Conares, a UAE-based manufacturer of steel pipes and rebar, returns to The Big 5 show this month to leverage the opportunities in the regional market and showcase its innovative products such as galvanised rebar, in line with the industry’s pursuit towards sustainable construction.
“We have been exhibiting in the previous editions of The Big 5 show and it has been a remarkable experience indeed,” says Bharat Bhatia, CEO of Conares.
“We have received overwhelming response from potential customers and serious buyers from different parts of the world and are very pleased to be part of the show once again. The wonderful exposure that our brand receives out there is extremely beneficial for us.”
“Our participation this year would be in line with our efforts to extend our market presence with a range of products,” he says.
Focusing on sustainable infrastructure development, Conares has introduced galvanised rebar, a first-of-its-kind sustainable approach in the Middle East region towards infrastructure development.
“With this new approach in corrosion protection for steel reinforcement in concrete, Conares joins the global sustainability efforts to address the issue of corrosion that adversely affects the sustainability of the construction industry,” Bhatia notes.
“The new system will bring an evolution in the tools and techniques of the industry. Galvanising rebar is a process that has been widely adopted in key developed countries focused towards sustainability and building lifecycles,” he adds.
The second largest private steel manufacturer in the region, Conares was established in 1988 in Jebel Ali Free Zone (Jafz) and employs a staff of more than 500. The company is in the midst of an expansion and has earmarked an additional Dh200 million ($54.45 million) of investments at its facility in the next five years, in line with its ambitions to be a one-million-tonne steel manufacturer.
Its 1.5-million-sq-ft Jafz facility has an annual manufacturing capacity of 500,000 tonnes of steel rebar, nearly 85 per cent of which is destined for the local market and the remaining for the regional market. It also produces 250,000 tonnes of steel pipes per year and is poised to double this capacity by end of Q1, 2016. Some 65 per cent of its steel pipe output is currently sold in the local market, 20 per cent is exported to the region and the remaining 15 per cent is for the global market.
“With the lined expansions, the responsibility has always been to deliver. We are on track with the new pipe mill, whose foundations are complete. We expect trials by the end of this year, keeping us geared to deliver towards the end of Q1, 2016. Once operational, we hope to achieve maximum utilisation of our production capacities,” Bhatia says.
The CEO says the company is joining Dubai’s efforts in hosting the World Expo 2020, which has further increased the demand for steel for the future. It aims to cater to the increased rebar requirements, keeping in mind the possible developments that will take shape.
“If these positive developments fall into place, we can say that the local demand can conservatively grow at single digits,”
“The expansion is aimed at serving the domestic market as well as exploring export opportunities,” he continues. “This would help us meet the demand for infrastructure developmental activities ongoing in Dubai to prepare for hosting Expo 2020. The rapidly growing demand for the construction material including iron and steel opens huge opportunities for Conares not only in the UAE but the entire region that Jafza as a hub serves.
Once the expansion programme is completed, Conares intends to diversify its product portfolio, which is backed by future expansions.
The company has more than tripled its production capacity in the last 10 years and made strategic investments in Jafza that have helped it expand its market share regionally. Its products and plant have achieved a number of major global certifications and recognitions which have been accepted across regional projects.
“Keeping the vision of the UAE and Dubai 2021 in mind, we expect to multiply our revenues to exceed the Dh2-billion ($544.55 million) mark. In terms of facility growth, we are aligning Conares with the region’s commitment to infrastructure developments. The Vision 2021 for Conares is crucial to make it a manufacturing powerhouse,” he concludes.
Conares can be visited at A161, Saeed 1.