Dubai Investments has reactivated a feasibility study to set up a float glass company, which may require investments of Dh100 million.
The project would be the second such venture in the region, as Saudi Arabia already has one. "The decision on whether to go ahead with the project will be decided once the study is over," said Khalid bin Kalban, chief executive officer of Dubai Investments.
The plan to set up a float glass factory was proposed earlier, but due to some technical reasons, the study was put on hold. However, there is renewed interest in terms of a backward integration project since Emirates Glass is currently importing float glass paying higher prices from Saudi Arabia and some European countries.
Dubai Investments is setting up a joint venture company - Emirates Auto Glass - at a cost of Dh22 million in which Dubai Investments will hold a 60 per cent stake and the remainder to be held by a Finnish company. Since this project and Emirates Glass will have mutual benefits in terms of plant and machinery, a good amount of project cost will be saved.
Khalid Kalban said that Dubai Investments will see the number of subsidiaries in its fold rising from 12 to 18 this year.
"Masharee in itself is a sort of holding company with six companies under its control which in another year's time, will nearly double," Kalban added.
Dubai Investments is in advanced talks with a few companies which can be acquired by Dubai Investments. Two companies are already booked and a few others are being negotiated, according to Kalban.
Dubai Investments is also planning to set up unique ventures for truck trailer manufacturing, crane manufacturing, specialised containers for food and meals.
There is a specific project for aluminium containers being planned and towards this, Dubai Investments is holding talks with two European companies which have showed interest in collaborating with Dubai Investments. This project may be completed at a cost of around Dh10-Dh12 million.
Kalban said that almost all subsidiaries are doing well with many among them registering growth of 30 per cent and above in terms of revenue as well as profit. Emirates Building Systems has overcome the problems caused by the dumping of steel in this market by companies based in Iran and some neighbouring GCC countries.
The investment policy of Dubai Investments, according to Khalid Kalban, is focused on three areas.
While one-third of the total investments of the company with a paid up capital of Dh650 million, go to set up subsidiaries, another one-third goes to buy in small stakes in large companies like Thuraya, Saudi-based petrochemical company, etc.
Dubai Investments will always have some investments in overseas money market also.
Gulf News 2003
