Steel firm eyes Gulf expansion

EXPANSION PLAN: The boom in construction has created opportunities for Madar Holding.

A leading steel trader in the UAE has set its sights on expansion as it seeks to take advantage of the construction industry boom in the Gulf.

Madar Holding, a major supplier to the Dubai Metro development, is already operating at 80 per cent capacity at its processing plant in Dubai Investment Park - only 14 months after opening.

A subsidiary of the Saudi Arabian-owned Alfozan Group, since establishing in the region three years ago Madar has set up facilities in Qatar, Bahrain, Jordan, Syria and Sudan.

It is also partners in a plant in Saudi Arabia which is planned to be up and running by the end of the year.

In addition, it has three other hubs in the UAE for storage of steel.

But Sameh Hassan, CEO of Madar, said initially it would be concentrating on adding a second run at its Dubai plant to enable it to increase its current annual capacity of around 300,000 tonnes of steel.

The factory, which prepares rebar steel for the construction industry, features a cut and bend facility enabling straight steel bars to be cut to length and bent to shape, as well as a facility to make wire mesh used for concrete reinforcement.

The plant sources its reinforcement steel mainly from Turkey, Qatar, Saudi Arabia, China and Sudan.

Hassan said Madar was for the most part unaffected by the downturn in the global economy thanks to the UAE’s thriving construction industry.

“The boom is still here in the UAE,” Hassan said.  “The concern is in the US market but it affects us indirectly from Turkish exports, as the Turks can find better prices in the US for their steel.  But the Chinese are coming into the market and the Ukraine is available so it is not a concern.

“We are traders so we do look for the best product for our customers but there’s no scarcity of steel – there’s a lot of availability.

“Our mission is to deliver the best service for customers and 80 per cent of our orders are delivered within 24 hours.”

He said the rising price of raw materials like iron ore and scrap combined with increases in energy and freight costs, together with a surge in demand had led to the steep price hikes in steel this year.

Working with US-based MMFX Technologies Corporation, Madar is pioneering the supply of a type of “super steel” twice as strong as standard steel and five-times more resistant to corrosion, making it better suited to resist the Gulf’s corrosive soils.

Hassan said: “A service life of a structure is usually around 30-40 years before maintenance is required.  

“Studies proved that MMFX prolongs the service life of the structure before maintenance is required to around 100 years.

 “It’s good for high-rise apartments, waterfront and marine residences as it’s twice as strong as regular steel so you can use less.”

 Madar also trades in timber, electrical cables and construction tools.

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