MEED magazine reported that the Al-Oula Steel Manufacturing Company has started operating a new facility for the production of rebar with a production capacity of 250,000 tonnes of rebar annually, according to sources in the industry, who revealed that the operation began last month after three years of development at a total cost of 6 million dinars or about 20 million dollars.

The magazine said that all of the facility’s production planned for the next six months has already been sold out in advance, according to industry sources. While one of the sources stated that while the project market in Kuwait is witnessing a decline at the present time, strong sales of rebar from this facility indicates that the construction process is continuing and that the demand for raw building materials such as rebar is still strong.

The magazine concluded that the Al-Oula Steel Manufacturing Company built and developed the first licensed and integrated steel-rolling plant in Kuwait in 2003. The facility used scrap iron and scrap to produce and supply the local market with steel.

It should be noted that the Russian-Ukrainian war led to the disruption of global steel markets, as well as raising the cost of importing steel used in construction in the Middle East and North Africa region.