RAK Steel to raise output by 50 per cent

RAK Steel, a steel manufacturing facility and a joint venture with the Ras Al Khaimah Investment Authority (Rakia), has announced plans to increase the annual production of its deformed steel reinforcement bars by 50 per cent. A company statement said it is part of a long-term strategy to cater to the "gradual upturn in construction activities across the country".

"In about two years, we expect the construction market to get back to pre-2008 levels and thereafter maintain a growth trend of around five per cent," said Ajay Aggarwal, CEO, RAK Steel. Its current production figures stand at 500,000 tonnes and it hopes to reach the increase in target by end-2009. RAK Steel also revealed plans to become an integrated steel mill and has commissioned preliminary planning for the implementation of the expansion initiative.

"We believe that the entire country has managed to limit the impact of the global financial crisis through proactive government intervention and various forms of stimulus packages," he added. The UAE is currently RAK Steel's primary market, while it also exports its products to Oman, Saudi, Bahrain, Qatar and Iran.

 

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