October 12, 2008

Indian AR Group in talks for rolling mill JV in UAE

It is reported that Indian manufacturer of medium and heavy mechanical engineering equipment AR Group is discussing with several local partners in the UAE to set up a steel rolling mill for the production of rebars and sections.

Mr Shitij Kapoor director of AR Group said that “UAE is facing shortfall of steel, as it is able to meet only 20% of its demand through local production. The steel industry in the UAE is facing shortfall of 73%. In addition, the overall demand in the GCC is growing at 19.3% YoY.”

Mr Kapoor said that “With a mix of imported sponge iron and steel scrap available in abundance in the GCC, AR would be able to produce structure angles steel required for high rise buildings.

Mr Kapoor said “The steel grade produced by AR Group complies with European quality standards. The company will also produce round bars for smaller storey buildings. This will bring the cost of steel prices down by 30%.”