The steel sector is changing. Green iron and steel are the goals at the end of an industry-wide transition that’s being undertaken all over the world, but one region truly set to benefit is the Middle East.
There, steel manufacturers have quietly toiled for years to diversify and hone their craft. Now that the spotlight is on, particularly through the local building boom, those firms are showcasing their skills and stretching their wings.
“The region you have to compete in is the region you’re logistically strong in,” Mohamed Abdelhameed, Executive Director at Arab Steel Fabrication (ASF), tells The CEO Magazine. “Considering we’re in Egypt, we can compete easily in a number of areas: North Africa, the Gulf, the Arabian countries and the south of Europe.”
Founded in 1997 as a subsidiary of the El Sewedy Industries Group, ASF has learned the lessons of its parent’s dynamic diversity initiative.
“El Sewedy began in 1938 as an electrical parts supplier,” Abdelhameed says. “It wasn’t until the 1990s that it penetrated the field of manufacturing.”
One of the company’s factories evolved into ASF, which Abdelhameed joined in 2004 as a Chief Engineer. Several positions and two decades later, he’s the company’s Executive Director, tasked with taking it into a potentially prosperous future.
“Through this journey, I shifted from the technical side to project management and sales,” he recalls. “I also gained qualifications, including a Doctor of Business Administration.
“Now I’m able to blend my academic knowledge and technical know-how to lead the company and to take it in new directions.”
Market expansion
Currently, the new direction is toward new markets, especially in the areas local to ASF.
“Much of the conversation there revolves around sustainability and environmental requirements, because there is the very important carbon border adjustment mechanism system you must navigate to enter the European market,” he reveals.
At the moment, ASF is working to gain this certificate as well as discussing significant deals with firms in Spain, Italy and the United Kingdom.
“I want to be the region’s leading steel company by 2030.”
Abdelhameed says ASF’s unique offerings and one-stop shop nature make it a natural fit for an industry in the midst of great change.
“You won’t find another steel fabrication company that can produce telecommunication towers, poles, plate work and such, as well as one that has the biggest galvanization kettle in the Middle East, all under one umbrella,” he says. “That’s our competitive edge.”
To sharpen this edge, ASF has poured its resources into a large new factory in Aswan. The capacity of the new facility has already helped it land a big contract with Italian engineering firm Tecnimont.
“The contract is worth almost 5,500 metric tons over 10 months, and that’s just stage one,” Abdelhameed explains.
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This external work is in addition to the constant service provided within Egypt’s borders.
“Among other things, we serve the transportation ministry for tunnels and high-speed rail,” he says. “We provide the steel transmission towers that electrify the lines.”
ASF also works with suppliers and external stakeholders to provide steel for parts and components. Asil Civata is one such partner, its catalog full of bolts, nuts and other components made with ASF steel.
Ironclad team
Powering all of this is a team of steel. Abdelhameed says the people around him are possibly ASF’s greatest asset.
“I believe you have to empower and invest in your team to make them the best they can be,” he reflects. “Treat them all like equals and imbue them with the confidence and spirit to manage, for this is strategic planning.
“You’re providing the groundwork that will serve the company in the future.”
“Let your team make mistakes and they’ll learn.”
Fear is a common hindrance to this kind of progress, he adds.
“Don’t be afraid. Let your team make mistakes and they’ll learn. It’s valuable experience that will serve them well in the years ahead.”
Abdelhameed admits he had to overcome his own fears and doubts earlier in his career, when he left engineering and technical work behind to shift into managerial positions.
“When you’re an engineer, you want to serve those skills,” he notes. “But I decided I had to put my technical experience to use in project management. It was tough, but it served me well as it ultimately carried me to the top of the business.”
“We want to decrease emissions and reliance on natural gas.”
Externally, Abdelhameed says ASF’s clients are its greatest point of focus.
“Yes, we take on projects and yes, we complete them, but that’s not the end,” he points out. “Once the project is finished, we extend after-sales service and technical support, even if it was not contractually in the scope of our work.
“It’s very important to guarantee the loyalty of our customers and make sure their needs are met. It’s not about clients and suppliers; it’s about partners. And to make a project successful, we have to be together hand in hand until the end.”
Built to last
With the goal of an annual capacity of 100,000 metric tons on the horizon for 2026, ASF is in a strong position to realize Abdelhameed’s future plans, which are suitably ambitious.
For starters, the sizable amount of power required for the galvanization process is subject to the company’s investment in solar energy.
“This is a plan we’ll be executing over the next year or so,” he says. “We want to decrease emissions and reliance on natural gas.”
It’s part of Abdelhameed’s desire to leave behind strong results and a great reputation.
“Because I care about my team, I want to leave a positive legacy that elevates us all,” he concludes. “I want to be the leading steel company in the region by 2030 and together, we can do that.”
