08 April 2004
DUBAI - With the construction activity in Dubai and neighbouring emirates reaching a crescendo, local production of aluminium extrusion is poised for a major capacity boost to meet a stronger domestic offtake as well as an increasing demand from overseas markets.
Market players estimate that the domestic demand for aluminium extrusion, currently at 35,000 tonnes per annum worth some Dh350 million, is bound for a sustained annual growth of more than 10 per cent given the all-round growth in construction activity in the emirates.
Some of the leading manufacturers, also facing growing demand from overseas markets, including Europe, West Africa, Canada, and South East Asia are pressing ahead with capacity expansion to cope with the requirements.
"The lower production cost in the UAE for a whole range aluminium extrusion, including architectural profiles, normal and thermal break for windows, doors and curtain walling, has sparked a big demand for local extrusion which is on par with Western production in processing technology and quality. And with Euro getting stronger, local manufacturers are really struggling to cope with the rising demand from Europe," said a supplier.
Robert Holtkamp, Director of Sales and Marketing of the Dubai-based Gulf Extrusions, one of the leading players in the segment, said while the demand from overseas is expected to rise thanks to UAE's cost advantage, domestic demand will continue to grow for the next several years. "Gulf Extrusions also export extruded aluminium profiles to other AGCC countries, Jordan, Lebanon, India and Pakistan.
At present, despite a strong local production base, the UAE also imports some 20 per cent of its aluminium extrusion requirements from neighbouring countries including Saudi Arabia, Bahrain and Oman.
Holtkamp said Gulf Extrusions Co., a member of the Al Ghurair Group of Companies, is geared for capacity expansion to meet a projected 15 per cent annual surge in demand. "We have chalked out a phased expansion programme. We will invest some $8-10 million in the first phase to install a new press for a capacity addition of some 5000 to 8,000 tonnes."
Currently, Gulf Extrusions, operating four presses at its modern plant in Jebel Ali, has an average daily capacity of 100 tonnes of aluminium extrusion profiles in a large variety of designs, most of them tailor-made to customers' request and demands. With a strong local market base accounting for some 60 per cent of the output, the company also enjoys a wide global export reach.
He said the company's growth has been remarkable. From a single press with a rated capacity of 3000 MT per year in 1978, Gulf Extrusions has grown to a capacity of 30,000 metric tonnes per year. "With our own facilities of 4500 tonnes per year for anodising and 7500 tonnes per year for powder coating, we can comply with any customer request."
The company sources most of its raw materials locally. The basic raw material, aluminium extrusion billets, is purchase from Dubai Aluminium Limited. Sulphuric acid is bought from Falcon Chemicals Limited and polyester powder from Jotun Powder Coating while a major quantity of precision extrusion dies purchased within the Gulf. Holtkamp said the company could sharpen the competitive edge of its marketing strategy with the addition of the innovative new Spectrocolor anodising process to their technological strengths. "We are now in a position to offer new aesthetics to our range of aluminium profiles," he said.
DUBAI - With the construction activity in Dubai and neighbouring emirates reaching a crescendo, local production of aluminium extrusion is poised for a major capacity boost to meet a stronger domestic offtake as well as an increasing demand from overseas markets.
Market players estimate that the domestic demand for aluminium extrusion, currently at 35,000 tonnes per annum worth some Dh350 million, is bound for a sustained annual growth of more than 10 per cent given the all-round growth in construction activity in the emirates.
Some of the leading manufacturers, also facing growing demand from overseas markets, including Europe, West Africa, Canada, and South East Asia are pressing ahead with capacity expansion to cope with the requirements.
"The lower production cost in the UAE for a whole range aluminium extrusion, including architectural profiles, normal and thermal break for windows, doors and curtain walling, has sparked a big demand for local extrusion which is on par with Western production in processing technology and quality. And with Euro getting stronger, local manufacturers are really struggling to cope with the rising demand from Europe," said a supplier.
Robert Holtkamp, Director of Sales and Marketing of the Dubai-based Gulf Extrusions, one of the leading players in the segment, said while the demand from overseas is expected to rise thanks to UAE's cost advantage, domestic demand will continue to grow for the next several years. "Gulf Extrusions also export extruded aluminium profiles to other AGCC countries, Jordan, Lebanon, India and Pakistan.
At present, despite a strong local production base, the UAE also imports some 20 per cent of its aluminium extrusion requirements from neighbouring countries including Saudi Arabia, Bahrain and Oman.
Holtkamp said Gulf Extrusions Co., a member of the Al Ghurair Group of Companies, is geared for capacity expansion to meet a projected 15 per cent annual surge in demand. "We have chalked out a phased expansion programme. We will invest some $8-10 million in the first phase to install a new press for a capacity addition of some 5000 to 8,000 tonnes."
Currently, Gulf Extrusions, operating four presses at its modern plant in Jebel Ali, has an average daily capacity of 100 tonnes of aluminium extrusion profiles in a large variety of designs, most of them tailor-made to customers' request and demands. With a strong local market base accounting for some 60 per cent of the output, the company also enjoys a wide global export reach.
He said the company's growth has been remarkable. From a single press with a rated capacity of 3000 MT per year in 1978, Gulf Extrusions has grown to a capacity of 30,000 metric tonnes per year. "With our own facilities of 4500 tonnes per year for anodising and 7500 tonnes per year for powder coating, we can comply with any customer request."
The company sources most of its raw materials locally. The basic raw material, aluminium extrusion billets, is purchase from Dubai Aluminium Limited. Sulphuric acid is bought from Falcon Chemicals Limited and polyester powder from Jotun Powder Coating while a major quantity of precision extrusion dies purchased within the Gulf. Holtkamp said the company could sharpen the competitive edge of its marketing strategy with the addition of the innovative new Spectrocolor anodising process to their technological strengths. "We are now in a position to offer new aesthetics to our range of aluminium profiles," he said.
BY ISAAC JOHN
© Khaleej Times 2004
