Al Ghurair Iron & Steel, announced an expansion of galvanized steel production from 200,000 tons to 400,000 tons per annum, at a press conference held in Abu Dhabi.
Speaking to the media, Mr. Abu Bucker Husain, CEO of Al Ghurair Iron & Steel, said that expansion will help the company to produce galvanized steel in 0.2 mm thickness in order to provide complete solution to their clients.
Al Ghurair Iron & Steel previously was able to offer galvanized steel from 0.3 mm to 2.5 mm. AGIS hopes that expansion in production and product specification will help them to remain the pioneer in galvanized steel supplier in the local market.
Mr. Abu said in his presentation that in addition to new galvanized line, company added skin pass line for PPGI customers.
Galvanized and prepainted steel consumption in UAE market is about 450,000 tons per annum. With recent expansion of AGIS, company will stamp down their authority as the leading galvanized steel supplier in the country.
AGIS exports about 55 pct of the company's production, mainly to other Gulf markets and the wider Middle East and North Africa region. The remainder is sold within the UAE.
Mr. Abu insists that despite new galvanized mill is in the horizon, AGIS will lead the market because of being preferred choice by local customers.
Mr. Abu complained that his company and other UAE producers were struggling against dumping by producers in countries including China, India and Turkey. Al Ghurair Iron & Steel is increasing its output partly to avoid losing market share to the dumping, he said.
"A lot more can be done to stop this dumping, which puts us domestic producers at a huge disadvantage," he said. "When we export to other countries we pay duty, so it is not fair and we need a level playing field."
Speaking to MEsteel, Mr. B.S. Shetty, General Manager Commercial, said that AGIS will remain committed to provide excellent service and best product quality to their customers in UAE and other MENA countries. He pointed out the AGIS production capacity utilization and excellent sales record in the past few years to reaffirm the AGIS brand is famous among local customers.
AGIS is currently booked till November and offering galvanized coils for December shipment.
AGIS appointed Al Hassan Eng. Consultants as main contractor for expansion program. Equipment was provided by CMI. Engineering consultant was Espic from India and Steel buildings were provided by Mabani. Gas plant was supplied by Airtech.
The company is a 80:20 venture between Dubai's Al Ghurair group and Japan's Nippon Steel & Sumitomo Metal Corp.
Including the recent expansion, Al Ghurair Iron & Steel has invested USD280 mln in its steel plant, which began operating in 2009. Current turnover is around 750 mln dirhams (USD204 mln).