Jafza-based Conares Metal Supply’s new $70 million facility is nearing completion and will start operations in the first quarter, according to the company chief.

Despite a slump in the global steel industry, the company's expansion plan is on track, according to Bharat Bhatia, managing director, Conares.

The completion of the project will increase its production capacity by 3.5 times in the next six months. Conares is a leading steel company in the UAE with its headquarters based in Jafza.

“The first phase of the new 100,000 sqm facility, located in Jafza South, is almost complete and is expected to start operations in the first quarter of 2010. The 40,000 sqm first phase will be able to produce 500,000 tons of reinforced bar a year. With the addition of this capacity, the company’s total production will jump to 700,000 tons a year from its current capacity of 200,000 ton,” stated Bhatia.

“It is important to mention that the logistical advantage we gain from being located in Jafza is essential in making sure planned investment are made and capacity get enhanced without hindrance.”

Underlining the performance of the company which started its operation in Jafza in 2000, Bhatia said, “We’ve reached a milestone with the construction of our new facility in Jafza South Zone. This significant expansion plan is consistent with our strategy of not only strengthening but spreading our business to new areas and markets.”

Conares currently caters to the growing markets in the UAE, GCC, Africa, Pakistan, US and Canada among other countries in the region and beyond.-TradeArabia News Service