16 September 2007

Dubai: Emirates Central Cooling Systems Corp (Empower), Dubai's leading district cooling company and Logstor, the world's largest manufacturer of pre-insulated pipes yesterday announced a joint venture, Empower Logstor, to set up the UAE's largest pre-insulated pipe factory.

Empower will hold 51 per cent with Logstor taking the remaining 49 per cent stake in the venture, that will become operational next year.

The new firm will help service the demand for high quality pre-insulated pipes, especially for district cooling, which is increasingly being seen as the most energy efficient, safe, proven and environment-friendly solution to cool buildings.

"This joint venture, with a capital investment of $25 million, is a new opportunity for Empower to achieve backward integration. It will also consolidate our status as a leading regional player in pipeline systems. Our partnership with a major global brand will help us expand Empower's reach beyond the region," said Saeed Al Tayer, chairman of Empower.

The size of the regional pre-insulated pipe market is expected to exceed $1.5 billion over the next five years.

Growing demand

Total installed district cooling capacity in the Gulf region is expected to reach 9.6 million refrigeration tonnes (RT) by 2010, against 745,000 RT in 2005, according to a recent industry study. The UAE alone is expected to account for more than four million tonnes RT by 2012.

"The new company has been formed following an ongoing strategic review by Empower to ensure the supply of world class quality district cooling plants and pipe networks. It will meet the demand for hundreds of kilometres of pre-insulated pipes needed for the region's future district cooling needs," said Ahmad Shafar, CEO of Empower and chairman of the joint venture.

Currently Empower handles projects for several prominent clusters including the Dubai International Finance Centre (DIFC), Dubai Healthcare City, City of Arabia and Business Bay.

Empower also provides 60,000 RT to Jumeirah Beach Residence, the 22 million square feet development spanning 1.7 km, featuring 36 residential towers, four hotel towers and beach clubs.

By Staff Reporter

Gulf News 2007. All rights reserved.