Essar makes Dubai a customised steel products hub

 By: Rachita Jha

 Fostering its plan for global expansion, Essar Steel Processing and Distribution (ESPD), an arm of Essar Steel recently announced the commissioning of its service centre facility in Dubai to cater to the Middle East and neighbouring regions. This is the third facility after one in UK for European markets and another in Indonesia for East Asian markets.
Located in Jebel Ali Free Zone, the facility is the most modern steel service facility in Dubai, UAE, with state-of-the-art hot rolled cut-to-length, HR slitter and CR and GI combination slitting and cut-to-length lines.
In an interview conducted by International Metalworking News-Middle East (IMNE), Vikram Amin, Executive Director for Sales & Marketing at Essar Steel Business Group, India talked about how its distribution centre in Dubai will act as a hub providing customised steel products to the entire Middle East.

 IMNE: What prompted Essar to set up this facility in the Middle East, and what is the focused product range for this region?
Amin: Middle East has been a natural market to us since we are located on the west coast of India. We have been serving this market for over 15 years and have good associations, which we intend to enhance. We are also bullish on the Middle East market as it is rapidly industrialising and the requirement of steel is commensurately growing. Realising the potential of this market, we have set up a steel processing facility. We will now be able to supply the custom-made flat steel products to our buyers on a just-in-time basis.

IMNE: Tell us more about the size, capacity and product lines of the new facility in Dubai?
Amin: This facility has a steel processing capacity of 250,000 tonnes per annum. We produce narrow coils up to 50mm wide, custom-sized sheets and plate products of various length and width. These products find applications in wide section of the industry, particularly in general engineering and fabrication.

IMNE: How does this facility support Essar distribution strategy especially the Oman steel market?
Amin: The facility is a hub for the region and will be able to provide proximity services to our customers. It is at a motorable distance form Oman and can supply plates and other services to steel users in Oman. As a hub, the facility will re-distribute the products to other areas in the region. Being located in special free zone, there will not be any penalty for exporting goods to other countries.

IMNE: Tell us more about the installed technology and logistics framework.
Amin: Essar Steel uses the SAP ERP system for integrating its systems and monitoring its supply chain. Essar possesses its own shipping company, Essar Shipping, and we have a sizeable fleet of ships. We are India’s first captive port based facility, that is owned and operated by us. The steel is directly loaded onto ships and sent to Dubai. In case of large orders, multiple port calls may be made. From Dubai, the material is redistributed mostly by road to ensure timely delivery of small lots.
With the advantage of port facilities, Essar Steel will make shipments from the largest single single-location 10-MTPA plant at Hazira in Gujarat to the ESPDF at Dubai for providing custom made steel products to valuable clients. Besides catering to Middle East region, the markets in the neighbouring areas will also be explored by ESPDF Dubai.
ESPD, the flat steel processing arm of steel major Essar Steel, is targeting to become 5-million-tonne-Vêtements et équipement Lifestyle pour Femme