Al Shafar Steel Engineering has announced plans for a AED175 million ($47.6 million) expansion of its facilities located at Dubai Industrial Park.
The expansion, which will result in one of the largest steel manufacturing companies in the region, is geared to grow the company’s operational footprint in the UAE and the wider GCC region, Al Shafar said in a statement.
The company said it will add four new facilities spread over additional 1,200,000 square feet of land.
Construction is scheduled to begin in the second quarter of 2017, and the new facility is scheduled to start operations by the end of 2018, it added.
Al Shafar will invest AED100 million on the construction of facilities and AED75 million on installing new machinery. With 2,300 employees projected to work on-site, the factory will manufacture and fabricate ready-to-use products for delivery to local clients, with integrated facilities for warehousing, storage and offices.
Once the new facilities are commissioned towards end-2018, they will enable the company to increase its annual production value by approximately AED300 million in the first two years, with an annual growth of 15-20 percent in subsequent years.
This growth will add to its current annual production levels that stand between AED800 million and AED1 billion.
Amr Ali Ahmed, managing partner and CEO, said: “With the UAE’s steel manufacturing sector expected to grow to a robust 20 percent by 2021, a bigger factory shall place us in a superior position to contribute towards this growth. It will also help us achieve our long-term vision of expanding our footprint within the UAE and the GCC region.”