ADPICO's ambitious future expansion plans for the re-bar and stainless steel market | ADPICO's ambitious future expansion plans for the re-bar and stainless steel market -
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ADPICO’s ambitious future expansion plans for the re-bar and stainless steel market

United Arab Emirates: Wednesday, April 06 - 2005 @ 12:45

The company is considering entering the stainless steel and re-bar market with production sites in Abu Dhabi and Iran, said Feisal Hammude, director for international sales and marketing, adding that the moves were part of the ambitious plans for the next few months of the Safa Group, of which Adpico is part.

“All plans are still in the negotiations stage and nothing is yet confirmed,” remarked Hammude, adding, “there’s lots of excitement at our company regarding these opportunities and any day our managing director, Ali Hosseini, will let us know what new plans have unfolded and how soon we can begin work.

Currently, from the first phase facilities, the company is producing six-inch diameter ERW round black pipes as well as square/rectangular hollow sections. These are mainly used in the construction, scaffolding, oil & gas and general fabrication sectors. We are already starting towards producing up to eight –inch with the nexr few months.The first phase will be producing upwards of 300,000 tones per year (tpy) from a total of nine mills, seven of which are already in operation.

“We are now in the process of installing our galvanizing lines in our other phases as well as large-diameter production lines for API pipes used in the oil & gas sector,” he said. Work on those facilities is to begin by the end of April for completion by the end of August.

Hammude said two other phases would be completed and running at full capacity by the fourth quarter of 2005, bringing total capacity to about 1.2 million tones for 2006. The diameter of the pipes will be extended to 24 inches. We plan to fill any void and carry every required size or profile demanded in the marketplace. This will help alleviate current buyers from having to go to Oman or Saudi for specialized products. They can now be ordered next door and shipped immediately saving on duties, transportation, time line and above all the bottom line.

He said all materials will be tested and certified to ISO and ASTM standards. “Quality is our major concern and we pay attention to it in detail. We import top-quality raw materials from Iran, Germany and Russia. We are currently in the process of getting the required certifications for our factory and products, which we expect to receive in four to six months.”

The API certification is important for Adpico as it enables to export to the US market. Hammude said the company has already received a number of enquiries from American buyers and visitors to their plant. “When they visited our plant they were very much surprised to see the size, technology, and standards that are in place in this part of the world. They like to see that we follow various guidelines according to employee safety, environmental, testing, and organization policies. Our facility truly sets us apart from the rest in the region. These are key selling features in today’s market if we intend on forging strong relationships and alliances with our customers,” said Hammude.

The Safa Group’s other main production facilities are Save Rolling and Safa Rolling in Saveh, Iran, and Alpha Steel (Newport, Wales, and UK) with sales offices throughout Europe and now opening in the U.S and Canada.

The group has implemented large expansions during the past three years. By 2006, it will have an annual production capacity of nearly 13 million tonnes, Hammude said.

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Wednesday, April 6- 2005 @ 12:45 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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