UAE-based Danube Building Materials has announced it will develop a new steel facility in Oman to strengthen its presence in the sultanate.

The facility, which will cost $13.6 million, will cover an area of 51,000 sq ft in Mabella, near Muscat, and serve as the logistics hub for Danube’s operations in Oman, facilitating the storage of all stock including deformed bars and other structured steel such as angles, channels and plates.
The hub will enable Omani construction firms to receive their supplies at highly competitive prices on account of the economies of scale generated through bulk purchasing done in Dubai, Danube said.
It added it would undertake large-scale imports of steel products from Turkey, China, Taiwan, Korea, South Africa, Ukraine, Russia, India, Saudi Arabia and Iran to address varying customer requirements.
“The unprecedented growth of the real estate market in Oman has been fuelling intense activity in the construction scene, with the government focusing on advancing its local steel trade,” said Rizwan Sajan, chairman, Danube Building Materials.
“Our new facility will substantially increase our steel products output, thereby ensuring a steady supply of top-grade steel-based construction materials not only for the country but also for the rest of our regional markets,” he added.
The Sultanate of Oman is aiming to become one of the Gulf region’s top iron and steel producers, with plans to invest $5 billion to boost productivity and construct new facilities in the domestic steel sector, Sajan explained.
Industry analysts are optimistic of Oman’s potential to become a major steel producer in the region, with the government making substantial investments in developing its steel production capacity primarily to supply the burgeoning local consumption. Capacity is expected to hit 1.1 million tonnes by 2010.
 Danube recently announced its plans to invest Dh200 million ($54.4 million) in the steel industry in the UAE for 2008.
This includes investments of Dh80 million into new facilities in Ras Al Khaimah and Ajman.
With the huge demand in the region for construction materials Danube is also expanding in other emirates including setting up a Dh50 million facility in Sharjah.