Strategic pivot, construction boom fuelled EMSTEEL's strong Q1 performance: Group CEO
18 May 2025 22:12
SARA ALZAABI (ABU DHABI)Powered by solar energy, streamlined logistics, and high-strength steel solutions, EMSTEEL closed the first quarter of 2025 with strong momentum. A strategic shift bolstered the company's performance despite a global dip in steel prices, its CEO told Aletihad.Ahead of the company's participation in Make it in the Emirates, which kicks off today, Eng. Saeed Ghumran Al Remeithi, Group CEO of EMSTEEL, said their Q1 revenue growth was underpinned by a strong combination of volume expansion, product mix optimisation, and strategic market positioning. EMSTEEL reported Dh2.2 billion in revenues for Q1 2025, marking a 1% increase compared to the same period last year."A 21% year-on-year increase in finished goods sales volume reflected both operational efficiency and robust customer demand," he said. Driven by the construction boom in the UAE, a strategic pivot played a key role in the company's strong performance, the CEO said. EMSTEEL has increased the production of its finished steel goods by 17% and sales by 21%, after fully converting its semi-finished billet stock to meet local demand.From low-margin billet sales to premium finished products such as rebar, wire rods and structural sections, EMSTEEL's drive has insulated the company from price pressures."This strategic repositioning affirms EMSTEEL's focus on quality-driven growth and long-term margin resilience," Al Remeithi told Aletihad. This shift to fully finished products also aligns with the company's operational direction. "While product mix may vary depending on market conditions, the company consistently aims to optimise value and performance across its offerings. This approach strengthens resilience against market volatility and aligns with the company's commitment to innovation, quality, and sustainable growth," Al Remeithi said.
A Dh625 Million Boost EMSTEEL is set to gain further momentum with its Dh625 million Asset Enhancement Programme, announced earlier this year. The initiative aims to enhance production flexibility, enable entry into high-end markets, and strategically expand the company's product mix to support energy infrastructure and key industrial sectors."The programme also strengthens EMSTEEL's position in sustainable manufacturing, enabling lower-emission operations and supporting the UAE's decarbonisation and localisation ambitions. Ultimately, this investment reinforces EMSTEEL's role as a regional leader in advanced steel solutions, ready to meet the demands of a rapidly evolving market," Al Remeithi said.
Looking Ahead The rail project between Oman and the UAE is bound to strengthen EMSTEEL's supply chain, especially with its new Al Ain rail facility that has an annual capacity of 4.2 million tonnes of bulk raw material, Al Remeithi said. This will enable cost-effective, sustainable supply for cement production and further drive regional growth.Emirates Cement, which recorded a 17% spike in sales, is now shifting focus to margin improvement and operational efficiency."The company is well-positioned to capture emerging opportunities, deepen customer relationships, and expand its footprint in high-growth segments," the group's CEO said.Sustainability is another focus for EMSTEEL. The UAE's largest industrial solar PV rooftop - which can deliver 50 million kWh annually - is set to power EMSTEEL's facilities. This has the potential to offset approximately 16,000 metric tonnes of CO₂ emissions."This initiative strengthens operational efficiency and reinforces EMSTEEL's leadership in industrial decarbonisation," Al Remeithi said.The evolving demand from the next crop of Abu Dhabi's transformative developments and mega projects has been shaping EMSTEEL's mission and priorities.
"Our steel has been used in some of the UAE's most iconic landmarks, including the Guggenheim Museum and Khalifa Port, and we are committed to supporting the emirate's continued growth," Al Remeithi said.
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