Conares opens 12’’ pipe mill at an investment of AED 100m in JAFZA … reports Asian Lite News.
Conares, the second largest private steel manufacturer in the UAE, has inaugurated its 12’’ pipe mill in Jebel Ali Free Zone. The new state-of-art facility, installed with an investment of AED 100 million, now makes Conares a manufacturer of 1-million-ton steel products annually.
Bollywood megastar Shah Rukh Khan inaugurated the new plant in the presence of HE Mohammed Al Muallem, CEO & Managing Director, UAE Region – DP World and other senior officials.
Conares is the leading producer of steel pipes and rebars within the region, and the only private manufacturer in the UAE. The company is also amongst the top three steel rebar mills operating 24×7 to serve the upcoming projects in the country.
Commenting on the new facility, Mr. Bharat Bhatia, CEO of Conares, said, “We are proud to launch the 12’’ pipe mill, which will increase our pipe manufacturing capacity by 250,000 metric tonnes. This mill increases our pipe product range, enabling us to meet the growing demand from the region’s infrastructure development sector. With this we have now achieved our milestone of 1 million tonnes capacity of steel production annually.”
“In terms of facility growth, we are aligning Conares with the region’s commitment to infrastructure developments keeping the vision of the UAE and Dubai Vision 2021. For Conares, the Vision 2021 is crucial to make it a manufacturing powerhouse. We foresee a good demand for our products for the ongoing projects in the UAE, especially the projects related to development to host the World Expo 2020 in Dubai. The new plant will produce pipes ranging from 4” to 12” sizes,” he added.
“We plan to produce 20 per cent more than last year. Last year, we produced 525,000 metric tonnes and this year we intend to produce more than 635,000 metric tonnes. We crossed a turnover of above AED 1 billion in 2017. Compared to this, we expect a revenue increase by 30 per cent in 2018.”
“Conares has already drawn fresh plans for expansion. We have commenced construction of our Continuous Color Coating Mill at an estimated investment of AED 100 million. We expect to commission this plant soon with commercial production expected to begin in the last quarter of this year,” Mr. Bhatia elaborated.
“We strongly believe in the vision of the leadership of this nation. With the support from federal and local government agencies, our products have not only gained market wide acceptance but also are the preferred choice of many prestigious projects today,” he said.
“We have good presence in the international market as well. We are exporting our pipes and tubes to different countries outside the UAE and the GCC since 2005. Conares’ export to the US is nearly 15 per cent of its total production. We are also in the process of developing new markets for our products,” he added.
Speaking about the growth of steel industry towards 2020, Mr. Bhatia said, “We have a positive outlook until 2020, and see a good demand within the UAE and the GCC region. The Expo 2020 and UAE Vision 2021 will keep most of the producers busy in meeting the steel requirements. Lately, we also meet enquiries from many countries, which can receive the cargo in maximum three weeks.”
Conares has constantly been evolving with the region. The company’s growth has remained on a buoyant trajectory since three decades of its operations, helping it cross significant growth milestones in the steel industry.