MUSCAT – Al Jazeera Steel Products Company is in the process of setting up a joint venture in Saudi Arabia.
Al Jazeera Steel, in a disclosure to the Muscat Securities Market (MSM), also reported a 33 percent growth in net profit for the first six months of this year to RO2.8 million from RO2.1 million in the same period last year.
In his report to shareholders, company chairman Sulaiman Mohammed Al Rubaie said "the management is aggressively focusing on the Saudi Arabian market and has formally finalized a contract with a local company for a joint venture," Muscat Daily reported Monday."With this new marketing strategy, the management is expecting to tap into the high potential infrastructural projects market, and is hoping that it can improve sales in that region."

Sales revenue in the first half increased 16 per cent to RO54 million from RO46.7 million a year ago, while production went up 13 percent to 154,818 metric tons (MT) from 136,652MT.

Bejoy John, financial controller at Al Jazeera Steel, said the JV agreement with a Saudi company is in its final stage. "It will probably take another two months to get the deal finalized. The agreement will help us sell our products in the Saudi market.
"There has been an overall improvement in financial performance. Increasing sales volumes, along with substantially reduced costs, has contributed to profitability," he added. – Agencies