Construction Week reported that Emirates Steel Industries is seeking to expand its market share in Iraq to take advantage of what it says is a substantial improvement in the investment climate.
The firm which is wholly owned by the Abu Dhabi government also cited huge demand for steel as a result of the burgeoning reconstruction efforts across the country as a reason for its push into the country.
Mr Hassan Sha’sha’a strategy and development vice president of ESI said that “The investment atmosphere in Iraq has improved substantially and you find a lot of local investment.”
He added that “Local businessmen and local government officials and departments are all investing in Iraq and a lot of the development projects are just getting starting.”
Mr Sha’sha’a further added that “Demand for steel in Iraq was in excess of 4 million tonnes per year which was currently being met by the Ukraine and Turkey. This compares against demand in the UAE which is currently 3.5 million tonnes to 4 million tonnes for rebar and 700,000 tonnes for wire rod.”
Mr Sha’sha’a said “The time is ripe for ESI to further its reach into the Iraq reconstruction market. We have learnt that certain steel products are getting a premium over there, so now that we have introduced our steel into Iraq, we will be competing there.”
ESI which produces rebar and wire rod, has a production capacity of two million tonnes per year after completing phase one of a USD 2.45 billion expansion plan last month.