ROOTS Steel International Company (Roots Steel Group) has acquired two Sharjah-based companies – Ginco Steel and Polyco Company, both wholly-owned subsidiaries of Bank of Sharjah.

Roots Steel Systems executive director Osama Fansa (left) and Bank of Sharjah executive director and general manager Varouj Nerguizian after signing the deal.

The acquisition is part of an aggressive expansion strategy in the region by Roots Steel Group, a leading Saudi Arabia-based manufacturer of pre-engineered metal building systems.

“Roots Steel Group aims to be the leading player in the metal building and structural steel industries in the region,” said Mahmoud Mustapha, managing director of Roots Steel Group. “The acquisition of Ginco Steel and Polyco complements our expansion strategy in the region, and will allow us to meet our operational requirements and growth demands more efficiently.”

Roots Steel engages in the design, engineering, project management, manufacturing, sale, erection, and after-sales service of pre-engineered building systems (PEBs) in Saudi Arabia, the UAE, Syria, and Egypt.

Headquartered in Jeddah, Saudi Arabia, the company offers customised metal building systems and components for industrial, commercial, and institutional applications.

Ginco Steel, established in 1975, is an ISO 9001:2008-certified structural steel company based in the Sharjah Industrial Area. Its core activities include design, production, sales and erection of steel structures for high-end oil and gas, infrastructure, industrial, commercial and other projects.

Polyco, established in 1982 and also an ISO 9001:2008 company, specialises in design, production, sales and erection of conveying systems for the mining, industrial and food industries. It also manufactures and supplies various types of oil field cabins.

Following the acquisition of Ginco Steel and Polyco, Roots Steel Group is stepping up its expansion initiatives further with the establishment of a new plant in Egypt, which will be inaugurated by May 2011.

Another new plant facility in Bahra near Jeddah is expected to be operational by mid-2012.

The group is targeting a combined production capacity of 300,000 tonnes per year from all its plants, covering the Middle East, Africa and Asia, Mustapha said.