Gulf Construction Online - Conares signs $30m deals at Big 5 show

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Conares products struck a chord with visitors ... Bhatia.

Conares signs $30m deals at Big 5 show

01 January 2014

UAE-BASED Conares, a leading provider of downstream steel products in the region, signed deals worth $30 million during The Big 5 show.

The deals were signed with existing clients and amounts to around month and half of production, said Bharat Bhatia, CEO of Conares.

“We got a very different feel at the show this year. Last year, visitors were asking what is Conares, this year people are asking if they could buy from Conares. We saw many new customers this year and there was a very positive environment. We are very satisfied with the outcome of our presence this year,” he added.

Established in 2001, the Dubai-headquartered Conares has a diversified and full-fledged manufacturing facility at Jebel Ali Free Zone (Jafza). Centrally located in the UAE, Conares today is a premier provider of quality steel products for the wide-ranging needs in the region.

Conares’ installed capacity is 750,000 tonnes per annum, which will be expanded to one million tonnes by 2015.

“We plan to increase capacity by adding more machinery,” said Bhatia. “We are trying to enhance our existing facility first and will later add new products.”

Conares’ current combined plant utilisation is at 65 per cent, with pipe mill capacity at 40 per cent, galvanising capacity at 100 per cent and rebar capacity at 60 per cent.

The company is also considering further capacity increases for the galvanising mill as well as expanding the range of its pipe mill.

“We are leaders in the production of 8 mm to 40 mm rebar and half-inch to four-inch pipes and tubes. Conares has more than tripled its production capacity in the last 10 years and made strategic investments in Dubai, helping it expand its market share regionally,” said Bhatia.

Commenting on Conares’ performance last year, Bhatia said that the year was good but challenging and gave the company a turnover of almost the same levels of 2008.

“We managed to get into new markets and develop new supply chains, while still keeping to the basic balance of principles of conservatism and aggressiveness. Currently, the company exports are close to about 35 to 40 per cent of its production output. The volume of our production can be absorbed in the regional market when it picks up.

“Currently the local market (UAE) is doing well and confidence level has increased with Dubai getting Expo 2020,” he concluded.