Conares, the UAE’s second largest private steel manufacturer, has started installation of a 12-inch pipe mill at its Jebel Ali Free Zone facility as it works toward increasing its annual steel production to 1 million tons.
“We are enhancing our pipe manufacturing facilities and the new size range of the product will be from 4 inches to 12 inches,” Conares CEO Bharat Bhatia said. “We planned to increase the size of our pipe range a couple of years ago in order to meet the growing demand from the region's infrastructure development sector. Keeping the vision of the UAE and Dubai 2021, we expect multiplying our revenues to exceed ($544 million). In terms of facility growth, we are aligning Conares with the region's commitment to infrastructure developments. The Vision 2021 for Conares is crucial to make it a manufacturing powerhouse.”
Conares recently celebrated its 25th year of business in the market as the region’s top provider of downstream steel products. The company currently manufactures steel pipes and rebar in technologically advanced plants in Jafza. Its rebar currently is approximately 20 percent of the UAE market share, while the pipes represent roughly 25 percent of the total market demand in the area.
“We strongly believe in the vision of the leadership of this nation, and are motivated by the continuous evolution to live in such world-class cities,” Bhatia said. “The expanded facility will be ready for operations in the last quarter of the current year. We are also planning other investments for the company. We foresee a good demand for our products for the ongoing projects in the UAE, especially the projects related to infrastructure development to host the World Expo 2020 in Dubai and the FIFA World Cup 2022 in Qatar.”
“Conares has been growing to deliver 1 million tons of steel annually,” Bhatia said. “Being a 100 percent privately owned entity, our assets exceed 300 million of investments in the UAE. With the support from federal and local government agencies, our products have not only gained market wide acceptance but also are preferred choice of many prestigious projects today.”
“The increased steel demand for steel in the UAE will surface from 2016, having an additional growth of 10 percent on a yearly basis from the year 2017,” Bhatia said. “From the steel industry standpoint, local manufacturers will be in a strong position to cater to each of the upcoming projects. Aside from this, we witness a lot of job opportunities since the beginning of the current year.”
Conares has achieved the mark of manufacturing 1 million tons of steel annually with the addition of the installation of its 12” pipe mill. Prior to the milestone, the company manufactured 500,000 tons of steel rebars and 250,000 tons of pipes per year. The expansion of Conares’ plant will add 250,000 tons to its yearly manufacturing stats.