Oman-based steelmaker Al Jazeera Steel Products Company has announced that its board of directors has approved a proposal to increase rebar production by upgrading the existing merchant bar mill. This upgrade will allow an additional annual production of 70,000 mt of rebar. The rebar facilities are expected to be ready for commercial production by mid-2014. The merchant bar mill is expected to be operational for 24 hours a day from the first half of 2014.
According to the company's financial results for the first quarter of 2013, Al Jazeera Steel has reported a net profit of OMR 1.39 million ($3.62 million), increasing by 23 percent compared to the corresponding quarter of the previous year. The company's sales revenues amounted to OMR 23.24 million ($60.4 million), down 15 percent year on year.
During the first quarter, Al Jazeera Steel's total production was 77,518 mt, increasing by one percent, while the sales volume decreased by six percent to 75,526 mt, both year on year. According to the company, the decrease in sales volume was mainly due to the continued sluggishness in most of the global industrialized zones and fierce competition and predatory dumping from foreign producers.
Al Jazeera Steel stated that the most Gulf Cooperation Council (GCC) governments have continued to announce significant spending on infrastructure and the company expects that this will reflect in demand for its products. The company added that its management is adopting a very cautious approach against any market downturns.