20,000 sqm state of the art facility produces 30,000 tons with increased production efficiencies

GCC architectural coatings market worth an estimated AED 2.5 billion per annum

24 March 2013, Dubai, UAE

Caparol, Germany's number one and Europe's third largest paint and insulation manufacturer, has opened a new production plant in Dubai Industrial City, which will more than double its production capacity enabling it to service the entire GCC region including Saudi Arabia. The 20,000 sqm state-of-the-art facility incorporates a manufacturing plant with a current capacity of 30,000 tonnes per year with provision for further expansion, a dedicated training facility and corporate office segment.

Operating in the UAE as Caparol Paints LLC, a joint venture with Emaar Industries & Investments, Caparol has set a strong track-record of growth since it entered the UAE market in 1998.

Mohammed Saeed Al Raqbani, Chairman of Caparol Paints LLC and CEO of Emaar Industries & Investments, said: "The GCC countries are firmly on the growth track with several large-scale infrastructure development projects being undertaken and progressing rapidly. This presents a tremendous growth opportunity for Caparol, with its unique product range that also focuses on environmental sustainability. The new factory of Caparol further underlines the growth of Dubai's industrial sector and we are pleased to serve as a primary facilitator in driving the development of industries in the region."

Gary Seabrook, General Manager, Caparol Paint LLC, said: "Architectural coatings have strong growth potential in the GCC region, and is estimated to be worth AED 2.5 billion per annum. Our new facility will ensure that we can meet this increased demand from the region, which currently witnesses massive investments in new buildings and infrastructure. Developers are increasingly relying on durable paint and insulation solutions that also meet the building efficiency codes of the regional governments. Caparol's products are a perfect fit to the needs of the market."

Seabrook added the choice of Dubai Industrial City as the location for the new plant draws on its strategic location, midway between Dubai and Abu Dhabi, thus allowing for optimised logistics. In addition to reducing daily transport time by 90 percent, the new location also has reliable power, communications, road and logistics infrastructure, and worker accommodation facilities. The new factory was completed from design to production in less than 16 months.

Abdulla Belhoul, Managing Director of Dubai Industrial City, said: "We are very delighted to welcome the primary paint manufacturers in Europe and one of the top companies worldwide to Dubai Industrial City. Manufacturing is playing an increasingly important role in our economy as we diversify our source of growth, and the launch of Caparol's new production facility and training centre in Dubai Industrial City, will make a positive difference in boosting the manufacturing base in the UAE and the wider region."

The new factory will make the throughput time for all products considerably shorter due to high tech automation. All water, emulsions and powder raw materials are directly charged into the mixing tanks from bulk tanks and silos. The facility also incorporates a full 4-step waste water treatment plant to protect the surrounding environment. Dust collectors and carbon filters further reduce the plant's environmental impact.

Caparol recently became a member of the Emirates Green Building Council, which is working towards making the UAE a global leader in reducing ecological footprint of the built environment by 2015. The company is also a committed member of the Middle East Drymix Mortar Association, aimed at the development of materials that minimise construction time, energy consumption, and maintenance.

The company manufactures various products aimed at sustainable building practices. Caparol   is one of the primary suppliers of ETICS (External Thermal Insulation Composite Systems) in the region, known for its product, CapaTect. Their CapaCare paint range sets a new standard for its environmental performance with each product in the range containing less than 1 g/l (or virtually zero) of Volatile Organic Compounds.

Caparol's strong reputation for quality has secured the company with high profile contracts internationally including the Beijing Olympic Stadium, Berlin's Brandenburg Gate and the Allianz Area, Munich. Closer to home, Caparol has won and completed contracts for Emirates Golf Course villas; the Ritz Carlton, Dubai Marina; Khalidiya Mall, Abu Dhabi; the Canadian Hospital, Dubai; Dubai English School and The Palm Villas, Dubai.

-Ends-

About Caparol:
Caparol develops, produces and markets high quality paints, enamels, glazes, structural coatings, materials for facade and insulation technology. It is the market leader for building paints in Germany, Austria and Turkey and with approximately € 1.4 billion turnover; it is the third largest company in Europe within this business sector.

Caparol is a privately owned company with a 116 year history of success which has come about due to the company's commitment to the sector's enrichment through innovation of quality products that are environmentally friendly and harmless to health.

In the UAE, Caparol Paints LLC is a joint venture between Emaar Industries & Investments and Caparol. The company was established in Dubai in 1998 and currently operates from a state of the art facility located in Dubai Industrial City. Caparol Dubai manufactures the Caparol brands according to the DAW groups' international quality and environmentally-conscious standards.

To contact Caparol: + 9714 3687600, info@caparol.ae, www.caparol.ae

For additional media information:
Robyn Aris
Avant Communication
+9714 3431 645,
robyn@avantcommunication.com

About Dubai Industrial City:
Dubai Industrial City (DI), a member of TECOM Investments, is the largest industrial real estate project in Dubai and is spread across 55 square kilometers (560 million square feet) of land. The industrial destination was established to serve as a catalyst for the growth and expansion of the industrial sector in the United Arab Emirates - especially in light to medium manufacturing sectors with specific emphasis on Machinery and Mechanical equipment, Transport Equipment and parts, Base Metal, Chemicals, Food and Beverage and Mineral Products.

Dubai Industrial City provides a cost effective and efficient business environment together with a number of industry supporting products and facilities including warehousing and logistics solutions, labour villages, vocational training, commercial space as well as a one stop shop for the issue of required licenses and permits.

Dubai Industrial City is strategically located next to the new Al Maktoum Airport (Dubai World Central) and in close proximity to the Jebel Ali Free Zone. The City provides a traffic free environment with direct connections to the Emirates Road, Dubai By Pass Road providing easy and convenient access to global transportation points via road, air and sea. www.dubaindustrialcity.ae

For additional information about Dubai Industrial City, please contact:
Nagy Sedra, Dubai Industrial City,  +97150 459 4252, Nagy.sedra@tecom.ae
Mohammad Shaban, Bell Pottinger, +9714 4336111, mshaban@bell-pottinger.co.uk

© Press Release 2013