24 May 2012
According to Frost & Sullivan, the UAE Aluminum Extrusion market is estimated to be in excess of 175,000 Metric Tonnes (MT) which amounts to approximately 35 per cent of the total Gulf Cooperation Council (GCC) demand, growing at a CAGR of 8 - 9 per cent for the time period 2011-17.. With this strategic acquisition of AKFA Aluminium and Plastic FZE, Emirates Extrusion Factory is poised to be one of the top players in the GCC .
When other regional players are focusing on organic growth (or expansion of existing lines), Emirates Extrusion Factory has raised the bar by investing to buy-out an existing facility in the UAE which is expected to reduce the potential risk in Greenfield expansion. Frost & Sullivan forecasts this to be a fair deal as the feed stock proximity from nearest smelters, sea port access, low cost of production, additional space for capacity expansion and fruitfully a large customer base for aluminum extruded profiles in the UAE will help the Emirates Extrusion Factory.
Also, Emirates Extrusion Factory can focus more on the Non Architectural sectors as the Architectural sector was affected by the real estate slump and recession, which in return hampered the growth of the extrusion companies.
According to Frost & Sullivan, the UAE Aluminum Extrusion market is estimated to be in excess of 175,000 Metric Tonnes (MT) which amounts to approximately 35 per cent of the total Gulf Cooperation Council (GCC) demand, growing at a CAGR of 8 - 9 per cent for the time period 2011-17.. With this strategic acquisition of AKFA Aluminium and Plastic FZE, Emirates Extrusion Factory is poised to be one of the top players in the GCC .
When other regional players are focusing on organic growth (or expansion of existing lines), Emirates Extrusion Factory has raised the bar by investing to buy-out an existing facility in the UAE which is expected to reduce the potential risk in Greenfield expansion. Frost & Sullivan forecasts this to be a fair deal as the feed stock proximity from nearest smelters, sea port access, low cost of production, additional space for capacity expansion and fruitfully a large customer base for aluminum extruded profiles in the UAE will help the Emirates Extrusion Factory.
Also, Emirates Extrusion Factory can focus more on the Non Architectural sectors as the Architectural sector was affected by the real estate slump and recession, which in return hampered the growth of the extrusion companies.
Perspective by: S Venkatesan, Director, Metals and Minerals Practice, Middle East, North Africa and South Asia, Frost & Sullivan
© Press Release 2012
