Emirates Steel – now the largest steel producer in UAE, announced that profits to the close of its FY in September had doubled over the previous year.
Now in the second phase of its expansion, market share has grown to 60% of UAE’s consumption and it has also expanded its export market.
The improved result is a consequence of it producing more of its own liquid steel using the DRI-EAF route. 83% of finished steel was made from its own liquid steel in the first 9-months of 20ll, compared with 51% for the same period 2010.
Commissioning of phase 2 is scheduled for the final quarter 2011 and will increase rolled output from 2Mt/y to 3Mt/y. Phase 1 produces rebar and bar products while phase 2 will produce heavy and Jumbo sections. The heavy section mill is scheduled for commissioning in 2012.
Capital expenditure for Phase 1 & 2 together is around AED 9bn (US$2.45bn). Phase 3 will produce hot rolled strip in coil and bring capacity up to 4.6Mt/y.