Today's Edition
SARA ALZAABI (ABU DHABI)
Emirates Steel Arkan (ESA), the UAE's leading steel and building materials manufacturer, SA reported revenues of Dh3.96 billion and EBITDA of Dh503 million, demonstrating stability despite the challenges posed by global uncertainties.
ESA uses the latest technologies to supply top-quality products to more than 70 countries around the world.
As a principal part of the UAE's "Operation 300 billion" strategy, ESA elevates local industries, creates jobs, and promotes sustainability, while also playing a role in iconic projects like the Burj Khalifa, according to the company.
Majority-owned by ADQ, a leading Abu Dhabi holding company, ESA is recognised for its dedication to decarbonisation and maintaining top safety standards.
Despite a 10% drop from Dh4.43 billion in H1 2023, the steel division still brought in Dh3.60 billion in revenue and Dh140 million in profit before tax, according to the company.
Meanwhile, the building materials division earned Dh353 million and achieved a profit before tax of Dh51 million.
Cost reduction strategies contributed Dh78 million to EBITDA, and the Group's cash reserves grew to Dh610 million, up from Dh426 million at the end of last year.
ESA was named the 2024 Steel Sustainability Champion by the World Steel Association and recognised by the World Economic Forum as among the top five decarbonised steel manufacturers.
The Group also took home the Best Sustainable Manufacturing Award and the ICV Excellence Award at the Make it in the Emirates Awards 2024, and was a finalist for the Excellence in Innovation Award.
Speaking to Aletihad, Eng. Saeed Ghumran Al Remeithi, Director and Group Chief Executive Officer, ESA, shared its strategies to maintain production levels and handle a 10% revenue drop from H1 2023 to H1 2024.
"We were able to sell our products effectively despite the international slowdown in consumption. This success is attributed to our strong local market and the robust economy in the UAE and GCC. Additionally, our strategy of diversifying our product range and focusing on high-margin, value-added products has helped us navigate these challenges."
He noted that the company adapts to market changes and concentrates on the local GCC market, where consumption is steady.
Al Remeithi highlighted the UAE's market agility and ability to adapt effectively as factors to the redirection of exports to the UAE.
"This is due to the strong, long-term relationships we have developed with partners in 70 countries around the world. At any given time, we can decide to shift from export to domestic markets, and we can adjust our output and production accordingly."
He added that the company's agility stems from its capability to produce steel across various standards, enabling operations anywhere and anytime.
He further explained that, in response to the growing need for high-grade steel, the company is continuously improving its assets.
With global markets increasingly favoring high-strength steel and distancing themselves from less advanced Chinese competition, the company remains dedicated to maintaining its lead.
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Regarding future goals, he said: "I would describe my outlook as cautiously optimistic. The global situation remains uncertain, particularly regarding developments in China. Additionally, we are seeing economic slowdowns in Europe and the United States. Consequently, we might experience some changes and improvements in various areas."
Al Remeithi stressed the importance of understanding consistent local market demand, monitoring sales trends, and remaining adaptable to shifts to direct production and sales appropriately.
