- AED175 million expansion to make ASSENT one of the largest steel companies in the region
- The new expansion makes Shafar one of the largest steel companies in the region, spread over an area of 2.4 million square feet.
Al Shafar Steel Engineering LLC (ASSENT), a leading company in the field of structural steel design and manufacturing and a member of the UAE-based Al Shafar Group of Companies, has announced the expansion of its facilities located at Dubai Industrial Park. The expansion, which will result in one of the largest steel manufacturing companies in the region, is geared to grow the company’s operational footprint in the UAE and the wider GCC region.
As per the expansion land lease area plan, ASSENT will add four new facilities spread over additional 1,200,000 square feet of land, and that will lead into reaching a total leasable area of 2.4 million square feet. Construction is scheduled to begin in Q2 2017, and the new facility is estimated to start operations by end-2018.
ASSENT will invest AED100 million on the construction of facilities and AED75 million on installing new machinery. With 2,300 employees projected to work on-site, the state-of-the-art factory will manufacture and fabricate ready-to-use products for delivery to local clients, with integrated facilities for warehousing, storage and offices.
Once the new facilities are commissioned towards end-2018, they will enable ASSENT to increase its annual production value by approximately AED300 million in the first two years, with an annual growth of 15% to 20% in subsequent years. This growth will add to ASSENT’s current annual production levels that stand between AED800 million and AED1 billion.
Speaking on the expansion, Amr Ali Ahmed, Manager Partner & CEO of ASSENT, said: “Strengthening our services to our customers and catering to the rising regional demand for steel are the key reasons for our decision to expand our facilities at Dubai Industrial Park. With the UAE’s steel manufacturing sector expected to grow to a robust 20% by 2021, a bigger factory shall place us in a superior position to contribute towards this growth. It will also help us achieve our long-term vision of expanding our footprint within the UAE and the GCC region.”
He added: “Our decision to locate our facility in Dubai Industrial Park was influenced by the unique partnership we enjoy with the industrial hub. This prized partnership is the backbone of our commitment to effectively serve our customers, and to contribute towards accelerating industrial growth in the UAE. By improving quality, service and productivity, we aim to make the UAE the clear leader of industrial products in the region.”
For his part, Saud Abu Al-Shawareb, Chief Operating Officer of Dubai Industrial Park, said: “We are pleased to witness the strategic expansion of ASSENT. The new facilities will promote industrial growth and sustainability for the benefit of the community. In recent years, the UAE has become a highly promising destination for local steel manufacturing, and the sector is an active contributor to the nation’s non-oil GDP. ASSENT’s expansion further testifies to Dubai Industrial Park’s commitment to provide world-class infrastructure that fuels client growth and supports their strategic ambitions.”