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New venture looks at early expansion
Eyeing strong growth prospects, the recently-established Emirates Extruded Polystyrene is already considering a major expansion of its production capacity.
01 December 2007
Emirates Extruded Polystyrene (EEP) – which commenced production of insulation materials recently – is already looking at doubling its capacity in a year’s time, buoyed by the enthusiastic response it has received from the market.
EEP, a joint venture company of Dubai Investments and Farha Brothers of Cloisall Company, commenced commercial production of extruded polystyrene sheets (XPS) in early September after a successful trial run and commissioning, infusing a fresh annual supply of 2,500 tonnes of XPS to the UAE and GCC markets.
EEP’s entry is poised to help address the predicted sharp surge in demand for insulation materials within a six-year period ending 2012, spurred by the region’s large-scale construction boom. The operations of EEP would be supervised and monitored by Dubai Investments Industries, which is a wholly-owned subsidiary of Dubai Investments.
“Emirates Extruded Polystyrene has been established in support of the UAE and the rest of the region’s rapid economic growth. Our extruded polystyrene sheets are produced according to the highest quality standards, ensuring excellent performance in any construction project,” says Khalid Kalban, chairman of the EEP board of directors and managing director and CEO of Dubai Investments.
“EEP has invested in top-of-the-line technology and management practices, and boasts a highly qualified staff to maintain the excellent quality of our products and production processes,” he adds.
EEP is gearing up for a robust market performance after also signing an agreement with Cloisall Company for offtake of 50 per cent of the manufactured products. Other reputed local and international dealers have also approached EEP to strike long-term deals. With strong growth prospects, the company has prepared an early expansion plan, aiming to add a second production line that will significantly increase total output of the EEP plant, which sits on a 6,235 sq m plot in Dubai Investments Park in the UAE.
“The company is looking at expanding by doubling capacity in a year’s time,” according to a spokesman for the company.
EEP manufactures XPS under the brand name E-Foam, whose main application is for heating insulation, anti-impact material and major construction elements. Other EEP brands are E-Roof, E-Wall and E-Floor.
Demand for insulation material in the Gulf countries during the period 2006-2012 is expected to top 1.075 million cu m or the equivalent to 37,627 tonnes. The strong demand has been boosted by a UAE Federal Law that enforces the use of energy-saving and environment-friendly building materials in the construction industry, which has made XPS mandatory for the insulation of roofs, walls and foundations, says the company.
“Emirates Extruded Polystyrene has secured environmental compliance in all stages of production, with all residual matter from the manufacturing process recycled with the original raw materials to achieve zero wastage. It is our pleasure to help the region grow economically, and also promote energy-efficient and sustainable means of development,” adds Kalban.
Dubai Investments owns 51 per cent of EEP shares, while Farha Brothers of Cloisall Company has an equity participation of 49 per cent. EEP’s board of directors also includes Ghaleb Farha as the vice chairman and Shukri Muhairi, Majed Farha and Mustafa Kamal Khan as directors.
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