Makah-based Al- Ittefaq Steel Products Company, a division of Saudi Arabian Al-Tuwairqi Holding has recorded 15 percent growth in its sales during the first seven months of the current year compared to the same period during year 2008.
As per a statement released by Al- Tuwairqi, in the period in question, total sales volume of Al-Ittefaq exceeded one million mt with a turnover value of SAR 2.5 billion compared to the sales figures of the previous year.
Commenting on the issue, Al-Tuwairqi Holding board member and commercial director Eng. Faisal Haddawi said, "The optimum results were achieved despite the international economic crisis and slowdown in international steel market, which are now showing prospective signs of economic reform."
Mr. Haddavi attributed the growth in sales to diverse customer base in local market and strong distribution channels throughout the Kingdom, equally supported by their high quality and competitive product. Furthermore, the consumption volume for the reinforcement steel in the Saudi market is estimated at six million mt percent with one thirds of the market share engrossed by Al-Ittefaq Steel.
In addition, Mr. Haddawi noticed that the last four months witnessed increase in building contracts in exception to the government and private projects, despite the usually anticipated calm market during Ramadan season.
On the other hand, the statement has also confirmed that Al-Tuwairqi Holding is all set to increase the production output in 2010 with the support and coordination of the ministry of commerce and industry to become one of the largest steel group in the Arabian market, with the commencing of their new plant "Arab Steel" which composed of Pelletization Plant, DRI Plant and Steel Billet Melt Shop of two million mt capacity, grossing total production capacity at 5.4 million mt per year.
Steel consumption in the Saudi Arabian domestic market stands at 4.5 million mt in 2007 and 4.4 million mt in 2008, with an estimated demand in 2009 reaching six million mt.
Al-Ittifaq Steel is considered as one of the biggest privately owned steel company in the Arab Gulf region. In addition, it is the only fully-integrated steel industry which has facilities to produce from basic raw material to finished products of reinforcement steel and cut & bend products.