Zamil Steel officially opens $32m Indian factory

The state-of-the-art manufacturing facility, built across an area of 87,000 square meters, is capable of producing 30,000 MT of pre-engineered buildings ("PEB") and other steel products per year, to meet the demands of Zamil Steel India's clients in the domestic and export markets. Total investment in the new plant is approximately SAR120m ($32m).

Pre-engineered steel buildings are well suited for use as factories, warehouses, labor camps, supermarkets and for many other industrial and commercial purposes. The facility is already producing and supplying high-end pre-engineered steel buildings to various customers in Bangalore, Chennai, Hyderabad, and Jamshedpur. The company is planning to set up a second PEB manufacturing facility in India by 2010 or 2011 depending on the future demand for PEB products in the Indian market. Zamil Steel also plans to launch its other divisions: Structural Steel, Towers and Galvanizing, and Canam Joists and Decking in India in the future.

The opening ceremony was held under the patronage of Dr. Abdulrahman Al Zamil, Chairman of Zamil Industrial, and leading architects and clients of Zamil Steel India. Attending dignitaries included local government officials and representatives, and senior Zamil Steel executives from the company's Saudi Arabia and India facilities.

At the opening ceremony of the new factory, Adnan Al Mansour, President of Zamil Steel Industries, stated:

"India represents a key market location in our overall growth strategy. The new facility has already demonstrated the value of proximity to India's rapidly expanding customer base. It will enable us to continue to provide a broad and expanding range of products that meet the varied needs of our widening customer base, appeal to new and current clients, and function as the building blocks of our growth and expansion of across the region."

Commenting on the new manufacturing facility in India, Mr. Gandhi Tayoun, General Manager of Zamil Steel India explained:

"We closely assessed the market opportunity of the Indian PEB sector over the last few years and we are now ready to make our presence felt in the marketplace with the launch of our new plant. We look forward to bringing our global expertise and best practices along with world class products to our customers in India. The new plant also significantly strengthens our position in the global market place for steel products."