Saudi Arabia-based United Gulf Steel (UGS), the largest sections producer in the Gulf Cooperation Council (GCC) countries, has issued its production results for the first half of 2008.
During the period in question, due to the growing demand in the Saudi Arabian domestic market as well as in the markets of the overall GCC region, UGS registered an 87.5 percent increase in its steel production to 216,954 mt and an 84.4 percent increase in its sales to 228,483 mt, both compared with the same period last year.
During the first six months of 2008, UGS' volume of sales to the domestic market increased by 84.6 percent year on year, amounting to 143,242 mt. The company's exports also increased year on year from 76,896 mt to 85,241 mt, including 56,065 mt exported to the GCC countries.
In order to meet the growing domestic demand for sections in both the domestic market and in the Arabian Gulf markets, UGS intends to set up a new mill for heavy sections with sizes of up to 600 mm and with a production capacity of up to 650,000 mt per year. Moreover, the company's new expansion project also includes the setting up of a 750,000 mt per year capacity melt shop based on the electric arc furnace (EAF) method for the production of billets, blooms and beams. This new expansion is expected to come on stream in 2010.