Qatar Steel pursues its growth strategy of upgrades and new expansions in order to meet the growing steel demand in Qatar and to consolidate its competitive position in the regional markets within GCC.
We strive to grow by leveraging available and cheap natural resources, acquiring new technology and product diversification through partnerships and acquisitions. We look for strategic investments by way of acquisitions and joint ventures in iron ore and steel related production facilities to secure basic raw materials for production and to seize market opportunities for down-stream products.
During 2015 – 2016, the strategic priorities for the company had changed with focus on operational excellence (safety and cost). Global economy down with Chinese real GDP growth trending down to 6.9% on 2015 and 6.7% on 2016. Over supply of steel products had badly affected the global steel market resulting in price drop by around 35-40% in the last two years. Due to lower Brent crude prices and fiscal deficit among oil exporting countries, GCC economics in general are moving towards new revenue streams.
Qatar Steel’s growth strategies are addressed in the company’s five-year business plan, which is re-examined and updated annually. Under current circumstances, to stay competitive, we have gone ahead with full-fledged cost optimization program with committed reductions in Operations. The consolidated Business Plan 2017-21 covers our current business from the operating units in Qatar and Dubai as well as the strategic investments of Q-Coat, Foulath and SOLB Steel.