

Qatar Steel has just commissioned a new bar rolling mill in Qatar as work progresses rapidly on another bar mill at its facilities in Dubai which is slated for completion early next year.
The projects are part of the expansion plans of this pioneering steel major which recently ushered in a new era for the company with the launch of its new brand identity – as Qatar Steel replacing the former ‘Qasco’.
The launch of a new look, values and vision for Qatar Steel is in keeping with the company’s aim to be at the forefront of the Gulf's construction industry and increase its competitiveness in the region.
However, judging by its new-found dynamism, the company now looks likely to expand capacity even further to meet the surging demand set by the Gulf’s booming construction sector.
“The new rolling mill in Qatar will double our production capacity from 750,000 tonnes per year (tpy) to 1.5 million tpy,” Mohammed Al Saadi, Marketing Manager tells Gulf Construction.
In an effort to meet the growing demand for steel in Qatar and across the Gulf, Qatar Steel is making huge strides in steel production. Its technically-advanced expansion projects have been designed to produce world-class products and help make the company’s presence felt on the steel map of the world. In line with its growth, the company is also enhancing its facilities and customer services while expanding its chain of distributors.
The latest rolling technology is being deployed in the new bar mill, which is said to be the first of the new generation of plants in the Gulf.
“Our expansion projects are in full swing and will bring our annual production of DRI (direct reduced iron) to 2.3 million tonnes, molten steel production to over 1.5 million tonnes and rebar to over 1.5 million tonnes in Qatar. Similarly, substantial investments have been made in Dubai to increase production of existing wire rod mill from 180,000 tonnes to 240,000 tonnes and rebar from 50,000 tonnes to 300,000 tonnes through the installation of a new bar mill," says Sheikh Nasser bin Hamad Al Thani, director and general manager.
Founded in 1974, Qatar Steel was the Gulf region’s first integrated steel plant, which began commercial steel production in 1978 and became wholly owned by the Government of Qatar in 1997.
Today, Qatar Steel is widely recognised as a leader in the steel industry. Its plant and offices in Qatar occupies an area of 707,000 sq m with a further area of 375,000 sq m already reserved for future development and expansion.
“Through the promise of making steel matter, Qatar Steel will continue to strive not only to maintain but enhance its reputation by a process of continuous improvement in every area of its operations,” Sheikh Nasser adds.
The plant, located in Mesaieed Industrial City, south of Doha, is an integrated facility – a “four-in-one” as Al Saadi describes it – comprising a direct reduction (DR) plant including a Midrex process-based DRI/HBI combo mega module, a melting shop featuring electric arc furnaces and a ladle refining furnace, continuous casting facility and rolling mills. It incorporates the latest in automated features, a well-equipped jetty and quality control laboratories.
The plant produces bar in diameters ranging from 10 to 25 mm for plain bars and 10 to 40 mm for deformed bars in international standard lengths of 12 m. The Mesaieed facility also produces steel billets at its casting plant, which are consumed by its rolling mill and also sold to other facilities if there is a surplus.
Its facilities in Dubai- Qatar Steel Company FZE, formerly Qasco Dubai Steel FZE – were established in August 2003 to meet the growing demand for high quality steel wire rod products within the GCC as well as in international markets. The company operates two primary facilities at its 60,000 sq m site in the Jebel Ali Free Zone (Jafz): an upgraded wire rod mill with an installed capacity of 240,000 tpy and a rebar mill with an annual capacity of 50,000 tonnes of rebar. By January next year, the latter is soon to be replaced by an advanced new bar mill with a 300,000 tonnes capacity of deformed bars in diameters ranging from 8 to 40 mm in 12 m straight lengths. The plant produces wire rod coils in diameters ranging from 5.5 mm to 11 mm as well as rebar in coils. The facility also includes a cut-and-bend factory.
The company recently made a major impact at gulfBID, where it was adjudged to have put up the best stand at the region's leading international exhibition for construction, interiors and furniture.
“gulfBID 2007 was a great success and it is an added bonus to receive the Best Stand Design award this year. It is rewarding to be recognised for our efforts in light of our recent re-branding,” says Al Saadi.
Qatar Steel is planning a permanent presence in Bahrain, after recently buying a 25 per cent stake in the local Gulf Industrial Investment Company (GIIC). GIIC, which supplies iron ore pellets to the steel manufacturing industry in the Gulf, has launched plans to more than double production to 11 million tonnes a year. Estimated at more than $570 million, the project will be one of the biggest industrial schemes undertaken in the Gulf and will make Bahrain the main supplier to the Gulf steel industry.
Commenting on Qatar Steel’s home market, Al Saadi says: “Five years ago, the Qatar market absorbed about 25 per cent of our output, which was the country’s total requirement. Today, it accounts for 80 per cent of our output and we expect that the demand would soon exceed even the output of our expanded facility. Our priority lies with supplying the Qatar market, as we are the only steel mill there.”
In Qatar, its products are being used for a number of prestigious projects including the various phases of the New Doha International Airport, the Islamic Art Museum, the 25-storey Reem Tower, the 52-storey twin Marriott Towers, the 20-storey Tower A at The Pearl-Qatar, and 154 luxury villas at Al Waab City in Doha.
“The boom in the GCC region’s construction industry has fuelled a resulting surge in the demand for construction material and expertise. The Gulf’s construction industry is expected to grow to a value of $9.2 billion this year alone. The construction boom is pushing all manufacturers to try to cope with the demand. Over the next five years, we are talking about trillions of dollars being invested on projects,” says Al Saadi.
As the construction industry battles with the shortage of raw materials such as steel and concrete, spiralling prices is another aspect that the industry has to factor in as the cost of rebar has leapt by close to 50 per cent over the past three years.
Being an integrated mill, Qatar Steel enjoys the advantages of economies of scale and having a control on aspects such as energy consumption and tries to pass on the cost benefits to its customers, he says. It also ensures prompt delivery of materials – within 40 days of receipt of order, according to Al Saadi.
Apart from its domestic market, the company supplies to the UAE, Bahrain, Oman, Kuwait and Saudi Arabian markets. Sales to these countries are coordinated directly from the Doha office, with its representatives regularly visiting them on a monthly basis, he says.
The firm also offers fusion-bonded epoxy coated rebar (FEBCR) through its sister company Q-Coat, which is managed by Ali Al Muraikhi, who is manager of the commercial division of Qatar Steel.
Consistent with its focus on quality assurance, rebar produced in Mesaieed and Dubai have received several quality accreditations recognised by the industry, including UK Cares certification.
Qatar Steel employs a total workforce of around 1,650 people, comprising 12 nationalities.