By: Amr Adel

Dubai – Mubasher: Conares Steel is planning to invest AED 200 million in the UAE over the next three years in order to increase its annual production capacity and add a new production line, said CEO Bharat Bhatia.

The first target of the investment will be AED 100 million in the next 12 months to boost steel pipe production by 250,000 tonnes by the fourth quarter of 2015, Bhatia told journalists late Sunday on the sidelines of a Conares celebration.

The expansion aims to meet growing demand in the local market, owing to ongoing infrastructure projects and preparations in Dubai for the Expo 2020 as well as exploring export opportunities, he said.

Specialised in steel products and based in the Jebel Ali Free Zone (JAFZA) in Dubai, Conares Steel is the second-largest steel producer in the UAE with an annual production capacity of 750,000 tonnes, of which 500,000 tonnes are rebars and 250,000 tonnes are steel pipes.

Bhatia said Conares releases around 75% of its total production to the UAE market, while the remainder is exported to the GCC and global markets.

Conares’ has a 20% stake in the total UAE market, but has plans to increase its stake to 40% by the end of the year, once the expansions are complete, Bhatia said.

The company’s total revenues amount to AED 1 billion per year, Bhatia said, adding that the AED 200 million-investment represents support to its manufacturing capabilities as part of its strategy and vision until 2020.

Conares Steel covers around 25% of the GCC market’s needs for steel pipes.

Bhatia also revealed that his company is currently seeking to find partners in India in order to benefit from the growing prosperity of the Indian market.

Conares is exploring available export opportunities in India to meet the varied demand of industrial products and sectors in the UAE, he added.

Translated by: Nada Adel Sobhi