Dubai Investments PJSC (DI) has announced the launch of Glass LLC, its new corporate arm dedicated to meeting the growing needs of the regional glass industry. Glass LLC is also the first glass holding company in the Middle East.
Glass LLC will incorporate the four DI subsidiary companies: Emirates Glass LLC, which is one of the largest processors of flat architectural glass in the region; Emirates Float Glass, the UAE's first integrated glass manufacturing and processing facility being built in Abu Dhabi; Lumiglass Industries, makers of automotive and architectural laminated glass products; and the recently-acquired Saudi American Glass Company, which is one of the Middle East's largest glass manufacturers.
"The unprecedented growth in the regional real estate, automotive and industrial sectors has generated massive demand for high-performing, eco-friendly and technologically superior varieties of glass. Industry estimates put the size of the GCC glass market at 1.1 million tonnes. However, current supplies stand at 150,000 tonnes while future supplies are projected at 450,000 tonnes, leaving a shortfall of 650,000 tonnes," said Khalid Kalban, Managing Director and Chief Executive Officer, Dubai Investments.
"Dubai Investments' new arm, Glass LLC has been formed in order to cater to the increasing demand for glass products in the region, particularly from the booming construction and real estate sector. In the UAE alone, the construction industry's expenditure on infrastructure and real estate projects is expected to reach AED 850 billion over the next five years. Similar large-scale projects are being built across most of the GCC states, which will result in projected expenditure of AED 31 billion on glass products alone," he added.
"Dubai Investments has considerable technological know-how and experience in glass-manufacturing and will exploit this expertise to bring innovative products into the market. Glass LLC will focus on developing the regional glass industry and will further contribute to DI's expansion activities in 2007 as in the near future more glass companies will be added," he observed.
Jerry Dowling, General Manager, Glass LLC and Emirates Glass said: "Glass LLC will bring Dubai Investments' glass manufacturing facilities under one corporate umbrella, promoting co-ordination in their activities, monitoring expansion plans and regulating production output. These companies are making considerable investments in enhancing capacity and adding new products in order to meet the surging demand for glass products. The formation of Glass LLC will ensure smooth supplies and help to bring innovative products into the regional market, meeting the evolving needs of planners and developers and thus contributing to the growth of the glass industry in the Middle East."
"To meet the enormous challenge of such a rapidly growing market, Emirates Glass recently invested AED 100 million in a huge expansion programme to increase capacity in glass-tempering, double-glazing and cutting which includes edge-working and drilling, and to meet the demand by autumn of 2007 for highly complex glass types now commonly seen in airports, shopping centres, hotels etc. The company has already bagged projects for supplying seven million square metres of glass to projects in the region."
Jerry added "Lumiglass plans to expand into manufacturing extra large windscreens for big trucks and buses and is developing a separate bullet resistant glass manufacturing division. The company is also developing armoured cars in collaboration with UAE's Steadfast Protection, Ultimate Armouring in Ras Al Khaimah, Iraq's Absolute Armouring and Xtreme Defense Systems from Pakistan. Lumiglass caters mainly to the markets in Saudi Arabia, Qatar, Kuwait, Syria, Iraq, East Africa and Pakistan."
Emirates Float Glass (EFG) LLC, will have an annual production capacity of about 160,000 tons of various glass products. The plant will have a daily production capacity of 600 tons of clear molten glass per day with the product mix matching the contemporary needs of the architectural, automotive and other segments.
Dubai Investments' recently-acquired subsidiary, Saudi American Glass Company (SAGC) is one of the Middle East's largest glass manufacturers. It supplies more than three million metres of glass to the regional market annually, where demand for high performance glass at present stands at 11 million square metres against a supply of two million square metres. Dubai Investments' acquisition of SAGC adds value to Glass LLC and will enable the holding company to extend its presence over a sizeable portion of the market once it is restructured by Dubai Investments.
© 2006 Al Bawaba (www.albawaba.com)
