Emirates Steel Arkan seeks opportunities in Asia and new markets

Emirates Steel Arkan, the largest publicly traded building materials company in the UAE, will focus on export opportunities in Asian countries and emerging markets this year, after it posted a healthy first-quarter profit following its merger.

“Good markets for us have been the US, Europe and the Far East,” Saeed Al Remeithi, group chief executive, told The National. “We are now looking for opportunities in Asian countries and in emerging economies.”

Net profit for the threemonths to the end of March climbed to Dh72.6 million ($19.7m), compared to Dh1.2m for the same period in 2021, the company said yesterday in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

Revenue jumped to Dh2.04 billion during the period, compared to Dh233.5m in 2021. About 90 per cent of revenue this year is expected to come from Emirates Steel. Arkan, which specialises in building materials, will contribute 10 per cent, the company said.

Emirates Steel completed its merger with Arkan Building Materials in the fourth quarter of 2021, to create an industrial group with assets of Dh13bn.

Emirates Steel supplies domestic and international markets with products such as wire rods, rebars, heavy sections and sheet piles.

The merged company’s exports represented 45 per cent of sales, while the balance was sold within the UAE, where the company has a 60 per cent market share.

While Emirates Steel has a strong international presence, the management is seeking to start exporting Arkan’s products this year, Mr Al Remeithi said.

There are plans to increase the steel production capacity beyond the current 3.5 million tonnes a year.

The company has a strong export network to Europe, but Mr Al Remeithi said there were no immediate plans to enter any new markets there to fill the gap left by Ukraine, a major steel exporter.