Canam Asia’s metal decking line

Fouad Kassabaki joined Zamil Steel in 1996 and in 2005 was appointed to oversee the joint venture between Zamil Industrial and Steel Plus Limited, an affiliate of the Canadian Canam Group.

The JV was set up to manufacture open web steel joists and decking, expanding Zamil Steel’s product range into this specialised area of manufacturing.
“The objective of the JV was to capture a segment of the steel building products market which could not be covered locally,” said Kassabaki. “With Canam’s technology we have been able to introduce a product which has been available for 40 years in the USA and Canada.”
With work on the JV starting in 2003, the company has witnessed progressive growth with production levels now at five times the 2003 figures.  In 2003 some 2,300 tonnes of product was fabricated and shipped and in 2007 the figure is expected to exceed 10,000 tonnes.  “Production has, in fact, doubled in just a year,” said Kassabaki. “In 2006 our fabricated and shipped products reached 5,000 tonnes.”
Capacity has in fact been greatly increased with the introduction of a new facility in the UAE. According to Kassabaki, the Dammam facility can produce 8,000 tonnes but with the Ras Al Khaimah facility, this capacity can be increased to 20,000 tonnes. “We hope to reach maximum capacity by the end of 2008,” he said.
Developments over the past three years have included the opening of the Ras Al Khaimah (RAK) facility in February 2007 in the UAE. Canam Asia has also diversified its products adding two more lines. The first is for oversized web joists and trusses up to 5 m in depth, enabling the fabrication of large structures for projects such as domes, airports and sports arenas.
The second line is for metal decking panels which are being fabricated at the RAK facility. These use galvanised steel and a new technology where interlocking panel decks act structurally with concrete.
According to Kassabaki, the demand for steel joists and decks will be driven by customer and client requirements. “We need to increase the awareness of our clients about the benefits of our product,” he said. “International consultants already know about the product through a series of seminars and presentations. Now the various benefits, which include economic considerations as well as architectural and aesthetic appeal, are beginning to be accepted. As a result, demand has grown and we have in 2007 experienced 100 per cent growth following growth rates of 20 - 25 per cent in the first few years.”
Kassabaki also believes that the growth in demand has been fuelled by the expansion of the operation. “In 2005 we had three offices and today we have seven in the GCC. In 2008 we plan to expand into North Africa,” he said.
Exports of Canam Asia’s products account for some 30 per cent of total production. The main markets are Saudi Arabia, UAE and Qatar with a few projects executed this year in Ethiopia, Pakistan and Romania. The flooring and roofing product is being used in a range of buildings from shopping centres to multi-storey high-rise buildings.
Canam Asia’s priorities remain embedded in educating the public and specifically potential clients about the product. “We need to be better known and we have added experienced staff to get the message across,” said Kassabaki. “In addition we have introduced new software to manage job flow. The market is big but it needs time and strong marketing and sales.”
Prior to Canam Asia introducing their lightweight flooring and roofing products, heavier sections were being used resulting in unnecessary additional weight in the structure. According to Kassabaki, the system has been revolutionary for the region’s building industry. “Our products provide clients with economical and efficient alternatives to concrete precast and conventional steel flooring,” said Kassabaki.
Amongst the unique selling points for Canam Asia’s joists and decks is the fast production and delivery time. According to Kassabaki the technology enables the company to produce structural materials within a period of two to three weeks compared with eight to 12 weeks for concrete or other steel products. Canam Asia products have been used for aircraft hangars in Oman, residential towers in Makkah and applications in both the Dubai and Doha airports. “We are currently executing an extremely large warehouse in Rabigh, half a kilometer in length,” said Kassabaki.
He believes that the JV has resulted in a positive association which might be taken to other territories in the near future. However there are still challenges which impact on the operation. Competition is fierce and Kassabaki is aware of the need to control costs in order that he can competitively pass on reduced prices to his customers. In addition, raw materials now need to be stockpiled due to high demand and this in itself is creating pricing pressure.
With a total staff of 200 between the Dammam and RAK facilities, Kassabaki is optimistic. “The current market is very promising and we have been exceeding our own expectations,” he said.