Dubai: Sharjah-based producer of aluminum and renewable energy solutions provider, Mulk Holdings announced the investment of Dh73 million ($20 million) in Europe.
It has acquired 10 acres in Serbia and will invest $20 million to set up a new production facility there.
"This strategic move is in line with the company's continued expansion programme of establishing manufacturing plants close to demand markets," a company statement said.
The facility situated in Banatski Karlovac, Serbia, 60 kilometres from Belgrade, will have a production facility with a 3,000 square metre office and showroom space and 10,000 square metres of production area which will be built in several phases.
Shaji Ul Mulk, chairman of Mulk Holdings International, said, "Our investment in Europe started last year with the establishment of Alubond Europe in Pancevo, Serbia in a leased facility. We made this investment in Europe during the global recession and surprised many by this aggressive move.
"I am lucky to have able leaders such as Sanja Uzelac and Violeta Svilokos who have shown exemplary commitment and drive to make Alubond Europe a success story.
"We are now encouraged to invest further by acquiring this new asset and increasing our capabilities in Europe.
"Our new expansion will create employment opportunities and further investment to assist the government in its aims to promote international investment and improve the economic standards of the local municipality."
The facility will be equipped with a fully automated three-coat coating line and a high speed double extruder composite panel production line.
The new factory will have a capacity of three million square metres of fire-rated metal composite panels and 10,000 tons of colour coated coils.
Sanja Uzelac, Director of European Operations, said: "Our product range of fire-rated metal composites and coil coatings are becoming increasingly popular in Europe due to our ability to provide the highest quality product with the Alubond brand label being the world's largest composite panel and competitively priced."
The move is a major foray for a UAE-based company in expanding its capabilities in Europe.
This also indicates that the sound and well-managed UAE companies are well-positioned to take advantage of the new opportunities in Europe.
Violeta Svilokos, Sales Manager Europe, said, "Our facility based in Serbia gives us many strategic sales and marketing advantages as Serbia has free trade agreements with the European Union, Turkey, Russia and many other nearby markets, giving us a competitive edge in these key markets."