ETA Ascon Star Group forays into steel manufacturing

The parent company is investing $80m in setting up state-of-the-art Steel Rolling Mills - one to produce Steel Rebars and the other to produce Steel Structural Sections at the Hamriyah Free Zone - Sharjah (UAE).

The expected production of Steel Rebars is 360,000TPA and Steel Structural Sections is 240,000TPA. Besides a 120,000MTPA Steel Bar Profiling (Cut & Bend) facility has been recently commissioned.

With an estimated annual turnover of $420m Star Steel International plans to start its commercial production by the beginning of 2009, suitably timed with a revival in the steel market.

Commenting on the new announcement, Mr. M. K. Abdul Razick, Executive Director Star Steel International said:

"We have a strong presence in the Steel Trading Business in this region, which we initiated in 2005. With Star Steel International we wish to consolidate our position in the Steel Manufacturing Business in the UAE. We are in addition considering setting up our own Steel Melt Shops in Abu Dhabi by the second quarter of 2009."

UAE figures as one of the top steel consumption country (construction and infrastructural steel) in the world with a consumption of 1333kg per capita, compared to world per capita of 182kg and GCC per capita of 450kg.

Moreover, steel consumption across the GCC has increased significantly due to demand from construction and infrastructural development.

UAE still depends on huge quantity of steel imports, Star Steel International wishes to cater to this demand and, with its new plants in place, its target contribution will be approximately 5% of UAE's total demand i.e. 7 million tonnes of Steel Rebars and approximately 25% of UAE's total demand of Steel Structural Sections i.e. 1 million tonnes.

"Furthermore, we are simultaneously investing in human capital; we will be employing more than 250 people to support this development. We are also investing in latest state-of-the-art technology and a strong regional distribution network to ensure our plants become a reliable source for Steel and Steel products in the regions we operate in. Besides UAE, we are considering exporting to neighbouring GCC countries and Iran in the near future," Mr. Razick added.

ETA Ascon Star Group has installed these rolling mills with equipment purchased from Italian suppliers. This project is managed and constructed by Star Steel International's own project team.

All other amenities are being provided by the Hamriyah Free Zone authorities to facilitate smooth functioning of the units.