Assent to expand Dubai Industrial Park unit
DUBAI, February 6, 2017
Al Shafar Steel Engineering (Assent), a leading company in the field of structural steel design and manufacturing and a member of the UAE-based Al Shafar Group of Companies, has announced plans to double its facilities at Dubai Industrial Park.
The expansion, which will result in one of the largest steel manufacturing companies in the region, is geared to grow the firm's operational footprint in the UAE and the wider GCC region.
As per the expansion land lease area plan, Assent will add four new facilities spread over an additional 1.2-million-sq-ft area, registering a total leasable area of 2.4 million sq ft.
Construction is scheduled to begin in the second quarter, and the new facility is estimated to start operations by the end of 2018.
As part of the expansion plans, Assent will invest Dh100 million ($27.2 million) in the construction of facilities and Dh75 million ($21 million) towards installation of new machinery.
With 2,300 employees projected to work on site, the state-of-the-art factory will manufacture and fabricate ready-to-use products for delivery to local clients, with integrated facilities for warehousing, storage and offices.
Once the new facilities are commissioned towards end-2018, they will enable Assent to increase its annual production value by approximately Dh300 million ($81.6 million) in the first two years, with an annual growth of 15 to 20 per cent in subsequent years.
This growth will add to Assent's current annual production levels that stand between Dh800 million and Dh1 billion ($217 million and $272 million).
Speaking on the expansion, Amr Ali Ahmed, the manager partner and CEO of Assent, said: "Strengthening our services to customers and catering to the rising regional demand for steel are the key reasons for our decision."
"With the UAE’s steel manufacturing sector expected to grow to a robust 20 per cent by 2021, a bigger factory shall place us in a superior position to contribute towards this growth. It will also help us achieve our long-term vision of expanding our footprint within the UAE and the GCC region," he stated.
Ahmed said the decision to locate Assent's facility in Dubai Industrial Park was influenced by the unique partnership it enjoys with the industrial hub.
"This prized partnership is the backbone of our commitment to effectively serve our customers, and to contribute towards accelerating industrial growth in the UAE. By improving quality, service and productivity, we aim to make the UAE the clear leader of industrial products in the region," he noted.
Saud Abu Al Shawareb, the chief operating officer of Dubai Industrial Park, said: "We are pleased to witness the strategic expansion of Assent. The new facilities will promote industrial growth and sustainability for the benefit of the community."
"In recent years, the UAE has become a highly promising destination for local steel manufacturing, and the sector is an active contributor to the nation's non-oil GDP. Assent's expansion further testifies to Dubai Industrial Park's commitment to provide world-class infrastructure that fuels client growth and supports their strategic ambitions," he added.-TradeArabia News Service