Industries Qatar, one of the largest industrial companies in the region with multiple activities in a wide range production of petrochemicals, chemical fertilizers, and iron and steel products, announced the completion of all shares acquisition of Qatar Rebar Production Company by its subsidiary, Qatar Steel. The total amount of 346 million Qatari riyals, excludes cash and debt balances provided that the deal will be financed through the group’s internal financing sources.
The group believes that Qatar Steel’s acquisition of Qatar will bring many strategic and operational benefits to Qatar Steel and the group.
This acquisition will allow Qatar Steel and the Group to strengthen its position in the market as a significant supplier of steel bars. Qatar Steel will acquire a direct competitor with considerable production capabilities, which will enable Qatar Steel to maintain its position in the local market.
The acquisition will also lead to billet purchases from Qatar Steel, instead of importing them from abroad, in addition to cooperation and integration through distinction and operational excellence, keeping conversion and manufacturing costs low, and integrating operations with Qatar Steel’s main factory.
The acquisition will also enable Qatar Steel to diversify its products by adding new ones, such as wire coils, which the company does not produce.
This acquisition will strengthen Qatar Steel’s leadership position in the local steel market and provide new export opportunities for products such as wire coils and rebar that can be exported to GCC countries and global markets. The Group believes that the acquisition will contribute to supporting the Group’s growth strategy in the medium and long term.
Qatar Rebar Production Company headquarters is located in the New Industrial Area – Doha – Qatar. The company’s activities include rebar and wire coils production, in addition to trading steel products. The company currently has an annual production capacity of 500,000 tonnes of rebar.