Reem's Mussafah unit looks to IPO for expansion
One of the biggest factories in the UAE was opened yesterday at Mussafah by Reem Emirates Aluminium. The company also announced plans for an IPO.
The purpose-built wave-shaped building, which incudes offices, covers an area of 80,000 sq m. The 220m long factory will provide custom-made architectural cladding products with an emphasis on the design and manufacture of unitised curtain wall panels. It will be capable of producing 60,000 sq m of panels a month.
Meanwhile, general manager Derek Bruce said he was awaiting a new law in the UAE that would allow it to sell less than 55 per cent stake. The company's IPO would allow it to expand its operations overseas.
"In the brief time we have been operating we have become the leading producer of unitised curtain wall in the region," said Bruce. "The establishment of this factory will strengthen our local supply chain of curtain wall panels, a much-needed resource especially considering the construction boom being experienced in Abu Dhabi and Dubai."
"We have plans to go global and having the IPO and cash injection will help our expansion," Bruce said.
PricewaterhouseCoopers is advising Reem on the initial public offering, Bruce said, adding that it had valued the firm at Dh1.2 billion.
Sales for the first five months of the year have reached Dh800 million with the firm expected to post sales of Dh1.5bn by year-end as it taps into Abu Dhabi's construction boom.
In addition, REA plans to establish six small factories in Qatar, Jordan and Egypt at a cost of Dh200 million – raising the total investment to Dh1bn. Work on an aluminium factory in Dubai is due to start within three months and a glass processing plant is to be built next to the Mussafah factory.
Bruce said REA's sales were expected to reach Dh500m by the year-end. The firm provides tailor-made designs from scratch without using predesigned proprietary systems. All designs are created in-house by Bruce, who is the lead designer. The production process, which is based around an 80m conveyor belt, has no bottlenecks and the factory is equipped with the latest software. REA's team is made up of experts who have worked with some of the largest curtain wall firms in the world. (With input from Reuters)
The purpose-built wave-shaped building, which incudes offices, covers an area of 80,000 sq m. The 220m long factory will provide custom-made architectural cladding products with an emphasis on the design and manufacture of unitised curtain wall panels. It will be capable of producing 60,000 sq m of panels a month.
Meanwhile, general manager Derek Bruce said he was awaiting a new law in the UAE that would allow it to sell less than 55 per cent stake. The company's IPO would allow it to expand its operations overseas.
"In the brief time we have been operating we have become the leading producer of unitised curtain wall in the region," said Bruce. "The establishment of this factory will strengthen our local supply chain of curtain wall panels, a much-needed resource especially considering the construction boom being experienced in Abu Dhabi and Dubai."
"We have plans to go global and having the IPO and cash injection will help our expansion," Bruce said.
PricewaterhouseCoopers is advising Reem on the initial public offering, Bruce said, adding that it had valued the firm at Dh1.2 billion.
Sales for the first five months of the year have reached Dh800 million with the firm expected to post sales of Dh1.5bn by year-end as it taps into Abu Dhabi's construction boom.
In addition, REA plans to establish six small factories in Qatar, Jordan and Egypt at a cost of Dh200 million – raising the total investment to Dh1bn. Work on an aluminium factory in Dubai is due to start within three months and a glass processing plant is to be built next to the Mussafah factory.
Bruce said REA's sales were expected to reach Dh500m by the year-end. The firm provides tailor-made designs from scratch without using predesigned proprietary systems. All designs are created in-house by Bruce, who is the lead designer. The production process, which is based around an 80m conveyor belt, has no bottlenecks and the factory is equipped with the latest software. REA's team is made up of experts who have worked with some of the largest curtain wall firms in the world. (With input from Reuters)
View on Emirates24|7