Emirates Steel revenue rises 8 per cent last year to Dh6.5 billion

The World Steel Association forecasts a demand for steel in the Middle East and North Africa to grow by 7.3 per cent this year. Ryan Carter / The National

Emirates Steel reported revenues of Dh6.5 billion last year, up nearly 8 per cent on 2012 despite challenging global market conditions, the company said yesterday.

“In spite of the difficult market conditions our business continued to grow and enter new markets, delivering a solid performance in 2013,” said the chief executive Saeed Al Romaithi.

The company is set to benefit from increased stability and growth in local construction markets this year and beyond, he said.

The growth in revenue came despite sluggish demand across the global steel industry, excess steelmaking capacity in the world markets and continuing volatility in raw material costs, the company said.

A spokesman said that profits rose during the year, but declined to give further details.

The World Steel Association forecasts that demand for steel in the Middle East and North Africa will grow by 7.3 per cent this year, compared with 1.7 per cent in 2013.

“The multibillion-dollar infrastructure projects planned across the region will be the main driver and the cornerstone of the region’s economic growth in the coming years,” said Mr Al Romaithi. “The GCC’s construction sector is becoming more stable, which will drive the demand for steel.”

Emirates Steel, a part of General Holding Corporation (Senaat), sold 3 million tonnes of steel products last year, including 1.9 million tonnes in the UAE. The company’s production of long products, which include plates, sections, wire rod and semi-finished steel, reached 2.6 million tonnes, a 12 per cent year on year increase.

It was reported last month that the company was in talks with banks over a new US$1.3bn loan to refinance an existing $1.1bn facility and for cash to buy assets from Senaat.

A spokesman declined to comment on the status of the talks.