Industrial Parks in Ethiopia, Power station in Mali, Shopping mall in Ivory Coast, Factory in Ghana, Factories in Mauritania, Tiles Factories in Pakistan, Steam Turbine buildings in Solar parks Dubai, Dubai Prosecution New Building, Waste to Energy Plan in Sharjah, etc.

“EBS factory located in the UAE produces thousands of tonnes of steel annually and we are constantly looking at new and improved ways to increase production and meet local demands,” Chidiac said.

Technology Advances

Chidiac admits that technological advancements have helped EBS ace up its manufacturing prowess. Elaborating on the major technologies being used at EBS, he said: “The most advanced technologies are utilised in our factories throughout all stages of the manufacturing process starting from the cutting and drilling of the steel, fitting, and welding activities till the painting lines. Our engineering departments are using the latest design and drawings software’s which are increasing the productivity of the designers, improving the quality of the design, creating the database for manufacturing, and saving of design data and drawings etc.”

EBS is also using an ERP system which is helping it to improve productivity, increase efficiencies, reduce material wastage, decrease costs, and streamline processes. “This software creates a leaner and accurate operation and provides a complete, 360 view into the ins and outs of our business,” he said.

“This software is allowing us to think ahead and properly plan what we need from inventory and sales down to financials and customer service. With stronger forecasting, we can effectively decrease business costs, which saves money as well as become a more overall proactive unit and agile which improves customer service,” he added.

EXPO 2020 push

Meanwhile, at home, the company recently got a major uplift with the completion of four Expo 2020 pavilions worth in excess of AED23 million ($6.2 million).

This included provision of steel structure and fabrication works of the Kuwait, Russia, Indonesia and Uzbekistan pavilions. To complete the engineering, fabrication and erection works of the pavilions, EBS supplied more than 2400 MT of steel. EBS also provided the decking and accessories for the pavilions.

The Kuwait and the Russia pavilions are estimated at more than 6,500 sq. m each. The Indonesia pavilion on the other hand is spread across 3,200 sq. m and the Uzbekistan pavilion stands with an area of 2,300 sq. m. More than 18,500 sq. m of pavilion space was constructed with the EBS products.

EBS has successfully completed the projects and handed over the projects. Chadiac said: “Each pavilion was symbolic and represented a nation and a lot of planning has been integrated into the design elements.”

“Providing a solid structural framework to these pavilions, was crucial in determining a well-laid external facade along with enhancing the overall look and feel of the project. Integrating EBS technical expertise, implementing the past project experience and optimizing product capability, the Expo 2020 pavilions add up to the list of complex and prestigious projects for EBS,” he noted.

Market Dynamics

The changing market is further driving the EBS growth story. According to industry reports, the global steel market is expected to grow in future owing to increasing infrastructural activities and rising adoption of steel in automotive, electrical, and other end-use industries.

The factors such as rising population growth, growing urban population, growing automobile sector, growing spending on construction and infrastructure projects and growing demand for long steel are expected to drive the market. However, the growth of the industry will be challenged by price volatility.

In the Middle East region, the steel building market is growing at a rapid pace. Reports indicate that rapid investments within the services and the tourism sector have been key factors driving the structural steel market growth. This has led to large scale investments in the infrastructure, hospitality, and healthcare sectors but has also increased the demand of steel structures and Pre-Engineered Buildings (PEBs) in the industrial, commercial, and residential sectors.

“The steel industry in the UAE is projected to grow more in 2021 as growth will be driven by ambitious projects to be completed before Expo 2020. Demand for steel products remains stable and on an upward trend despite fluctuations in the construction market, with a further considerable growth as of 2026 and onwards which will encourage local producers,” Chadiac said.

Commenting on the company’s plans for the coming years, he said: “Drawing on EBS’s technical expertise and prestigious product portfolio, the company is strengthening its presence by capitalising on significant opportunities to expand business, optimise product capability, and engage in complex projects to further enhance profile across the region.”