ARAFT of international certifications and awards has underscored Emirates Steel’s position as a quality steel manufacturer that meets global standards in product quality as well as adheres to the latest industry regulations for health, safety and the environment.

Emirates Steel, the only integrated steel producer in the UAE, recently won the Gold SAP Quality Award for Europe, the Middle East and Africa (EMEA) a month after winning the Middle East and North Africa (Mena) SAP Gold Quality Award for best implementation in 2008-2009. Emirates Steel’s SAP programme, which is already delivering savings and business benefits, was recognised at a recent SAP awards ceremony, held in Frankfurt, Germany.
Competing against more than 150 companies from 13 market regions across Europe, the Middle East and Africa for the prestigious award in three different categories, Emirates Steel captured the prize in the small and mid-size enterprise implementation category.
The company has also recently been certified to manufacture Grade B500B rebar and coil conforming to BS 4449:2005 by the UK Certification Authority for Reinforcing Steels (Cares).  It has also been certified as a quality manufacturer and supplier of products conforming to BS 4449:1997 Grade 460B. The company now operates a quality system, which complies with the requirements of BS EN ISO 9001:2008 and the relevant Cares quality and operations assessment schedules.

In addition, earlier this year, the Higher Corporation for Specialized Economic Zones (ZonesCorp) certified Emirates Steel’s environment, health and safety management system (EHSMS) for its compliance with the Abu Dhabi industrial sector regulatory codes of practice. The company is one of the first few ‘Category 3’ businesses to receive such accreditation in the first year of EHSMS implementation in the emirate’s industrial sector.

Expansion
Buoyed by the recognition it has received in the market and the demand for its services, Emirates Steel is implementing a comprehensive business development plan to progress from being the only integrated steel producer in the UAE to being one of the largest and most competitive steel producers in the GCC.
“We will be among the very few regional steel producers with a diversified product range, including rebar, coil, wire rod and semi-finished products, such as billets and direct reduced iron,” says Gregor Münstermann, the company’s CEO.
By 2012, Emirates Steel will add medium and heavy-sections capacity to its product range.
The company launched the first phase of the expansion programme in January 2006. Completed in June last year at a cost of around Dh3 billion ($810 million), the first phase expansion has transformed Emirates Steel from a simple steel re-roller to the first fully-integrated steel manufacturer in the UAE and significantly increased the company’s rolling capacity to 2 million tonnes per year (tpy). It involved the purchase and construction of a 1.6-million-tpy direct reduction plant, a 1.4-million-tpy steel melt plant, a 0.62 million-tpy rebar rolling mill, a 0.48-million-tpy wire rod and coil rolling mill, together with associated infrastructure and facilities.
The second stage of expansion – launched in February 2008 – is being executed in two stages: 2A comprises a 1.6-million-tpy direct reduction plant, 1.4-million-tpy steel melt plant and associated infrastructure and facilities and 2B (launched last November) entails a 1-million-tpy heavy-sections rolling mill.
Engineering and civil works commenced in June 2008 on the $1.5-billion Phase Two, which is scheduled for completion in 2012. 
“The Phase Two direct reduction plant and steel melt plant, which are expected to be completed one year ahead of schedule, are sister plants to the Phase One assets, thereby significantly reducing the associated technology and construction risks and providing significant synergies to the company in terms of the learning curve on commissioning, the required maintenance crews, and maintenance spares,” says Münstermann.
Commenting on the company’s other expansion strategies and future plans, he says: “As part of its short to medium-term plans, Emirates Steel will expand its product sales to include the GCC and other global markets. While the majority of output is intended for the UAE and the rest of the GCC, the company is looking at the Mena region, East Africa, Europe, North America and Canada, the Indian sub-continent, and other Asian markets for exports.”
Emirates Steel currently sells around 80 per cent of its products to the local markets, with the rest being exported to countries such as Jordan, Saudi Arabia, Kuwait, Oman, India, China, the Far East and Pakistan.
In the medium term, exports will be largely confined to wire rod and coil. Emirates Steel will export more than 50 per cent of its wire rod and coil products by 2011, whilst only 15 per cent of rebar output will be exported. On the commissioning of the steel sections mill, further export opportunities will be targeted, making the company a truly international player.
Over the next few years, the firm also plans to progressively develop and equip its sales team with the necessary skills to increase sales volumes in all sectors, including the domestic and export markets, commodity and project stockists, direct project, and the ultimate end-user.
Emirates Steel is optimistic about its future prospects in the local, as well as regional markets. With a market share of between 50 to 60 per cent of rebar and wire rod in the UAE, the company says it is well placed for growth in the local market. For further growth, Emirates Steel is also considering a number of potential greenfield investment opportunities and acquisitions.
Some of the projects the company has been involved with include Emirates Palace Hotel in Abu Dhabi, Dubai Airport expansion project, Dubai Marina Towers, Shangri La Hotel in Dubai, and water and power projects in Sharjah and Fujairah, all in the UAE; and the Four Seasons Doha in Qatar, amongst others.