ESI sales revenue up by 135pc
Abu Dhabi, October 18, 2008
Emirates Steel Industries (ESI) said sales revenue to the end of third quarter this year reached close to Dh3 billion ($816.8 million), an increase of 135 per cent compared to Dh1.3 billion it achieved for the same period the previous year.
Hussain Al Nowais, chairman of ESI said the figure is expected to further grow in light of the real estate sector boom in the UAE, particularly in Abu Dhabi.
Al Nowais said total production for ESI to the end of the third quarter of this year reached approximately 770,000 tons, compared to 540,000 tons in the same period last year, a growth of 43 per cent in production.
ESI commissioned rolling mills, included in its first phase of expansion to meet growing demand for iron and steel in local and regional markets, and has increased its production capacity to 1.8 million tons annually.
Al Nowais said: 'Our technical teams, among them highly-trained Emirati technical experts, managed the routine maintenance and connection between old and new production lines in record time, quickly resuming production after only a temporary suspension last month.'
Al Nowais, who is also the chairman of Abu Dhabi Basic Industries Corporation, which took ownership of ESI two years ago, said that ESI continues to forge ahead with its Dh16.6 billion expansion plans to increase production.
'We are on target in terms of our expansion strategy, developed in parallel with the Abu Dhabi government's vision for the future, and, in accordance with Abu Dhabi Plan 2030, and believe that demand for steel will continue to grow.
'Our aim is for ESI to be ranked No 1 in the industry throughout the Gulf. We currently hold a significant share of the regional market, as we were one of the first companies to use the latest technologies and are the only company to operate an integrated steel plant that produces steel products in a range of sizes and qualities to meet the specific needs of end users in the construction sector.'
Saeed Al Romaithi, assistant vice president of Operations at ESI, reinforced that ESI is on target to increase production and grow its share of the domestic market, which today consumes ESI's entire production of steel.
Al Romaithi said: 'ESI signed contracts last year with four international companies, including the Brazilian company Vale, to secure our raw materials.'
He also added that the company's expansion plans include increasing the diversification of production of steel products: expanding beyond the production of reinforced rebar to include other types of products such as wire rod, sections and metal coil.
Al Romaithi added that over the next four years the ESI factories will comprise an integrated industrial complex, unique to the region.
Ahmed Al Dhaheri, assistant vice president of Projects, said that ESI recently completed a jetty with a capacity of up to approximately 5 million tons annually, to deliver raw materials for steel production.
Al Dhaheri, supervisor of ESI's expansion projects, explained that the company has begun the initial testing of the primary smelting unit and furnaces, and expects actual steel production to begin in January of next year.
The unit will have a production capacity of about 1.4 million tons per year, propelling the company to new heights in the regional steel manufacturing sector.
He also added that the unit will produce steel billets, the raw material for rolling mills, in turn reducing production costs by up to 40 per cent, as well as reducing the company's reliance on imported materials.
This will help to further stabilise output and increase the company's ability to control prices.
In an effort to further step up the pace of Emiratization at ESI, the company has adopted a training and career development program for all incoming Emirati employees under a long-ter