Construction Week reported that Zamil Steel is looking to launch production facilities in Europe in the next 2 years as the metal giant continues its expansion.
Mr Aws Saleh district manager for the company for Dubai and the northern emirates said that the raw materials in countries such as the Ukraine and Romania make these markets attractive to the Dammam based company in particular to cover the Black Seas countries like Georgia.
Mr Saleh said that Zamil Steel aggressively expanded the capacity of its Towers & Galvanizing division one of four in the company earlier this year by investing SAR 40 million increase annual production capacity from 50,000 tonnes to 75,000 tonnes. It was also established as a limited liability company to separate
He said that “We have sales offices around the world and in the next two years we’ll start factories in Europe. The company had not settled on an exact date. When you’re looking at new factories there are three things to think about raw materials, manpower and logistics.”
Recently, Zamil Industrial Investment Company said that it is to establish Zamil Steel and Zamil Air Conditioners as separate limited liability companies, a move Mr Saleh said was to separate a number of department s that up to now had been shared by the two business lines such as finance and administration. Analysts told CW that the move may also have been to increase clarity on the contributions of revenues from these two entities to the overall group’s performance.
Mr Saleh also revealed that the company had plans this year to extend its facilities in Ras Al Khaimah which currently is one of the company’s main production hubs for its Towers & Galvanising, Pre Engineered Buildings and Structural Steel divisions along with Canam Asia, its JV with Canam the Canadian steel joist specialist. However, the price and supply of gas to factories meant that it was not economical to extend production in the northern-most emirate which is attempting to promote itself as a regional industrial hub.
(Sourced from Construction Week Online)
