MANAMA: INOVEST announced it had acquired a substantial stake in a leading composite industrial manufacturing company based in Kuwait.
The company is currently one of the only specialised regional manufacturer of wood plastic composite (WPC) products with a wide range of business-to-business and business-to-customer real estate, design and construction applications.
This is in line with INOVEST’s three-year strategic plan with focus on investment diversification and sourcing of income generating opportunities.
The investment into this niche industrial manufacturing sector, which is valued at $4 billion globally, comes on the back of clear demand drivers in Kuwait and Bahrain from the construction and contracting industries, and is further supported by environmentally friendly government policies which encourage WPC usage over that of wood.
To date, the Kuwait-based operations manufactures both retail and commercial use WPC products such as those used in decking, fencing and cladding, as well as other interior design and finishing requirements in larger-scale construction projects. The company has rapidly built a track record and a solid footprint in Kuwait, and with the investment from INOVEST will target growth and expansion of the business primarily in Kuwait and Bahrain, and in due course the wider GCC region.
INOVEST chief executive Yasser Al Jar said, “We are very pleased to be signing off on this transaction and including it within our private equity portfolio. It is a clear reflection of INOVEST’s diversification strategy in terms of both sector and market exposure. Moreover, it meets our objective of undertaking income generating investment deals.”
Mr Al Jar added, “We expect to conclude the acquisition formalities by the first quarter of 2020 and work closely with our partner to realise the company’s substantial growth potential. With criteria such as extensive hands on expertise, as well as strong financial backing coming together, we aim to grow and strengthen the advantage of being a first mover and market leader in the composite manufacturing industry within Bahrain and Kuwait.”
INOVEST’s chief investment officer Talal Al Mulla said, “The investment opportunity before us is positioned on strong existing demand for WPC products in a local and regional market with a noted shortage of supply of a proprietary-based formula for a high-quality WPC product of this kind.”
Mr Al Mulla further stated, “WPC products come with their own impressive list of attributes from being anti-corrosive, flame and water retardant, having longer term resilience, as well as far lower cost of production in comparison to counterpart products. These attributes are key to the growth potential of the WPC market in Bahrain and Kuwait. We are determined to harness this potential, to expand and scale up production within the coming year, to enter new markets, and to diversify the product offering towards ultimately becoming the supplier of choice for WPC products in the Mena region.”
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