Understanding with the Italian giant PLASCO- Plastic Machinery S.r.l, covering many phases of operations in the amount of half a billion Dirham. The MOU signing ceremony that took place at ARKAN headquarters in Abu Dhabi was attended by board members from both parties in addition to several media personals and distinguished shareholders. H.E. Salem Al Dhaheri, Chairman of Arkan and Mr. Marco Damo President of Plasco had officially inked this MOU to what could only be a mutually beneficial agreement.
The MOU signing with Plasco, a well established Italian corporation that has gained a wealth of experience in plastic materials and possesses extensive knowledge of planning and manufacturing plants, aims to assist in developing the industrial sector of this nation. The two parties will proceed to build a massive plant in the Industrial Zone of Abu Dhabi or in the Arkan Industrial Park to manufacture and sell plastic pipes materials within the MENA (Middle East and North Africa) region.
Since the initial public offering of Arkan PJSC which is chiefly viewed as the premier construction material company in Abu Dhabi, the company has been making quite the debut in the Abu Dhabi Securities Market. With revolutionary results, never to have been reached in such short time in the history of Abu Dhabi Securities Market, Arkan marks a new era for local construction companies.
The General Holding Company owns 51% of the total capital of Arkan Building Material (ARKAN) PJSC, while the rest of its shares are owned by UAE citizens from the private sector. ARKAN has been listed on the Abu Dhabi Securities Market since the 8th of January 2007, and owns 100% of both Emirates Cement Factory in Al Ain and Concrete Blocks Factory in Al Mafraq- Al Ain. ARKAN is working today on establishing a new Industrial Park which will embed the new industrial complex of Arkan-CPC with capital investment of AED 750 Millions to build several factories in the construction and building materials in addition to a logistic company to serve the company.
“The project in itself is a very unique endeavor, so choosing the right partner was our main focus to ensure quality,” said H.E. Salem Al Dhaheri, Chairman of Arkan. “Plasco certainly met our criteria given their record and experience with other high level developments.”
The Arkan-Plasco plant will be fully operational by February 2008, reflecting the high commitment both parties are showing to establish this project. “We are delighted to be able to play such an integral role in the establishment of the plant as it is a significant project for Abu Dhabi” added Marco Damo, President of Plasco. “We are pioneering a product that has not yet been seen in the UAE or the rest of the region. We are using world-leading designers and quality control agencies to ensure that the specification and materials will be of the highest international standards”
“This project will be a continuation to the exceptional economical success the region had witnessed in recent time, as the region’s trade surplus will surpass giants such as China and Japan. The combined surplus of GCC countries estimated to be $585 billion in 2007 will surpass China’s $521 billion and Japan’s $437 billion” added H.E. Salem Al Dhaheri “we are proud to contribute to the economical development of this nation while bringing in new technology, assuring that the UAE is the new financial and economical hub of the region”.
About Arkan
Arkan Building Materials Company P.J.S.C. (“Arkan”) was formed pursuant to Law No. 5 (establishing GHC) dated July 4, 2004, for a 100-year term. On January 15, 2006, Ministerial Decision No.7 of 2006 was issued by the Ministry of Economy, establishing Arkan. Arkan was incorporated pursuant to its Memorandum and Articles of Association and Law No. 8 of 1984, concerning Commercial Companies, as amended, as a UAE public joint stock company. The Company was formed by its sole founding shareholder, GHC, with an initial authorized and fully paid-up capital of AED10 million, divided into 10 million ordinary shares with a nominal value of AED1 each. Subsequently, after its incorporation, Arkan conducted a capital increase on February 6, 2006, to which GHC contributed ‘in-kind’ the businesses of Emirates Cement and Concrete Block Factories, in exchange for 882,500,000 million newly issued shares of Arkan. As a result, the total capital of Arkan increased to AED892,500,000 million and Arkan became the owner of the Portfolio Businesses. The Company’s strategy is to maximize shareholder value by capitalizing on the Portfolio Businesses’ competitive advantages, location and position in the local and regional markets in relation to building materials, (including cement, concrete blocks and tiles, and bags), while pursuing opportunities for organic growth through an expansion in output capacity, market reach and quality and variety of products in the construction sector.
About Plasco
Based in Milan, Italy the company aims at asserting itself not only on the Italian and European territory but also on the international market. This requires more space and more significant skills in order to guarantee more and more efficient and high quality products and services.
Plasco had offered for years to other companies its own experience for the planning and the manufacturing of plants evaluating the plastic materials. Nowadays the company has decided to expose itself directly on the market producing and creating plants for washing, recycling and compounding of the plastic materials. Basing itself on technical acquired knowledge and on highly professional staff, the company strives to realize more and more avant-garde projects; besides a specific market's demand, the company dedicates to the research of new processing technologies to be applied to the more and more sophisticated polymers' market.
