Latest news with #AssetEnhancementProgramme
Al Etihad
18-05-2025
- Business
- Al Etihad
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 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 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 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 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 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.
Gulf Business
16-05-2025
- Business
- Gulf Business
UAE's EMSTEEL reports Dhs2.2bn Q1 revenue, launches upgrade programme
Image: Supplied One of the largest publicly traded steel and building materials manufacturers in the region, The group's strong operational performance saw finished goods steel production rise 17 per cent and sales volumes increase 21 per cent YoY to 811,000 tonnes, buoyed by robust construction activity in the UAE and effective market positioning. In contrast to Q1 2024, when nearly 100,000 tonnes of billets were sold, all semi-finished products in Q1 2025 were converted into finished goods to meet customer demand. EMSTEEL divisional highlghts Sales volumes for Emirates Cement also grew 17 per cent YoY. Despite a 6 per cent drop in average steel prices and the absence of billet sales — which accounted for 10 per cent of Q1 2024 revenue — EMSTEEL posted Dhs266m in EBITDA, with an EBITDA margin of 12.3 per cent, compared to 13.7 per cent in the prior-year period. Profit before tax stood at Dhs94m, while net profit after tax was Dhs86m. The Emirates Steel division contributed Dhs1.96bn in revenue and Dhs226m in EBITDA. Emirates Cement generated Dhs205m in revenue and Dhs40m in EBITDA. Within the cement division, the Pipes & Other segment, currently under divestment and reported as Assets Held for Sale, contributed Dhs45m in revenue. As of March 31, EMSTEEL reported a strong liquidity position with Dhs881m in cash on hand, up from Dhs823m at year-end 2024. The group also announced the launch of a Dhs625m Asset Enhancement Programme aimed at upgrading rolling mills and expanding its portfolio to include high-strength steel products such as ES600 and ASTM Grade 80/100 rebars. Plans also include installing a new 500 KTPA wire rod outlet. Comprehensive decarbonisation roadmap revealed Additionally, EMSTEEL revealed its comprehensive decarbonisation roadmap, targeting a 40 per cent reduction in greenhouse gas emissions from its steel business and a 30 per cent reduction from its cement business by 2030, with net-zero emissions set for 2050. Strategic agreements signed with Hafeet Rail Infrastructure and Minerals Development Oman (MDO) will facilitate sustainable cross-border transport of up to 4.2 million tonnes of raw materials annually from Oman to the UAE. The group also partnered with 'EMSTEEL's performance in Q1 2025 underscores our ability to deliver consistent value through operational excellence and strategic foresight,' said Engineer Saeed Ghumran Al Remeithi, group CEO. 'Our strategic investments — ranging from decarbonisation and advanced production upgrades to regional logistics and solar infrastructure—demonstrate our long-term vision for sustainable, shareholder-driven growth.'
Zawya
26-02-2025
- Business
- Zawya
EMSTEEL announces Asset Enhancement Programme valued at $170.1mln
EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, has announced the launch of its Asset Enhancement Programme - a strategic initiative with a CapEx of approximately AED625 million, designed to enhance production capabilities and introduce advanced steel solutions to meet growing market demands. The programme directly aligns with the UAE's Operation 300bn, aiming to upscale innovation in the UAE's industrial sector and strengthen its role in stimulating the national economy. By advancing the development and production of high-quality, value-added solutions, this initiative supports the UAE's vision of becoming a global leader in manufacturing and industrial excellence. Phase 1 of the enhancement programme will focus on upgrading EMSTEEL's existing rolling mills to enhance production capabilities. This includes the introduction of a new generation of high-strength rebars and advanced heavy-section products, significantly expanding EMSTEEL's product portfolio to cater to evolving market demands. Key innovation upgrades during this phase will include advanced shear systems to enable the production of high strength rebars for sustainable construction. This includes EMSTEEL's flagship ES600, ASTM Grade 80, and ASTM Grade 100 rebars, designed to improve structural integrity while reducing material usage. The advanced tensile properties of the ES600 contribute to decarbonising the construction industry by lowering steel consumption, reducing transportation emissions, and cutting overall carbon footprint. Phase 1 of the enhancement programme will also enable EMSTEEL to leverage state-of-the-art rolling mill technology to produce quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel. This ensures enhanced strength and resilience for demanding applications across high-rise buildings, large-scale infrastructure projects, and the multi-faceted web of assets available in today's energy sector. QST enhances steel toughness and wear resistance by using rapid cooling, improving its mechanical properties without compromising weldability, while TMCP optimises the steel's microstructure through controlled rolling and cooling, resulting in high strength, excellent weldability, and improved impact resistance which are critical for structures exposed to extreme loads and harsh environmental conditions. Phase 2 will include the installation of a new wire rod outlet with a capacity up to 500 KTPA, along with the upgrades of a cooling conveyor at existing rolling mills. These enhancements will enable the production of Value-Added (VA) and High-Value-Added (HVA) wire rods, as well as High Tensile Rebar in Coil. To support this expansion, EMSTEEL will also upgrade its steel melt shop with state-of-the-art VD technology and enhancements to billet casters, ensuring the production of high-carbon and special alloy billets required for the new product range. These investments support EMSTEEL's strategic shift from producing standard, commodity-grade steel to specialised, high-value products that offer enhanced strength, durability, and efficiency for critical applications. This transition not only strengthens customer retention but also positions EMSTEEL to capitalise on the growing regional demand for premium steel solutions. The GCC market currently relies on imports for VA-grade wire rod products, with demand expected to grow at a CAGR of 7-10% over the next decade. By overcoming existing mill limitations and expanding its product portfolio, EMSTEEL is poised to enhance its competitive positioning in key sectors, including infrastructure, energy, railways, industrial applications, petrochemicals, and automotive components. The enhancement project follows an ambitious timeline, with EMSTEEL's first rolling mill upgrade set for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027, further enhancing EMSTEEL's capabilities. Upon completion, this initiative will significantly strengthen the company's market position, expand its customer base, and drive additional EBITDA growth. Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said, 'As industries evolve and infrastructure projects grow more demanding, the need for higher-grade steel is becoming paramount. Without continuous investment in advanced steel solutions, manufacturers risk falling behind in a competitive global market. EMSTEEL's strategic transformation ensures that it stays ahead of industry trends, providing state-of-the-art materials that meet the growing needs of modern construction, energy, and industrial projects.' He added, 'We are not just enhancing our production capabilities; we are redefining industry standards and pioneering solutions that will shape the skylines of tomorrow. By investing in innovation and sustainability, we reaffirm our commitment to delivering world-class steel products that drive economic growth across the UAE and beyond.'
