Can you walk us through your growth strategy for the medium term?
Currently, we are producing around 2.4 MTPA steel through use of our own DRI, which is around 200,000 MT per month of steel produced, which is sold in the local market and primarily in the GCC. Our product composition is square billets, round billets, and rebar. 32% of the steel product is sold locally in Oman, while the remaining 68% is exported to various countries in GCC, Europe, and Far East. In rebar, we are market leader in Oman and also a leader in the export of rebar to the UAE. Round and rebar are our premium products and encompass 82% of our product portfolio, all of which is either sold locally or in the GCC. In this context, our medium-term growth strategy is becoming self-reliant in the bulk raw material required for producing steel and increasing market penetration and market share in the GCC, US, Southeast Asia, China, and Europe.
What technological upgrades can enhance the iron and steel manufacturing supply chain process in Oman?
The key is to focus on backward integration, asset sweating, and optimal utilization of available resources. To increase throughput dollar per minute, we have undertaken two investments to increase our SMS capacity from 2 MTPA to 2.4 MTPA by debottlenecking constraint up the value chain by adding a 2nd caster to our steel plant. On the upstream side, we have upgraded our DRI capacity from 1.5 MTPA to 1.8 MTPA. This backward enhancement brings down our cost and reduces our dependence on the purchase of metallics from the market. Going further, we have plans to transform JSIS Oman into a fully backward-integrated plant with upcoming investment in a lime and dolo calcination plant and prospective additional capacities in the form of a DRI and pellet plant. Moreover, we are improving maintenance practices through the use of automated tools, business excellence techniques, TPM, lean practices, better housekeeping of assets, TOC, data analytics, the systemic integration of SAP with automation systems, and more. We have enhanced our capacity utilization at various plants from 5-10% on a YoY basis.