EMSTEEL, one of the region’s largest publicly traded steel and building materials manufacturers, has launched its Asset Enhancement Programme, a strategic initiative with a capital expenditure of approximately USD 170 mln. The programme aims to enhance production capabilities and introduce advanced steel solutions to meet growing market demand.
Phase 1 will upgrade EMSTEEL’s existing rolling mills, enabling the production of high-strength rebars and advanced heavy-section steel products to meet evolving industry requirements. Key improvements include advanced shear systems for manufacturing sustainable, high-strength rebars such as ES600, ASTM Grade 80, and ASTM Grade 100. The initiative will also incorporate state-of-the-art rolling mill technology to produce quenched and self-tempered (QST) and thermo-mechanically controlled processed (TMCP) heavy-section steel.
Phase 2 will introduce a new wire rod outlet with a capacity of up to 500,000 tons per year, along with upgrades to existing rolling mills. This expansion will facilitate the production of high-value wire rods and high-tensile rebar in coil. To support this growth, EMSTEEL will enhance its steel melt shop with VD technology and billet caster upgrades, ensuring the production of high-carbon and special alloy billets for advanced applications.
These investments mark a strategic shift from standard commodity-grade steel to specialized, high-value products with improved strength, durability, and efficiency. The company noted that the GCC market, which currently relies on imports for value-added wire rods, is expected to see demand grow at a CAGR of 7-10pct over the next decade. By overcoming production limitations and expanding its portfolio, EMSTEEL aims to strengthen its position in key sectors such as infrastructure, energy, railways, petrochemicals, and automotive manufacturing.
The project follows an ambitious timeline, with the first rolling mill upgrade scheduled for commissioning by Q4 2025 and the second by Q2 2026. Phase 2 is expected to be completed in the first half of 2027.
