14 Aug 2006

Sharjah: Indian firm Visen Industries is setting up the region's biggest polymer emulsion plant in Sharjah's Hamriyah Free Zone with an investment of Dh110 million.

Visen Polymers FZE, the Indian company's UAE subsidiary, is targeting an annual turnover of $100 million in the first full year of operations, Visen chairman Vijay Nair said yesterday.

"When our output reaches 200,000 tonnes, the turnover will also double," he said, adding the company would supply polymer emulsion to paint manufacturers in the Middle East and export to Africa and Europe.

The plant's first phase is expected to cost Dh77 million and, upon completion in the second-quarter of 2007, it will provide a capacity of 100,000 tonnes per year.

Another 100,000-tonne output will be added in the Dh33 million second phase expansion after two years.

The entire facility will cover an area of 77,000 square metres.

"The paint industry is growing at a fast rate in the Middle East and demand for our product is rising at 20 per cent per annum," Nair said.

The company will face competition for market share from rivals in the UAE and Saudi Arabia.

The Sharjah plant is Visen's first foreign facility and its production capacity will be more than the combined output at the company's two existing and two planned plants in India.

Nair said raw materials imported from suppliers in Indonesia, Singapore, Japan and the US will be directly transferred to the plant from the port via a pipeline.

Port access

"This is the largest project in the Middle East. We could not have such an excellent port access in India," he said.

Hamriyah Free Zone director-general Rashid Al Leem said the zone currently has 1,700 companies representing investors from 92 countries.

A drum manufacturing unit and a storage area able to hold raw materials for two months' requirements will also be part of the complex.

Visen is also exploring a joint venture project with Japan's Sumitomo Corporation, which has a two per cent stake in the company's India operations.

Gulf News 2006. All rights reserved.