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Ajmal Steel Tubes and Pipes: Leveraging KEZAD for Global Growth
Ajmal Steel Tubes and Pipes (AJ Steel) is a manufacturer and worldwide supplier of ERW (electric resistance welding) steel pipes and tubes. Since its establishment in the UAE, in 2006, AJ Steel Pipes (the main brand) has achieved remarkable growth and become a global name in its industry segment. It has a large portfolio of products serving a range of business sectors and includes heavyweight industries such as oil and gas, infrastructure and construction, power and engineering, agriculture and irrigation, ship building and renewable energy.
AJ Steel Pipes needed the strengths of a sound manufacturing ecosystem with solid infrastructure and sophisticated logistics to build their production and distribution capabilities. Reflecting on their success, AJ Steel Pipes confirms how being in KEZAD helped them leverage its location advantages to enhance their supply chain efficiency on a global scale. Connectivity with markets around the world and a world-class business environment in KEZAD allowed AJ Steel Pipes to focus on product quality, service and improving their production capacity, resulting in high growth.
REQUIREMENTS
For AJ Steel Pipes, the absence of in-country raw material manufacturers increased their import dependencies and cost liabilities, and imposed critical challenges in production. They needed to be in a location with proximity to raw material suppliers. Catering to a large and growing GCC and Middle Eastern region on one hand, and Europe, Africa, South Asia and the Russian bloc on the other required AJ Steel Pipes to have easy and quick access to these markets and meet their demands effectively.
SOLUTION
Manufacturers look for strategic locations and large commercial hubs to set up base because of worldwide reach and end-to-end supply chain efficiencies that they offer. KEZAD’s strategic location with close proximity to Khalifa Port and structured business ecosystem tailored to meet the needs of manufacturers positioned AJ Steel Pipes for rapid growth and expansion into new markets. The distance and transportation facilities to and from a technologically-advanced seaport was a crucial factor in their decision-making. KEZAD’s logistics competence streamlined the movement of goods ensuring timely deliveries for AJ Steel Pipes. Above all, KEZAD’s liberal and responsive business policies and focus on energy-efficient operations added comfort in their choice.
OUTCOME
AJ Steel Pipes’ success is defined by its expansion into the major global markets it serves currently – the UAE-GCC region, the United States, Canada, Europe, Australia and New Zealand. AJ Steel Pipes is the UAE’s one and only carbon steel ERW API certified pipe manufacturer. The company operates from its plant spanning 220,000 square kilometres with ongoing plans to expand into a 350,000 square kilometre facility in KEZAD. A new OCTG (oil country tubular goods) complex is underway, and is set to enhance AJ Steel Pipes’ production capacities to 750,000 metric tonnes, and make Made-in-UAE high-grade OCTG casings available to markets abroad. With its strategic partnership with KEZAD, AJ Steel Pipes continues to thrive and take the Made-in-UAE initiative to new heights.