Saudi Review

UGS operations in full swing

UGS ... full commercial operations launched.

United Gulf Steel (UGS) has launched full commercial operations of its medium-section steel rolling mill in Jubail Industrial City.

The world-scale facility, which began operations in July last year, is currently producing 15,000 tonnes a month, or 180,000 tonnes per year (tpy) of steel products - more than 40 per cent of its full capacity of 420,000 tpy.

UGS is now producing more than 100 different sizes of steel products to virtually any specifications, enabling it to supply end-users such as steel fabricators in the Kingdom and the adjacent Gulf markets, says a spokesman for the company.

''Despite an open market where dumping is widespread, UGS has been operating 24 hours a day, six days a week, with a workforce of 200,'' the spokesman says.

The mill, designed and built with state-of-the-art equipment and operational parameters, is the first of its kind in the Gulf, supplying the markets with section steel products which were hitherto being imported from various countries. The product range includes I-beams, angles, U-channels as well as flats, rounds and squares.

''Following a world-class start-up and commissioning period, the mill has shown that it is capable of delivering products of the highest quality to its customers,'' says the spokesman.

To mark the launch of full commercial operations, the company held an Open Day last month for its stockists to thank them for their support and to further strengthen their partnership.

''UGS, under the leadership and guidance of vice chairman and managing director, Mazen Allahiq Al-Noaimi, is committed to fulfilling a long-felt need in Saudi Arabia for locally-manufactured medium section steel products,'' he says.

A second phase of the project is envisioned, which is expected boost capacity to around 500,000 tpy.

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