12 Aug 2006
Dubai: Proclad Group, a leading manufacturer of pipes for the oil and gas industry, will invest Dh800 million in its Dubai plant, making the UAE its most important production base.
The company's Dubai Techno Park complex will house a training academy and a research centre.
Proclad is developing the manufacturing facility in two phases, each costing about Dh400 million.
The complex will cover an area of one million square feet when it is fully completed in 2009.
During a third phase of expansion, Proclad will introduce a new product line.
"We are doing some trials on the new product line. We are working with multinational companies to get their approvals and right applications," chief executive officer Yaseen M. Jaffar told Gulf News in an interview.
The site will also house Proclad Academy, which will train GCC and Arab nationals for the oil and gas industry.
"We are setting up the academy in collaboration with a multinational oil company. They have a number of academies worldwide," Jaffar said.
The research and development centre in Dubai will be linked to Proclad's similar existing facility in Scotland, which is the group's oldest factory.
"We are a technology-driven company. We cooperate with many research centres, colleges and universities. Our R&D centre in Scotland deals with other research and development institutes in Europe and America," he added.
Jaffar said the company is still working on the details and estimated costs of the Dubai academy and research centre.
The plant itself will start full-scale commercial production by March 2007.
"It is going to be the largest manufacturing hub for the group," Jaffar said.
Proclad will make about 400 kilometres of pipes per year with diameters ranging between six and 20 inches.
Owned by National Industries of Kuwait, Proclad is also opening a $20-million factory in September in Kuwait to make high pressure valves and wellheads.
Regional expansion
"Our next locations will be in Saudi Arabia and in one North African country. We will be investing about $30 million in Saudi Arabia and $15 million in North Africa," the Proclad chief said, adding that the company wants to have production facilities close to its markets.
Proclad already has factories in Abu Dhabi and Singapore. The company is currently bidding 18 projects, valued from $5 million to $50 million, in the Arab world and neighbouring regions.
Forty per cent of the company's revenues come from the Middle East region. Southeast Asia is its second most important source of revenue, followed by Europe, North America and North Africa.
Gulf News 2006. All rights reserved.
