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Steels of strength

SULB is the region’s leader when it comes to manufacturing structural steel; it now has exports to more than 40 countries

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Am o n g t h e f i r m s p i o n e e r i n g t h e K i n g d o m ’s m a n u f a c t u r i n g revolution, SULB stands tall for all reasons. The company exports 99 per cent of its products to customers in more than 40 countries located across the broader MENA region, South East Asia, Americas and Europe. And, today, nearly 50pc of all structural steel sections used in the G CC ’s i n f ra st r u c t u re d eve l o p m e n t a re manufactured by SULB in the Kingdom. Th e f i r st f u l l y- i n te g rate d m e d i u m a n d heavy beams and structural steel sections producer in the Mideast region, SULB is a joint venture between Foulath (51pc) and Japan-based Yamato Kogyo (49pc). The company has two rolling mills, one in the Kingdom and the other in Saudi Arabia. It is a fully integrated producer from iron ore to finished steel products. According to SULB, which boasts a strategic location, its positive forecasts are further reinforced with cutting-edge technical know-how from Yamato Kogyo and shareholders who are among the region’s most reputable and committed investors.

The light to medium structural mill situated in Jubail, Saudi Arabia, previously known as UGS, became Saudi SULB following its acquisition by SULB in 2011. It has a production capacity of around 400,000 tonnes. Consisting of a hot rolling medium and light section continuous mill, the facility utilizes steel billets supplied from SULB’s Bahrain-based facility, which is situated in the Kingdom’s Al Hidd Industrial Area. In the Kingdom, SULB’s facilities consist of a direct reduced iron (DRI) plant, a melt

shop (MS) and a heavy and medium section rolling mill (HSM). The Heavy Section Mill in the Kingdom will achieve 600,000 tonnes at full capacity. The combined structural steel capacity of the two facilities will ultimately be one million tonnes per annum. Chief Executive Officer Ravi Singh is at the helm of affairs at SULB. He says green steel is the future and SULB is very well positioned to champion this green drive among the steel manufacturers. “If you take a look at the global steel industry, it releases 1.8 tonnes of carbon dioxide for one tonne of steel manufactured. We have been very careful when it comes to our process route. Since we have a gas-based DRI Electric Arc Furnace, our greenhouse gas credit is half of the global average. We measure it every year and we do a greenhouse gas audit. But we don’t want to sit on laurels. We want to reduce it further as greenhouse gas emissions are a global issue. We are in the process of having our studies done to reduce them further.”

“Right now, if we want to switch, we can switch to hydrogen also. The plant has the capability to switch to hydrogen if hydrogen is available at an affordable price as a fuel. We can’t have direct hydrogen because the cost of hydrogen will be almost half the cost of steel itself. Unless there is government policy within an international carbon tax framework the shift becomes very difficult,” he points out. The World Steel Association, which is the largest association of steel companies across the world, has set the target to reduce greenhouse emissions by 50pc by 2050 and that means containing carbon dioxide to 925kgs per one tonne of steel produced and many GCC players including SULB are already below this level. This is a major Strategic Advantage for GCC steel producers. “Unless a carbon tax becomes a reality in all major markets the transition becomes difficult. It’s a loss-making proposition. The major consuming countries will have to make regulations that will aid in the transition,” Mr Singh says, adding that the future holds good potential for exploring solar as well as wind energies for the functioning of steel plants. He highlights that, in line with the green drive, recycling of steel is of immense importance. “The world needs metals. Currently, 35pc of the world’s steel is made from scrap iron. We would be very happy if the Bahrain government bans export of scrap iron. And when we make steel from

Mr Singh WE HAVE ABOUT 600 EMPLOYEES HERE AND NEARLY 200 EMPLOYEES IN SAUDI ARABIA. AND APPROXIMATELY 45 TO 50 PER CENT ARE BAHRAINIS

SULB is committed to employing best talents from the Kingdom and training them to work in skilled operational areas

scrap iron, there is less greenhouse gas emission. Most of the steel plants in the region are scrap based. Steel is a futuristic material because it is a material that can be recycled 100pc any number of times.” Mr Singh says that SULB stands to benefit, in the longer run, from the infrastructural development push, happening across the world as the company is a pioneer in manufacturing steel columns and beams. “There is no infrastructure development w i t h o u t s te e l . M o s t o f t h e b e a u t i f u l buildings across the world including Burj Khalifa are steel structured buildings. Most of the glass covered buildings are steel structured buildings.”

H e e m p h a s i ze s t h a t m a ny We ste r n countries, with the UK being prominent among them, are now embracing steel-friendly architecture, “which is welcome news for companies like SULB”.

W i t h r e g a r d t o t h e partnership with Japanbased Yamato Kogyo, Mr Singh says, “The Ya m ato G ro u p o f Japan has been in the steel sector for a long time. Bahrain plant is one of their investments while Thailand, Vietnam, Korea and the US plants being the other. A significant player in structural steel, they give us global benchmarking information. And most importantly the world is always happy with Japanese quality standards.” SULB has a track to be emulated by other companies when it comes to Bahrainisation. “We have about 600 employees here and nearly 200 employees in Saudi Arabia. And approximately 45 to 50 per cent are Bahrainis. Starting with General Manager, Operations, we have Bahrainis at the top level and the same goes to the middle and bottom levels. This shows that there is no lack of talent in this country.” Mr Singh says that SULB will continue its forward success march despite all the challenges including the recent Covid-19 pandemic. “SULB will take ‘Brand Bahrain’ across the nations and continents. People would be surprised to know that we are the top steel exporter to South Korea, which is a major industrialised nation.”

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