Emirates Steel expands to add VAPs to portfolio

Emirates Steel has set the stage to further expand its global presence and add more value-added steels to its product basket. With better demand prospects and major expansion plans in the pipeline within the Middle East region, Emirates Steel – the UAE’s only integrated steel producer of long products – is now sharpening its focus on high-margin, high-strength value-added products (VAPs). The idea is to move from a commodity grade to high-value product grade, which is less volatile and less exposed to market impulses.
 
 
 

VAPs are mainly finished steel and are termed so depending on their treatment or their end use. The products vary from sheet piles to high silica wire rod to long steel bars to alloy steel. The end users are primarily the construction and fabrication sectors. “Consumers are shifting to premium steel as it guarantees optimum returns on their investment”, pointed out Emirates Steel’s CEO HE Saeed G Al Romaithi. This will eventually result in generating higher profit margins for the Senaat-owned steel company. “We have been closely observing the benefits large steel producers in the world are reaping by progressively moving into value-added products and we are hopeful that by adopting this model we will continue to protect our bottom line amid the current challenging industry circumstances”, said Al Romaithi.

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