Steel rebars manufacturer Universal Rolling (Unirol) has announced it is looking at diversifying into the production of steel billets at its plant in the Hidd Industrial Area.

“We’re currently discussing the possibility of entering a new joint venture for the production of steel billets,” Unirol managing director Mazen Al Mahroos told Gulf Industry without giving details. The company currently sources steel billets from Europe and the GCC region.

“Plans are being considered to vertically integrate the company – both upstream and downstream – to the full advantage of the steel reinforcement cycle,” Al Mahroos said.

Unirol makes steel reinforcement bars ranging from 8 mm to 32 mm in diameter with a production capacity of 200,000 tonnes per year at its highly automated rolling mill. The company reported it increased productivity by introducing slit rolling for smaller diameters.

Al Mahroos said in mid-December Unirol was anticipating a 2011 turnover of $120 million.

Bahrain demand down

“Demand from Bahrain went down a little in 2011 because of stoppage of some projects and delays in the announcement of new projects, but we observed that the market started to recover strength by Q4,” Al Mahroos said. The official added that some GCC countries had acquired sizable quantities of its product during 2011. Discussing prospects, he said demand was expected to grow rapidly in the GCC region especially in Qatar where preparations would be made for the 2022 Fifa World Cup.

“We’re targeting the Gulf market as a new manufacturer and want to make this known to as many potential customers as possible. We’re entering as a small but high-end quality producer with a focus on stringent quality control norms and a highly specialised level of service,” said Al Mahroos.

“Each country in the GCC has its unique prospects. Saudi Arabia, in our opinion, will be the main driving force in the region in terms of construction and infrastructure development. However, Qatar and Abu Dhabi are among the strongest growth markets followed by Kuwait and Bahrain.

“Bahrain is expected to see realistic but sustainable growth in the construction sector over the next 7 to 10 years.”

The company has been operational only since 2009 but has participated in many completed and ongoing projects for major contractors including hotels, high-rise buildings, private housing projects, commercial buildings and embassies. Its rebars have also been used in the construction of public projects such as health centres, schools and highway bridges.

Unirol highlights it undertakes regular testing right from the production stage until dispatch and this process is supported by its customer care and after-sales services. An in-house laboratory is equipped to test for tensile strength, chemical composition and bending and re-bending parameters as per standards.

The steel rebars it makes are quenched using thermo-mechanical treatment which provides superior metallurgical properties and helps prevent corrosion. Unirol’s products conform to British (BS4449) and US (ASTM A615) standards and are certified by a number of agencies and clients, including TUV for ISO 9001:2008 and Bahrain’s works and housing ministries. Additionally it possesses the UK Cares product certification.