UAE-headquartered steel company Conares Metal Supply, located in the Jebel Ali Free Zone (JAFZA), announced last week that, despite the slump in the global steel industry, it is continuing with its US$70 million expansion plan, whereby the company expects to produce 500,000 metric tons of rebar per year. Conares Metal currently produces 200,000 metric tons of ERW pipes per year.
Commenting on the new facility, company managing director Bharat Bhatia stated, "The first phase of the new 100,000 square meter facility, located in JAFZA South, is almost completed and is expected to start its operations by the first quarter of 2010. The 40,000 square meter first phase will be able to produce 500,000 metric tons of rebar a year. With the addition of this capacity, the company's total production will reach 700,000 metric tons per year from its current annual capacity of 200,000 metric tons."
Commenting on the advantages that JAFZA provides to industries, Mr. Bhatia said, "It is important to mention that the logistical advantage we gain from being located in JAFZA is essential in making sure planned investments are made and that capacity is enhanced without hindrance."
Emphasizing the performance of the company that started its operations in JAFZA in 2000, Mr. Bhatia said, "We have reached a milestone with the construction of our new facility in JAFZA South Zone. This significant expansion plan is consistent with our strategy of not only strengthening our business but also extending it to new areas and markets."
Conares currently supplies its products mainly to the UAE, GCC, Africa, Pakistan, US and Canada.