Global Timber Homes plans Dh2m prefabrication factory in Jebel Ali

Global Timber Homes Group, a New Zealand-based company specialised in engineering timber structures, plans to set up a prefabrication factory in Jebel Ali with an initial investment of about Dh2 million.

"We originally planned to start the facility by the end of 2008, when we had a contract to build 500 over-water homes at The Palm Jebel Ali. But as the project has been put on hold, we had to delay the factory," said David Moon, Manager at Global Timber Homes Middle East.

"It was a huge setback for us when we realised within a week after coming here that the Jebel Ali project was going to be delayed," he said.

According to Moon, it has been quiet in May and June. "The interest has started to come back slowly and I don't think that it will be a lot different next year," he added.

He said enquiries have slowly started coming in from the UAE and other GCC countries.

"We are now looking at other projects both within the UAE and the region," said Moon. "So far this year we have not secured any new contracts here. However, we are negotiating with several clients for projects ranging between Dh10m and Dh150m."

Wood prices have dropped on falling demand as a result of the global crisis.

"They have certainly flattened out and dropped by about five per cent, but not like steel prices. Supply and demand is the crucial determiner of prices," he said. "The drop in demand was seen earlier in the year. But we are seeing some signs of improvement now. Prices have been near stable during the past few weeks and will not fall a great deal more. The market will slowly bounce back by the third quarter of next year."

Moon sees a big market for timber in the UAE. "You don't see a lot of timber structures here and we believe that there is a massive opportunity. However, it takes time to penetrate the market," he added.

He said one of the areas the company is focusing on is providing complete engineering designs in timber on projects such as the Rubies restaurant, which it is constructing at the Al Raha Beach Resort. The construction method involves a structure built on solid sand, which will then be sucked away from the concrete pilings and platform on completion, to create the over-water effect.

The company opened its regional unit in Dubai two years ago. Global Timber Homes is a joint venture between New Zealand-based Macintosh Laminates and Timber Construction Solutions. The firm has entered into a joint venture with Al Ahmadiya Contracting, where the latter provides it with the local business.

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