Together To Protect National Products
The era in which we live today is highly competitive, with the iron and steel industry witnessing turbulence, decisions and fluctuations in the world and may be one of the most fiercely competitive industries in the past period.
This competition has led to the decline of many companies’ revenues or turn them into losses, which confirms that the big players are only the most capable to withstand the competition.
For this, we find that steel companies are always looking for merger and enlargement of production capacity.At the global level, we find the giant giant Arcelor Mittal production volume of 96 million tons in 2018 alone and became the first in the world and increased its competitiveness and control of the markets.
With the increasing trend towards integration globally, the Arab steel industry is still living in a state of individuality and duplication in production, which leads to competition rather than integration and weakens the ability of companies to face the ferocious attack of imported products of a foreign nature entering the Arab markets, benefiting from The concept of freedom of international trade at times and currency fluctuations sometimes, which has become a threat to the production of Arab countries domestically and affect the development of the steel industry in the future.
In the past, attention has been focused on production strategy where the objective has always been to increase production to meet the needs of local markets, especially traditional products such as rebar.
However, with the Arab companies in most Arab countries covering their needs of traditional products (rebar) and has surplus, the success of this industry has turned to the ability to direct the production of this industry to international markets and open new markets and face the fierce competition in these markets with high quality production at an appropriate cost. With the development of product range to meet the needs of changing markets.
There are steel companies in the Arab world aimed at directing their production for export, Others have surpluses and are looking for overseas markets to export their production ,There are some companies that suffer from high cost of production and can not achieve the minimum specifications and quality that help them to market their production outside their domestic markets.
In addition to companies with old technologies that need huge investments to rectify their situation and the exploitation of productive and human capacities.
We must also take into consideration the preservation of future investments in this industry and the technological leaps that have accompanied the continuous development in the industry.
Therefore, the interest of Arab steel companies has become focused on the export strategy and may be the task of export is one of the most difficult tasks faced by any industry because they carry a double content of the determinations.First, a challenge to prove the ability of companies to be present in global markets Secondly, a self-challenge is the extent to which they can constantly renew themselves through research and development.
Over the past period, some Arab steel companies have been able to confirm their presence in a number of international export markets, especially companies from Egypt, Saudi Arabia, UAE, Qatar and Libya.
In the Arab world, if we are to promote this industry, we must cooperate and have strategic alliances that move us from the state of cooperation to the state of cooperation. We must change the concept of the iron and steel industry community in the Arab countries as producers, traders and consumers. Everyone, not just governments under the measures taken by most countries in the world to protect its products without considering any previous agreements under the slogan together to protect national products.
Therefore, a policy should be developed to help integrate Arab steel companies and minimize competition. This should be taken into consideration in future investments, new projects or expansions, and to unify sporadic efforts to meet the challenges facing the Arab steel industry.
Dr. KAMEL DJOUDI