Emirates Steel sees 2017 revenue grow by 22% to $1.8bn
The company's production also logged an increased, going up to more than 2.9 million tonnes by the end of 2017, from 2.8 million tonnes in 2016
Emirates Steel recorded $1.8bn (AED6.6bn) in revenues in 2017, 22% higher compared to $1.5bn (AED5.4bn) in 2016.
According to the subsidiary of the General Holding Corporation (Senaat), its production also logged an increase, going up to more than 2.9 million tonnes by the end of 2017, from 2.8 million tonnes in 2016.
Its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin in 2017 was at 12%, the company added.
HE Engineer Saeed Ghumran Al Remeithi, chief executive officer of Emirates Steel, commented: “The positive results achieved by Emirates Steel in 2017 clearly indicate success of the company’s resilient business model, despite the challenges faced by the metals and steel industry globally.
“We will continue to increase sales revenues and reduce direct and indirect costs to further improve the company's financial performance. This will be achieved by increasing volumes, driving efficiencies, and further developing our product range to achieve our production capacity of 3.2 million tonnes per year, raising safety standards and entering new markets to further expand our global footprint.”
Emirates Steel said in a statement that a recently developed scrap shredding facility will support its aim of increasing the operational efficiency of its electric arc furnaces.
The facility is also expected to play a role in the recycling of scrap metal in the UAE, as well as reducing operating costs and increasing flexibility for the primary feedstock used by the company.
Last year also saw the UAE-headquartered company develop a twin-casting system, reportedly the first of its kind in the country.
“Emirates Steel continues to focus on manufacturing […] steel products to meet the needs of a growing construction market and the huge infrastructure projects ongoing in the UAE and the GCC,” said Al Remeithi.
“We will rely heavily on the heavy sections mill when implementing our expansion strategy, further targeting new markets.
“In addition, the company has continued to produce rebar and increase its production to 2 million tonnes per annum in 2017, compared to 1.9 million tonnes per annum in 2016.”