Tuesday 26 September 2017
 
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Ali Ahmed: The expansion makes Shafar one of the largest
steel companies in the region

Al Shafar Steel plans $48m expansion at Dubai Industrial Park

DUBAI, February 6, 2017

UAE-based Al Shafar Steel Engineering (Assent), a leader in structural steel design and manufacturing and will invest Dh175 million ($47.6 million) in the expansion of its facilities located 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 company's operational footprint in the UAE and the wider GCC region.

As per the expansion land lease area plan, Assent, a member of the UAE-based Al Shafar Group of Companies, will add four new facilities spread over additional 1,200,000 sq ft of land, and that will lead into reaching a total leasable area of 2.4 million sq ft. Construction is scheduled to begin in Q2 2017, and the new facility is estimated to start operations by end-2018.

Assent will invest Dh100 million on the construction of facilities and Dh75 million on installing 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 in the first two years, with an annual growth of 15 per cent 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.

Amr Ali Ahmed, manager partner & CEO of Assent, said: “Strengthening our services to our customers and catering to the rising regional demand for steel are the key reasons for our decision to expand our facilities at Dubai Industrial Park. 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.”

“Our decision to locate our facility in Dubai Industrial Park was influenced by the unique partnership we enjoy 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 added.

Saud Abu Al-Shawareb, 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.” – TradeArabia News Service




Tags: Dubai industrial park |

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