Zamil Steel, a key player in the global pre-engineered steel buildings (PEBs) industry, is aiming to increase its market share in the existing markets, in addition to exploring new territories of potential business worldwide. 

“We are always evaluating opportunities for entering into new markets through a direct presence, or through certified builders and agents,” says Mohammed Al Sahib, director – Zamil Steel BPG.

With several ongoing projects within Saudi Arabia and overseas, Zamil Steel’s market position as a leading player of PEBs and related services remains strong.

The company says it has faced an increase in demand and order bookings from the GCC region, especially Saudi Arabia, which has resulted in a large increase in its order intake.

“As an industry leader, we maintained our market share by continuously excelling in engineering, manufacturing, sales and project management and offering clients a diverse range of products, thus offering total building solution packages,” says Al Sahib. 

FINANCIAL BOOST

Zamil Steel, which has 54 sales offices spread all over the world and a wide network of certificated builders around the globe, has already received a boost to its financials despite the current challenging business market.  
 

Al Sahib: `we maintain our market share by continuously excelling in engineering, manufacturing and sales’

The company, according to Al Sahib, has in the first half (H1) of 2016 notched up a turnover of $90 million from its Saudi facilities alone while from its overseas operations, the turnover touched over $230 million.

During the year 2015, the Saudi operations contributed a turnover of more than $190 million, albeit down marginally by 4.1 per cent as compared to $199 million turnover achieved in 2014. Al Sahib attributes the decline in turnover in 2015 to the reduction in selling prices due to the fall in global steel prices.

Steel is one of the main components used in PEBs and directly affects the cost of construction. This raw material accounts for 55 to 60 per cent of the overall cost of PEBs. In fact, market analysts say that one challenge that could curtail market growth of the PEBs is the fluctuating raw material prices. Other components that affect the overall cost of PEBs include cement for making floors and paint. Even a slight change in the cost of these raw materials directly affects the price of PEBs.

Zamil Steel’s PEB factories in Saudi Arabia have a total installed capacity to produce around 72,000 tonnes of steel building and steel structures per year. However, the actual production in the year 2015 was approximately 53,000 tonnes, informs Al Sahib. 

For Zamil Steel, factories accounted for most business in 2015 out of the various sectors it serves such as warehousing, commercial establishments, and factories.  The company’s PEB plants are located at Dammam in Saudi Arabia; Ras Al Khaimah in the UAE; Pune in India; 6th of October City and Sadat City in Egypt; and Hanoi and Amata in Dong Nai in Vietnam.

 

PRESTIGIOUS PROJECTS 

Zamil Steel has been busy with many important PEB projects both in Saudi Arabia and overseas.  Al Sahib provided examples of several ongoing projects including the SR21 million ($5.6 million) Reliability and Efficiency Centre for Schlumberger Middle East in Dammam, Saudi Arabia, which is being built through Arnaout Contracting and will be completed by November this year.

It is also currently building a factory building for Al Qahtani Pipe Factory in Dammam, Saudi Arabia through Othman Saleh Al Ghamdi Contracting Est. The value of the project is SR17.5 million and will be completed by December. Zamil Steel is also building a SR13.6 million factory building for the United Carton Industries Co (UCIC) at Al Kharj in Saudi Arabia. It will complete the project by the end of November. 

The company has completed several prestigious projects recently in Saudi Arabia including a warehouse building (SR20 million) in Dammam for Ajlan Brothers and a BMW showroom (SR 7 million) in Al Khobar for Youssef Marroun Contracting. Other completed projects are the West Avenue Mall building (SR90.8 million) for the Gulf Real Estate Company in Al Faisaliyah district in Dammam, which included the design, fabrication, supply and erection of more than 1,200MT of pre-engineered steel buildings as well as the provision of all engineering, procurement and construction (EPC) works; in addition to a powder plant building (SR5 million) for Saudi Industrial Detergents Co (Sidco) in Dammam. 

In one of the challenging projects involving complex design and engineering, Zamil Steel has recently built multiple levels with a total height of around 40 metres. “The structure had high complexity in design and engineering as it required curved beams and continued handrails,” says Al Sahib.  

In Doha, Qatar, Zamil Steel has recently built a cement storage building (SR9.2 million) for Qatar National Company.

To further boost its marketplace appeal, Zamil Steel aims to increase its brand awareness among steel building customers as well as increase its market penetration. The company, which is a regular participant in local and international exhibitions, says it will continue to participate in such forums to achieve maximum exposure and reach out to new markets.

STEEL CONSTRUCTION

Zamil Steel Construction Co caters to clients that require comprehensive solutions for industrial and commercial steel structures. 

The company offers EPC services for setting up new projects in different market sectors and provides design, fabrication and supply of steel buildings as well as related civil and concrete works; erection of steel buildings; and installation of firefighting and fire alarm systems, architectural materials, and mechanical, electrical and plumbing works through turnkey contracts using full-site management teams.