A SUSTAINED focus on boosting production and expanding into new markets has paid rich dividends at Zamil Steel Industries, which recorded its best-ever performance last year.

The global leader in design, manufacture and supply of pre-engineered steel buildings (PEB) registered a consolidated production of 450,000 tonnes last year, an increase of 18 per cent over 2007, while its exports increased by 20 per cent over the period.
“Last year was exceptional for business,” comments Hatem Turki, marketing manager for Zamil Steel, PEB unit, “and while we cannot hope to repeat that performance this year, we expect to register a moderate growth rate. We are optimistic of outperforming our counterparts, who are also faced with similar circumstances. This confidence stems from our belief in our organisation’s strength and strategic depth as an international player.”
Commenting on the measures being taken by the Saudi-based company in the face of the current financial scenario, he says: “The global downturn has certainly shrunk the market. So we have adapted our production to suit the current reduced demand, but without diminishing our capabilities to expand and return to full speed once markets recover.”
Zamil Steel has a healthy order book, which comprises a range of commercial and industrial projects. These include Yarmook Shopping Mall (which calls for the supply of 10,500 tonnes of steel buildings); a granules plant in Ras As Zawr (6,500 tonnes); a fibreglass plant in Yanbu; heat treatment buildings in Dammam; and control/equipment buildings in Jubail.
To enhance its service to the regional market, the company recently launched a new sandwich panel line at its facilities in the Second Industrial City in Dammam.
The company has also continued its quest for opportunities to enter new markets through a direct presence or through certified builders and agents. In this regard, Zamil Steel set up new production facilities in India and Vietnam last year, boosting the number of its overseas factories. It also has factories located in Egypt and the UAE.
The new production facilities in Pune, India, launched operation last November to cater to the demands of clients in the Indian and export markets. The state-of-the-art manufacturing facility, built over 87,000 sq m at a cost SR120 million ($32 million), is capable of producing 30,000 tonnes of PEBs and other steel products per year.
In April last year, Zamil Steel inaugurated its second factory in Vietnam, at the Amata Industrial Park near Ho Chi Minh City in southern Dong Nai Province. The new SR75-million factory boasts a capacity of 4,500 tonnes per month of PEBs and other steel products, increasing the total production of Zamil Steel Vietnam from 50,000 tonnes to 100,000 tonnes of steel buildings annually.
Established in 1977 in Dammam to design, manufacture and supply PEBs, Zamil Steel has grown from a local single-division company into a leader in the growing field of steel fabrication in Asia, Africa and Europe. The company’s sphere of activity has expanded to include design, manufacture and supply of conventional steel structures and process equipment, transmission and telecommunication towers, and open web steel joists and decking, which are produced by its affiliate Canam Asia.
Today, Zamil Steel boasts facilities that spread over a total area of 518,000 sq m, with the plant area covering 119,000 sq m. These facilities employ around 3,190 people, with more than 600 engineers in its engineering departments in Saudi Arabia, Jordan, Egypt, Vietnam and India.
The steel major has contributed to the construction of more than 50,000 buildings around the world that host a variety of facilities – factories, warehouses, workshops, aircraft hangars, commercial centres, hypermarkets, showrooms, exhibition centres, multi-function halls and low-rise non-residential steel buildings.
Zamil Steel has a long list of local and international customers, including some of the largest manufacturers and contractors. Some of these are Toyota, Honda, Nestle, Coca Cola, Proctor and Gamble, Fuji, Fijutsu, BP, Chevron, Saudi Aramco, the Royal Commission, Al Hokair, Saudi Oger, JGC, IHI, Mitsui, Mitsubishi, Daewoo, Hyundai, LG, Bechtel, Chiyoda Corporation, Toyo Engineering, Technip, Techint, Snamprogetti, ABB, SEC, STC, Etihad Etisalat and Emirates Electrical.
As an industry leader, Zamil Steel excels in engineering, manufacturing, sales and project management and offers clients a diverse range of products to compile a total building solution. The company utilises state-of-the-art engineering and manufacturing software and machinery in the design, estimating, shop detailing and manufacturing of each of its products.
Zamil Steel’s commitment to serve at the local level can be gauged from its extensive network of 56 area offices in 50 countries, which also export to 85 countries worldwide. These offices are equipped to provide quick, comprehensive response to customer inquiries, as well as extensive after-sales service. They provide clients with detailed quotations and proposal drawings as well as on-site support for ongoing projects. Zamil Steel also engages the services of a network of certified builders around the globe.
Zamil Steel is one of the diverse sector businesses of Zamil Industrial Investment Company (Zamil Industrial), and its flagship, the other major sectors being Zamil Air Conditioners, Zamil Glass Industries, Arabian Fiberglass Insulation Company (Afico), Ranco & Zamil Precast Concrete Industry and Acico for aerated concrete products.