Roots Steel International Co. Ltd (Roots Steel Group), a leading Saudi Arabia-based manufacturer of pre-engineered metal building systems, announced the acquisition of two Sharjah-based companies - Ginco Steel LLC and Polyco Co. Ltd, both wholly owned subsidiaries of Bank of Sharjah.
The acquisition is part of Roots Steel Group's aggressive expansion strategy in the region.
"Roots Steel Group aims to be the leading player in the metal building and structural steel industries in the region," said Mahmoud Mustapha, Managing Director of Roots Steel Group.
"The acquisition of Ginco Steel and Polyco complements our expansion strategy in the region, and will allow us to meet our operational requirements and growth demands more efficiently."
Roots Steel engages in the design, engineering, project management, manufacturing, sale, erection, and after-sales service of pre-engineered metal building systems (PEBs) in Saudi Arabia, the UAE, Syria and Egypt. Headquartered in Jeddah, the company offers customised metal building systems and components for industrial, commercial, and institutional applications.
Ginco Steel LLC, established in 1975, is a structural steel company based in the Sharjah Industrial Area. Its core activities include design, production, sales and erection of steel structures for high-end oil and gas, infrastructure, industrial, commercial and other projects.
Polyco Ltd Co., established in 1982 operates mainly in design, production, sales and erection of conveying systems for the mining, industrial and food industries. Polyco also manufactures and supplies various types of oilfield cabins.
Following the acquisition of Ginco Steel and Polyco, Roots Steel Group is stepping up its expansion initiatives further with the establishment of a new plant in Egypt, which will be inaugurated by May.
Another new plant facility in Bahra near Jeddah is expected to be operational by mid-2012. The group is targeting a combined production capacity of 300,000 metric tonnes per year from all its plants, covering the Middle East, Africa and Asia, Mustapha said.