(MENAFN - Khaleej Times) Conares Metal Supply, a prominent player in the regional downstream steel products industry, is planning a backward integration by manufacturing its steel billets, said the company's top official.
Speaking exclusively to Khaleej times, Bharat Bhatia, chief executive officer and managing director, Conares Metal Supply, said: "Looking forward to our growth in this region it is only a strategic step to opt for backward integration. We are currently in finalising stage of our plans. The UAE is becoming a hub for entire the Middle East for steel sector and we wish to cash on this opportunity."
Conares is currently one of the leading privately funded producers of 40mm rebars in its installed facility in Jebel Ali Free Zone and has recorded a 100 per cent growth compared to last year. The growth surge is attributed to the growing demand for quality products in the region.
Bhatia said: "We are very satisfied with our market share in its first year for rebar. This was possible only through the efforts of our sales and marketing team. We have received good recognition in 2012. Local producers are also seeing positive signs with real estate showing some movement. There are positive vibes that market is feeling from investors and government projects, which are coming on stream. We see steel prices and demand recovering towards the second quarter of 2013."
The company uses 60 per cent of its consumption for local purposes while 40 per cent is used for exports. The exports of rebar are mainly to the GCC, Singapore, India, Sri Lanka, Hong Kong, Iraq, Pakistan and African countries. The pipes are exported to Australia, Europe and some parts of Northern America. "The demand from African countries is increasing almost 100 per cent compared to previous years," added Bhatia.
The company's current annual capacity is 500,000 tonnes per year for rebar and 200,000 tonnes for pipes and tubes. Its products are certified by CARES, DCL and the company quality management system is ISO certified.