The UAE's second largest steel manufacturer RAK Steel is planning to invest $165 million to increase its plant capacity by 50 percent to 750,000 mt by the end of 2009. The expansion will come on stream almost a year late amidst the gradual recovery in steel prices after the crash experienced at the start of the year
The plant, which currently has an annual capacity of 500,000 mt of deformed steel reinforcement bars, expects the planned production capacity increase to further boost RAK Steel's presence in the UAE rebar market.
"The local capacity is still not enough to cater to the local demand. We're still importing from Turkey and other places," said RAK Steel CEO Ajay Aggarwal.
"The UAE is currently RAK Steel's primary market, while we also export products to Oman, Saudi Arabia, Bahrain, Qatar and Iran," Mr. Aggarwal added.
RAK Steel has also revealed its plans to become an integrated steel mill and has commissioned preliminary planning for the implementation of such an expansion initiative.
RAK Steel exports account for 15 percent of its production while the rest of its output is supplied to the domestic market.
RAK Steel produces deformed reinforcement bars with diameter ranging from 8 mm to 40 mm in variable lengths of 6 to 18 meters in British and American standards.