Al-Tuwairqi Group of Companies, ranked 34th among the top 100 companies of Saudi Arabia in 2006 and ranked second among the fastest growing Saudi Arabian companies in 2005, today has rolling mills running at a total capacity of 2.6 million tons, melt shops at a total capacity of 1.8 million tons and DRI production at 1.5 million tons per year. The group also has manufacturing facilities in the Middle East and the UK.
The current priority of the group is diversification to other areas of steel production. According to Al-Tuwairqi Group technical director Mr. Sudarshan Singh, steel producers in the Middle East need to reduce costs and diversify in favor of more value added production. In this way, they will be in a position to compete with the Chinese and Russian steel mills, who will eventually be their competitors in the export markets. Al-Tuwairqi Group has already made plans for diversification in the fields of special steels, seamless pipes, heavy beams and rails, and also in flat rolled production including HRC, CRC, HDG and color coated.
The population growth in Africa, Latin America and Asia - regions that are rich in natural resources - may be seen as an opportunity for the world steel industry. Looking at the current world figures for iron ore and steel, while 67 percent of the iron ore market is controlled by the top five iron ore producers, only 19 percent of steel production is controlled by the top five steel producers. Therefore, more consolidation is necessary for a more stable and sustainable steel industry.
Mr. Singh stated that Al-Tuwairqi Group is planning expansion and diversification particularly in the Middle East due to the cost advantages of the region as regards fuel, power, natural gas and labor. In an environment of economic boom and tax free business, Al-Tuwairqi Group is enhancing its manufacturing capacity in the region.
The strong and healthy condition of the petrochemical, power, construction and transport sectors is the key indicator of a firm demand for steel in the Middle East. The region's rich mineral resources, plentiful labor force and long coastal lines can be expected to prove advantageous to both the Middle Eastern and Asian steel industries as they expand their roles in the world steel market.