CONARES, a premier producer provider of quality steel products including pipes and tubes, is planning to enhance its steel processing capacity to one million tonnes by 2015, to meet the anticipated increase in demand in the region.

Under the plan, the company will develop its existing diversified and full-fledged manufacturing facility in the UAE, which currently has a capacity of more than 750,000 tonnes per annum. The firm has more than tripled its production capacity in the last 10 years and made strategic investments in the Jebel Ali Free Zone (Jafza) that have helped it expand its market share regionally.

The only privately-owned company in the region with an investment worth more than $150 million in the steel industry, Conares is a leader in the production of 8 mm to 40 mm rebar, and pipes and tubes with diameters ranging from half to four inches. It currently commands about 30 per cent of the UAE market share.

“Conares is one of the region’s leading steel pipe producers, mostly catering to gas and water lines required for the construction sector as well as for structural industries,” says Bharat Bhatia, CEO of Conares, in an exclusive interview with Gulf Construction. “The company provides efficient services and fine quality products to its customers from its state-of-the-art manufacturing plant. We have the best available human resources, technology, infrastructure and materials.

“We are meeting the rising demand for steel pipes. Our cost-effective pipe products have gone through stringent quality assurance procedures. The products are CE approved, and recognised by the Dubai’s Civil Defence authority for sprinkler systems in high-rise buildings.”

Conares has emerged as a significant achiever in the region’s steel manufacturing industry within a short span of time. As an established leader in the downstream steel products sector, it has been recognised by a number of countries for exports, as it set new benchmarks in the steel processing industry. From its easily accessible central location in the UAE, Conares serves an extensive network of clientele including pre-engineering companies, steel trading companies and construction majors across wider markets.

The company has seen a 40 per cent growth in business in the first half of this year, says Bhatia, adding that he anticipates even greater demand as the firm ramps up production to meet market requirements.

“We are expecting a 100 per cent increase in production with the rising demand. We are already in the midst of crossing the 2008 figures of the top growth level,” says Bhatia, who attributes the increase to the buoyancy in the market.

Bhatia says that the string of new high-profile projects announced recently in Dubai signals that confidence has returned to the market, reflecting the growing strength of the emirate’s property and tourism sectors. This has subsequently accelerated the impetus in the steel industry with the surge in construction and real estate development activities since the beginning of this year.

“The positive vibes witnessed alongside the recent spate of announcements has boosted the business at Conares, when it comes to rebar and pipes as well as meeting the increasing demand for our supply chain. Conares, being one of the major steel manufacturers in the region, is likely to leverage the growing investment activity in the country with the new projects and further announcements over the course of the year,” he says.

He continues: “Since we focused on building our facilities during the financial crisis, we are now taking advantage of the upcoming projects. So far, the current year has been challenging, but has given us a turnover of almost the same levels of 2008. Our innovative approach to identify the niches, both in products and services, is the key to creating a competitive advantage. We typically follow the market trends, and ensure product availability in a timely manner.

“Our output will be absorbed in the regional market when it picks up and we are fully equipped to meet our supply chain requirements. We will not hesitate to increase and diversify our capacity as long as we see a market requirement for it,” he adds.

The company has already supplied to a number of ongoing projects, such as Dubai’s Road and Transport Authority’s (RTA) Al Sufouh Tram, Sharjah Electricity and Water Authority (Sewa), and developments at Jumeirah Beach Residence (JBR) and Business Bay, to name a few.

 Conares operates within the flat and long product segments of the steel industry with a huge requirement of raw materials, making it key for both the global and regional suppliers, and giving it a competitive advantage in the market.

“As the Middle East focuses on infrastructure development, Conares continues to serve as a prominent player meeting the growing industry requirements. The advantage of buying from us as a local producer will reduce the cost of inventory and the risk of price fluctuation,” Bhatia points out.

In terms of quality management, Conares has achieved the local Dubai Central Laboratory (DCL) certification, various global accreditations including UK Cares, Bureau of Indian Standards (BIS), Sri Lanka Standard Institute (SLS) and CEDD of Hong Kong, all for rebar; and CE-EU and UL-US, for tubes and pipes; as well as product approvals from Singapore and Pakistan.

“Conares is the only steel manufacturer in the UAE to have the BIS, Hong Kong and Sri Lankan certifications,” he stresses.

Apart from its immediate plans, Conares has a growth strategy to ensure its longevity in the market. “Our main focus is to stay in the supply chain of steel pipes and rebar to our domestic, regional and global clients. However, we plan to set up a couple of additional facilities in the coming three to five years. As the spate of recent announcements of in Dubai conveys a significant message, we will systematically drive forward our robust development strategy to meet the rising demand for the highest quality products in different industry verticals – all in line with our corporate tag line, ‘Let’s Steel Together’,” concludes Bhatia.

Conares has developed a strong foothold in a number of countries in the domestic, regional and global markets for exports including Saudi Arabia, Kuwait, Qatar, Bahrain and Oman in the GCC, the Mena region, the US, Canada, Latin America, Europe, Australia, Russia, Ethiopia, Hong Kong, Singapore, India and Sri Lanka, among others.