Mabani Steel has responded to increased demand for multicoat systems with an expansion programme that has gone on for several months at its Ras Al Khaimah facilities in the UAE.

The company’s pre-engineered steel building (PEB) capacity is 96,000 tonnes per year for a single coat. In order to maintain its PEB capacity, Mabani installed a full second line complete with paint booths and VOC blow off and curing tunnels. The line can be operated independently as a single coat or linked with the first line enabling second and third coats to be applied completely online.

Additionally, another double CNC plasma heavy plate cutting station was installed and commissioned, further enhancing capacity to produce first quality heavy detail/connection plates.

This year a major capital expenditure project including the expansion of the hot rolled section processing building and installation of another complete Voortman heavy  structural beam line is under way, said Mabani Steel’s acting president Faisal Ishaque. The expansion, the commissioning of which is to be completed in the second quarter, includes additional fit and weld stations to complement the 100 per cent increase in hot-rolled fabrication capacity, said the official. The installation of a third paint line designed specifically for small, ship-loose parts (flange braces, clips, brackets etc) is currently underway and will be completed soon.

“By creating a dedicated line to paint small parts and removing this portion of the workload from the major lines, this new line enhances the capacity of the larger structural components’ lines,” said Ishaque.

In 2011 Mabani Steel produced to 65 per cent of capacity. A major portion of this, some 68 per cent, was shipped abroad. The exports were an increase of 10 per cent over the previous year and the company expects a similar increase in 2012.

Contracts

Mabani Steel has several PEB projects ongoing. It is setting up an 80,210 sq m  hay feed storage facility - Phase 2 in Al Faya, Abu Dhabi. Work will be completed in May.

It is also setting up a glass bottle processing plant and warehouse in Ras Al Khaimah. The work area is 33,610 sq m and the project is to be completed by June.

It has won a contract under the Ruwais Refinery Project for non-process buildings (EPC-6) in Abu Dhabi. The size of the construction Mabani Steel is working on is 18,580 sq m and work is in the design stage.

And in Dubai, Mabani Steel is involved with the Gulf Data Hub Centre, Dubai Silicon Oasis. It is setting up two buildings and the total work area is 7,210 sq m. Completion time is May or June.

Mabani Steel has several overseas contracts under implementation. In Qatar it is working on the Gulf Mall at Gharrafa in Doha. The size of the facility is 36,770 sq m and 90 per cent of the work was completed by mid-March.

In Bahrain it is working at a facility for manufacturing polyester film. The 29,330 sq m project will be completed by December.

Mabani Steel has been contracted for a pharmaceutical warehouse expansion in Ethiopia. Ishaque said work had not yet started. “We’ve had a number of jobs in Ethiopia where we see a lot of potential. We have a resident manager there,” he said.

The company is also working on a paper factory expansion in Dammam, Saudi Arabia. The 13,145 sq m facility will be completed by the end of May.

Last year, Mabani Steel completed several major projects including a parking shed for a 10 MW solar power pilot scheme at Saudi Aramco in Dhahran. The work area was 115,690 sq m.

Other completed projects in the UAE included warehouses for Borouge at the Khalifa Port and Industrial Zone in Taweela, Abu Dhabi. The work areas totalled 40,800 sq m.

The company also worked on rice processing plant facilities in Bishoftu and Gambela, Ethiopia (34,920 sq m) and on the Nestle Distribution Centre in Agbara Ogun, Nigeria (13,825 sq m).

In 2011 the company focused on energy efficiency and other environmental issues. “Product-wise we will introduce enhanced energy-efficient options to PEB designs targeting compliance to the rigorous requirements introduced in our UAE markets,” said Ishaque. “We fully endorse the need for increased efficiency and will provide guidance and approaches enabling customers and end-users to comply with these new regulations.”

Ishaque added that Mabani Steel has taken measures to reduce its carbon footprint by monitoring energy consumption at all its offices and factories and has acted responsibly with regards to production waste. He also pointed out that steel construction and PEBs in particular led the construction industry in recycled raw material content and that the segment required far less process water demand and had a better site safety record compared to concrete-based construction.

He said Mabini has enhanced its revenues by “listening to what the market wants or needs and closely examining what it costs to meet that need” and that it has enjoyed year-on-year growth.

Mabani Steel’s focus in 2012 will be on growth “by continued demonstration of its competiveness within the local market and abroad.”

“This growth is not a ‘volume at any cost’ strategy. Our growth is mindful of our obligations to the shareholders’ for a reasonable return on their investment,” Ishaque said. “We constantly review all aspects of our business, seeking ways to decrease costs and increase competitiveness without reducing service and quality levels.”

In comments about the PEB industry in the Gulf, Ishaque says it remains “extremely” competitive. 

“Although demand is showing signs of growth, overall market applications for PEBs have yet to return to pre-2008 levels. The supply/demand imbalance will continue to challenge all GCC PEB manufacturers.

“But the upside of this fierce competition does result in extremely competitive steel construction supply which will grow the PEB market share overall in this market,” he said.