This project was commissioned jointly by two established companies within the steel industry. The first was formed in the mid2000s to develop a sustainable downstream chain to support Oman’s thriving industrial sector and already had a track record of investing in downstream steel industry processes. The company’s primary objective is to promote and invest in value-added economically viable projects that feed off local upstream industries that include metals, petro-chemicals and minerals. The second organisation is a well established raw materials supplier within the iron and steel industry.
Both clients wanted to develop an overview of the downstream steel sectors within the MENA region in order to evaluate the potential for further investments. For this purpose, they commissioned a desk based study to investigate the various market opportunities in the GCC, North Africa and other MENA countries including Iran.
The following product groups had been identified for investigation with specific reference to the MENA region:
McLellan investigated the markets for each of these product categories, including quantification of existing regional capacities and known expansion plans; as well as current and forecast demand levels. Furthermore, the main steel consuming sectors in the region were evaluated including potential demand drivers.
Based on the findings from the market assessment, the products were ranked in order of attractiveness using a range of criteria including market viability, required capital expenditure levels, potential operating margin, employment creation, environmental impact, level of technical know-how required and opportunities for downstream processing. The report concluded with a preliminary assessment of the financial performance of the three highest ranking opportunities as well as recommendations for next steps.