Clipsal to set up factory in Sharjah

Clipsal, a global electrical and communications company, is spending at least Dh6 million to set-up a manufacturing facility in Sharjah. The factory will be the company's first in the Middle East.

It is expected that the factory, which is expected to be up and running in a year, will supply goods to the regional market.

The Australian company, which had an $18 million turnover in the UAE last year - almost 50 per cent of its Middle East total, already has an assembly plant in Sharjah.

The manufacturing facility is the company's final phase in its regional development, said Lalu Samuel, regional managing director, Clipsal.

"First we come to an area and set up a marketing office and then when we have tested the market and we have grown enough we go ahead with an assembly plant - which we have at Sharjah Airport International Free Zone," he said.

"Our next phase will be to have a manufacturing base - which we will have in the next year." The company, which has about 30 per cent of the UAE's market share, already has 14 manufacturing facilities around the world and about 50 branches.

Sales have been good because of the demand, said Robert Fantozzi, export manager, Clipsal. "The Middle East is very strong because people here want to have products which are future proof," said Fantozzi.

"People here know that if they just put switches in their brand new hotel that they will be one-step behind their competitor."

While taking part in the Middle East Electricity Exhibition - which is being held at the Dubai International Exhibition Centre - the company launched a range of new products, which is expected to boost regional sales by 50 per cent this year.

Samuel said that the Middle East subsidiary is targeting a sales turnover of $60 million this year.

Currently the company assembles about 6,000 products in Sharjah but hopes to increase that to 7,000 this year.

In total, Clipsal produces more than 35,000 products.

Only a small amount of products are being assembled in Sharjah at the moment because it is still a new market, explained Fantozzi. However, as the market grows more products will be introduced for assembling.

Fantozzi added that when major project work is being carried out, extra products are introduced to the customer.