Tadweeer completes 80% of smelter study; TASI transfer file to be finalized in Q3: CEO

Nasser Aldueb, CEO of National Environmental Recycling Co. (Tadweeer)

National Environmental Recycling Co. (Tadweeer) completed 80% of the feasibility study for its metal smelter project, and preliminary indicators point to positive economic feasibility for the project, CEO Nasser Aldueb said.

Speaking to Argaam, Aldueb explained smelter projects are considered complex investments that require specialized technical and operational expertise, adding that it remains too early to determine a timeline for implementation or announce the project schedule.

The company is pursuing a board-approved strategy targeting annual revenue growth of 20% to 30% through 2030, he added.

On financial performance, the top executive indicated that recent revenue growth was driven by the operation of new production lines and higher utilization rates, which boosted returns and improved operational efficiency.

The first-quarter results were affected by the geopolitical turmoil in the region and the closure of the Strait of Hormuz, Aldueb said, noting that around 71% of Tadweeer’s sales are export-based, resulting in additional shipping and insurance costs despite higher sales during the period.

These conditions temporarily pressured profit margins, as sales increased while margins declined due to exceptional costs, he said; however, the company achieved what he described as excellent and exceptional profits.

Aldueb said Tadweeer recorded notable sales growth alongside increased production capacity but reaching full operating capacity in manufacturing industries typically requires time. However, the company managed to reach around 80% capacity utilization during the second quarter at a faster pace than initially planned.

He added that Tadweeer’s heavy reliance on exports stems from the nature of its products, which include copper, aluminum, precious metals, and stainless steel, amid limited domestic manufacturing capacity capable of absorbing such products and volumes, posing an operational challenge during the past period.

According to Aldueb, the company successfully managed to contain the impact of the strait closure by redirecting containers to alternative ports, helping maintain higher sales levels compared to previous periods despite increased shipping and insurance costs, which he described as temporary and unsustainable.

The CEO said China and India represent the company’s key export markets as two of the world’s largest importers of base metals, with major smelters and factories relying on such materials across various manufacturing industries.

Aldueb also expected global demand for metals to continue growing, supported by industrial expansion, particularly in the automotive and broader manufacturing sectors. He pointed to a growing global shift toward recycling instead of mining to preserve natural resources and enhance sustainability.

Regarding the transfer to the main market, the CEO said the company has met all required conditions, including liquidity requirements, noting strong growth in its shareholder base recently. He added that the company has resumed the transfer process and expects to finalize procedures and submit the file during the third quarter of this year.

Meanwhile, the executive noted the company’s participation in Argaam Connect came amid the presence of major investment funds and investors, providing an important opportunity to introduce the company, its activities, and financial results. He added that the company’s presentation received strong engagement from attendees, reflecting the intended benefits of participation.