Sulb acquires Saudi's UGS
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Saudi-based United Gulf Steel (UGS) Mill Company has been acquired by the United Steel Company (Sulb), a joint venture between Gulf United Steel Holding Company (Foulath) and Japan's Yamayo Kogyo Co.
Foulath is part of Gulf Investment Corporation (GIC), which is owned equally by the six-member states of the GCC.
“The acquisition of UGS with an annual capacity of 450,000 tonnes 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," said Hisham Al-Razzuqi, CEO of GIC.
“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,” he said.
Sulb and UGS are currently 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 four million tonnes.
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