Eng Faisal bin Edan from Saudi Arabia’s Rajhi Steel has spoken about the company’s plan to increase production and begin supplying Qatar’s booming construction and infrastructure industries within months.

Ahead of a production increase of 1 million tonnes  “by the start of June”,  Eng Faisal told The Big Project that production will exceed the Saudia Arabian government’s production targets by 2013, allowing the company to export products other than the commercial steel it currently does, when full plant capacity is reached.

“We are hoping 2013 will be a chance for us to start exporting. We have not been able to export rebar until now because domestic demand is much higher than domestic supply

“Over the next month we will increase production by 1 million tonnes  and we also have a 3.5 million tonne boost this year, so full capability of the plant will be reached in 2013,” he added.

When asked how Gulf manufacturers will be able to stay ahead of demand over the coming years, he said: “There are other companies increasing supply and what is happening now is a lot of contracts have already been made with the Royal Family and Shiekh of Qatar and that will increase demand rapidly.

“In the GCC steel industry you can count the best manufacturers on one hand and we are one of them,” he added.

In 2008 Qatar was named one of the top four steel producers in the Middle East, and the mega infrastructure projects of Vision 2030, in addition to World Cup projects, continue to fuel demand.

Locally produced rebar prices in the Saudi Arabian market today remain at US$770 per tonne, compared to $685-690 from Qatar Steel and $660-690 in Turkey.

Commenting on the Qatari market during Project Qatar, Eng Faisal commented: “It has become attractive for everybody and that is why we are here. We have a relatively small market share here at the moment, but that will expand. If we are looking to future markets Qatar will be a good market, even if there are domestic supplies.”

Eng Faisal ranks Qatar’s steel market third in the region behind Saudi Arabia and UAE.

“Since they announced 2022, a lot of changes and projects have started to happen. It has become attractive for everybody and that is why we are here. We have a relatively small market share here at the moment, but that will expand,” he added.