16 July 2006
Dubai: Advanced coatings company Nukote Coating Systems International has teamed up with Fosroc Group Holdings Ltd in a distribution agreement expected to reap revenues of $500 million (Dh1.835 billion) from GCC markets in the next five years.
A deal between the two Dubai-based companies yesterday saw Fosroc, specialising in high-performance construction chemicals, become the global master distributor of Nukote products.
The agreement follows five years of close cooperation between the two and will see Jebel Ali-based Nukote gain vital access to Fosroc's markets in Africa, the Middle East, Europe and Asia.
Nukote's polymer coating products are used in land-based and sub-sea pipeline projects around the world. It also provides products used in facilities run by companies including Boeing, IBM and Motorola.
The privately-held company, which achieved turnover of $65 million in 2005, sees the construction sector as an area of expansion.
Its products have already been used to protect surfaces of the Dubai Creek buildings, the superstructure and foundations of Reem Bridge in Abu Dhabi and the roof of Dubai's re-furbished immigration building.
Michael Osborne, Nukote's president and CEO, said the partnership will significantly increase the number of people selling and marketing its products around the world.
John Scott, CEO of Fosroc International, said the partnership will help ease the company's move into the oil and gas sector. Fosroc is also eyeing possible expansion into the North American market, an area of Nukote's strength.
"We are very optimistic about the outcome of this partnership, which will add benefit to our global customers, owners and shareholders," he said. "Our first right to equity options in new Nukote production facilities and operations globally is also a great benefit."
Fosroc Group Holdings Ltd, a division of JMHFZco Dubai, manufactures construction chemicals, coating products, sealants and a variety of other construction components, distributing them throughout their global distribution base to more than 100 countries.
The company is a privately-held corporation with annual turnover of $350 million in 2005.
By Robert Ditcham
Gulf News 2006. All rights reserved.
