Kuwait Steel: Focused on Expansion, Committed to Quality, Safety, Environment

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In an exclusive interview with Deputy CEO of United Steel Industrial Company, Faisal Al Khaldi, The Business Year (TBY) discussed the company’s challenges, its involvement in major development projects in Kuwait, and investments in optimizing production through Artificial Intelligence and robotics, as well as the company’s commitment to sustainability

What have been the main challenges and opportunities for Kuwait Steel in recent years?

Over the years, United Steel Industries Company, also known as Kuwait Steel, has established itself as a reliable partner in the country’s construction industry. Our technical expertise has grown through the experience of our personnel and facilities, our workforce consists of substantial Kuwaiti talent, and in the near future rapid Kuwaitization will further strengthen the available in-house Kuwaiti talent.

However, our current challenge lies in the scarcity of metal scrap, a crucial raw material for our operations. In Kuwait, demolition waste, construction and industrial scrap serve as our primary sources. We process magnetized materials in our furnace, melting them to create liquid steel. From this, we produce billets, which are then used to manufacture rebar for construction projects locally, and are also exported overseas. The current dynamics create a challenging situation where Kuwaiti-owned scrap yards generate significant income, but the benefits largely flow to non-Kuwaiti workers and other countries, leaving the local steel industry at a disadvantage.

Can you highlight some of the major projects Kuwait Steel has participated in and its partnerships with public-private entities?

We aim to be part of nearly all government projects in Kuwait. Materials from Kuwait Steel can be found in prominent structures like Al Hamra, NBK Tower, Al Tijara, Sheikh Jaber Al-Ahmad Al-Sabah Causeway, the New Kuwait International Airport, Al Shaheed Park, Khiran Mall, Avenues Mall, 360 Degrees Mall, Al Arena Kuwait, RAFA Nadal Academy, Mourouj Food Complex, Al Zour Refinery, LNG gas terminals, desalination/power plants, and more.

As a major rebar provider, we contribute to the construction of various government projects across the country. The existing projects have been ongoing for years, and we face restrictions in exporting our products. Our only option is to expand our market share. The government and Parliament must recognize the added value of the private sector to address this persistent problem.

How is the company integrating sustainability into its core business?

We are committed to reducing our carbon footprint in every way possible; however, achieving complete environmental friendliness poses challenges, such as sourcing raw materials globally. Even if we maximize our green efforts, the world may not be fully prepared for widespread sustainability. Legislation is crucial to support and incentivize companies investing in eco-friendly practices. Without government support, the added costs of green initiatives can hinder competitiveness.

In Kuwait, we employ various sustainable practices, utilizing local scrap and adopting eco-friendly measures, such as recycling water and minimizing paper usage. While we strive for sustainability, a more mature approach and government support are essential for a broader impact in Kuwait. The Ministry of Environment needs to advocate for more environmental initiatives, despite the challenges. Our factory, a testament to government assistance, is just a fraction of our capabilities.

How have Kuwait Steel’s investments in technology supported its goal of becoming an industry leader?

AI and robotics play a significant role in streamlining production processes, particularly in handling tasks that involve high temperatures and hazardous conditions. Collaborating with industry leaders, we aim to enhance technology in Kuwait, focusing on reducing human intervention in complex processes. In terms of steel production, our recipe involves blending 17 components, including iron ore, DRI, HBI, limestone, and carbon, to meet stringent standards. AI is integral to optimizing this recipe, minimizing human involvement.

In the broader context of environmental sustainability, the industry is exploring alternatives like hydrogen to replace natural gas. However, achieving complete green transformation in the steel industry is projected to be at least 50 years away, given current cost constraints.

Drawing a contrast with older technologies, such as coal-based melting used by certain steel producers, our approach at Kuwait Steel involves using electricity for melting. The emissions from this process are efficiently managed through a back-of-house dust system, converting gases into usable materials for cement companies or extracting raw materials like zinc. Our commitment to sustainability ensures that nothing goes to landfills, contributing to a circular economy.

BIO:
Faisal Al Khaldi is Deputy CEO Chief & board member of Kuwait Steel. He is a business administration graduate and started his career in Kuwait Steel 15 years ago, rising through the ranks before being appointed to his current position. He is considered a stalwart in the GCC steel fraternity.