24 June 2007
Dubai: Dubai Investments (DI) PJSC, a holding company operating a range of businesses, plans to invest Dh2 billion in boosting its glass production and on acquisitions.
The company operates two glass factories in the UAE and one in Saudi Arabia.
Dubai Investments chief executive officer Khalid Bin Kalban told Gulf News talks were under way to buy one glass company in the UAE and two in Saudi Arabia.
It will invest Dh183 million in a new production line at Emirates Float Glass, which is under construction in the Industrial City of Abu Dhabi. "We have decided to increase our glass production because demand for glass has grown," Bin Kalban said.
"We will invest Dh2 billion more in the next four to five years," he added.
The company sees a shortage of glass in the region due to the intense construction activity.
"The UAE glass demand is rising seven per cent annually. Globally the growth is five per cent," Bin Kalban said.
Dubai Investments earlier planned to spend Dh734 million on the first phase of Emirates Float Glass.
The new production line will double the plant's capacity to 396,000 tonnes per year.
"The first phase will be ready in August 2008 and the second after six months. We are working on the two phases in parallel," Bin Kalban said.
The plant will be further expanded with a glass coating facility at a cost of Dh175 million, the chief executive added.
The company's portfolio includes Emirates Float Glass, Emirates Glass, Lumiglass Industries and Saudi American Glass Company.
Emirates Float Glass will manufacture products to cater to the architectural and automotive sectors.
Bin Kalban said one factory will be built in Qatar and discussions are taking place to acquire glass firms in some countries.
"We are in negotiations to buy a couple of existing units in Saudi Arabia and one in Jordan," he said.
At present the company has investments exceeding Dh1.8 billion in the glass business, which is grouped under a subsidiary called Glass LLC.
Dubai Investments aims to make Glass the largest manufacturer of glass products in the Middle East.
The Dubai-listed company has plans to float its glass business at a later stage, according to finance manager Yawar Kamal Pasha.
"We are consolidating the business before going public. There are several acquisitions and start-ups in the planning," he said.
By Shakir Husain
Gulf News 2007. All rights reserved.
