Gulf steel firm halts expansion plans

A Gulf steel firm has put the brakes on expanding its capacity until the end of this year because of the slump in demand.

RAK Steel is based in Ras Al-Khaimah and was set up by the emirate's investment authority and the Middle East Traders Group.

The facility had been expected to be open by the end of the first quarter but this has now been put back until the end of 2009.

Chief executive Ajay Aggarwal said demand for steel had dropped significantly in the UAE. He added: “Until the construction industry starts working again, all other associated industries will be affected.”