Increasing construction activity drives aluminium companies' expansion in the GCC
Posted on 7th November 2014
Emirates Extrusion Factory, EEF, an aluminium extrusion company in UAE, and White Aluminium Extrusion, a producer in the aluminium and glazing sector, both subsidiaries of Masharie LLC, the private equity arm of Dubai Investments, have announced aggressive expansion plans amidst surging demand for aluminium products as construction activities intensify across the UAE and the region.
EEF and WAE have reported that demand for their aluminium profiles have increased from 24,100 metric tonnes in 2013 to 27,250 metric tonnes in 2014, registering a 13 per cent year-on-year increase, in line with heightened construction activities, according to news reports on ConstructionWeek Online.
To cater for the increase in demand, EEF has recently announced plans to commission a new production line at its aluminium extrusion plant in Techno Park, Dubai which will start commercial production at the end of the first quarter of 2015. This line will increase the capacity by another 6,000 metric tonnes per annum.
In addition to this, EEF is finalising a new powder coating plant with a capacity of 7,200 metric tonnes per annum. The plant will engage the latest technology from Europe to produce the quality specified at the international level. Meanwhile, WAE is finalising an anodising plant from Italy with a capacity of 4,800 metric tonnes per annum. Once complete, this will be a fully automated plant with the latest technology.
Both EEF and WAE export 60-70 per cent of their finished goods to GCC countries and nearly 25 countries across the Mena region. The companies plan to expand its scope to over 50 countries over the next five years. Downstream projects are expected to increase in the coming years, due to the surge in the capacity in prime aluminium within UAE and across the GCC.
Khalfan Al Suwaidi, Managing Director of EEF and WAE, said, “Architectural, building and construction applications accounted for over 80 per cent of the extrusion market in the Middle East region and EEF and WAE are building on their leadership with high-quality aluminium systems for architectural and non-architectural applications. UAE, Saudi Arabia and Qatar are witnessing a spurt in construction activity, and this has put added demand for aluminium profiles at our plants. In view of this latent demand, we have planned aggressive expansion of our production lines.”
He added, “Apart from construction, there have been significant investments in the transportation, electrical and industrial sectors across the GCC countries, and the demand for aluminium extrusion products for these sectors is expected to increase in the coming years.”
Aluminium production in the GCC is expected to grow significantly in the short to medium term and the region is expected to contribute around 15 percent of the total global production of aluminium by 2015. Aluminium exports are expected to be robust in the future as well thereby becoming one of the key non-oil industry sector in the UAE.
EEF and WAE are engaging their experience with system providers to focus more on prestigious projects in the UAE, GCC and North Africa, providing test certificates and quality assurance required by the consultants. EEF offers an impressive range of premium-quality, energy-efficient extruded aluminium profiles, which include windows, doors, and structural glazing, as well as partition grill, hand rail, and curtain wall systems.Back to all Construction News
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