26 September 2011
MUSCAT: Gulf United Steel Holding (Foulath), a leading global steel investment vehicle and the world's first fully integrated steel producer, yesterday announced the acquisition of United Gulf Steel Mill (UGS) based in Saudi Arabia by its subsidiary United Steel (SULB). SULB is a joint venture between Foulath (51 per cent) and Japan's Yamato Kogyo (49 per cent), a leading global section producer for the production of beams and structural steel sections, said a company release.
Foulath's shareholders are among the region's most reputable and committed investors, each with a long track record of investment in the regional steel and metals industry and other key economic sectors.
Gulf Investment Corporation (GIC), Kuwait, which is owned equally by the six governments of the GCC owns 50 per cent of Foulath, Qatar Steel owns 25 per cent, Mohammed Abdulmohsin Al Kharafi & Sons owns 10 per cent, National Industries owns 10 per cent and Kuwait Foundry owns 5 per cent.
GIC's financial services
GIC is a leading financial institution offering a comprehensive range of financial services. GIC was established in 1983 to reflect the desire of the GCC states by promoting the role of private sector in economic activity.
GIC has focused its activities in direct investment in new projects in the GCC countries, providing investment banking services to both, private sector and governments, as well as to invest in GCC and global markets.
GIC has invested in about 50 projects in the vital sectors, especially steel, chemicals, petrochemicals and utilities, in partnership with others both, private and government sectors.
GIC is the largest non-Bahraini investor in the Kingdom of Bahrain with the market value of investments of about $ 6 billion in the key sectors of iron & steel and energy.
Commenting on the announcement of UGS acquisition, Hisham Al Razzuqi, chief executive of GIC said: "The acquisition of UGS with an annual capacity of 450,000 tons of light and medium sections and beams by SULB emphasises GIC's main mandate in developing the economy of the region through investments in profitable projects or acquiring companies that are facing difficulties and turn them around to profitable companies."
For example in 2000, GIC acquired Gulf Industrial Investment Company (GIIC) in Bahrain, pelletising plants with an annual capacity of 12 million tonnes of pellets, which was underperforming, and with the knowledge and experience of GIC in industrial investments, succeeded in turning the company into one of the most profitable companies in the region. Similarly, SULB has acquired UGS, which was facing financial difficulties, to turn it around to profitability by integrating it with Foulath's fully integrated facility in Bahrain."
"UGS being part of Foulath will benefit from the integration by securing raw material (billets) from SULB on a continuous basis at a very competitive price, enabling it to penetrate the market, ensuring its sustained profitability," Al Razzuqi added.
"SULB and UGS currently are the only producers of a full range of light, medium and heavy, sections and beams in the region with a combined capacity of about 1.1 million tonnes a year which will replace about 25 per cent of the total annual imports of 4 million tonnes," Al Razzzuqi explained.
"GIC will continue to support private and government sectors to advance its mission and play a major role in supporting the growth and further development of the GCC economies," he said.
MUSCAT: Gulf United Steel Holding (Foulath), a leading global steel investment vehicle and the world's first fully integrated steel producer, yesterday announced the acquisition of United Gulf Steel Mill (UGS) based in Saudi Arabia by its subsidiary United Steel (SULB). SULB is a joint venture between Foulath (51 per cent) and Japan's Yamato Kogyo (49 per cent), a leading global section producer for the production of beams and structural steel sections, said a company release.
Foulath's shareholders are among the region's most reputable and committed investors, each with a long track record of investment in the regional steel and metals industry and other key economic sectors.
Gulf Investment Corporation (GIC), Kuwait, which is owned equally by the six governments of the GCC owns 50 per cent of Foulath, Qatar Steel owns 25 per cent, Mohammed Abdulmohsin Al Kharafi & Sons owns 10 per cent, National Industries owns 10 per cent and Kuwait Foundry owns 5 per cent.
GIC's financial services
GIC is a leading financial institution offering a comprehensive range of financial services. GIC was established in 1983 to reflect the desire of the GCC states by promoting the role of private sector in economic activity.
GIC has focused its activities in direct investment in new projects in the GCC countries, providing investment banking services to both, private sector and governments, as well as to invest in GCC and global markets.
GIC has invested in about 50 projects in the vital sectors, especially steel, chemicals, petrochemicals and utilities, in partnership with others both, private and government sectors.
GIC is the largest non-Bahraini investor in the Kingdom of Bahrain with the market value of investments of about $ 6 billion in the key sectors of iron & steel and energy.
Commenting on the announcement of UGS acquisition, Hisham Al Razzuqi, chief executive of GIC said: "The acquisition of UGS with an annual capacity of 450,000 tons of light and medium sections and beams by SULB emphasises GIC's main mandate in developing the economy of the region through investments in profitable projects or acquiring companies that are facing difficulties and turn them around to profitable companies."
For example in 2000, GIC acquired Gulf Industrial Investment Company (GIIC) in Bahrain, pelletising plants with an annual capacity of 12 million tonnes of pellets, which was underperforming, and with the knowledge and experience of GIC in industrial investments, succeeded in turning the company into one of the most profitable companies in the region. Similarly, SULB has acquired UGS, which was facing financial difficulties, to turn it around to profitability by integrating it with Foulath's fully integrated facility in Bahrain."
"UGS being part of Foulath will benefit from the integration by securing raw material (billets) from SULB on a continuous basis at a very competitive price, enabling it to penetrate the market, ensuring its sustained profitability," Al Razzuqi added.
"SULB and UGS currently are the only producers of a full range of light, medium and heavy, sections and beams in the region with a combined capacity of about 1.1 million tonnes a year which will replace about 25 per cent of the total annual imports of 4 million tonnes," Al Razzzuqi explained.
"GIC will continue to support private and government sectors to advance its mission and play a major role in supporting the growth and further development of the GCC economies," he said.
© Times of Oman 2011
