Reem inaugurates new facilities in Abu Dhabi

Abu Dhabi: Reem Emirates Aluminum (REA), a member of the Royal Group, yesterday announced the inauguration of its headquarters and factory in the Mussafah industrial area of Abu Dhabi.

The company specialises in the design and manufacture of unitised curtain wall panels, dedicating its full capacity production to the needs of Abu Dhabi's construction sector.

"The plant occupies 80,000 square metres, and has started production since October last year," Derek Bruce, the company's general manager said.

The plant can manufacture 60,000 square metres of curtain wall panels per month. It has been built at an investment of Dh200 million, targeting Dh1.5 billion worth of sales in 2008.

"We are now looking for the suitable land to establish another factory in Dubai, where we have already secured a contract for nine buildings for Al Fajr Properties at the Jumeirah Lake Towers project," Bruce said.

The factory in Dubai is expected to be launched in a year as Reem seeks to capitalise on the huge deficit in aluminium curtain wall panels in the construction sector.

"We are also actively tendering for projects in Qatar, Bahrain, Kuwait, Jordan, and Saudi Arabia, within the context of our regional expansion plans," said Bruce.

Royal Group is the parent company of Tamouh Real Estate, the master developer of 60 per cent of Reem Island, as well as Hydra Properties, along with many others comprising its diversified portfolio.

"We expect the demand in the UAE to stand at 25 million square metres by 2012 compared to the present production capacity of 15 to 16 million square metres, which reflects the tremendous prospects for the company's growth," Bruce said.

REA is also planning an initial public offering at the Abu Dhabi Securities Exchange by 2009 to provide for the necessary capital for the company's overseas expansion plans.

"We do not want to float 55 per cent of the company, and that is why we are awaiting the new companies' law, which will give us more flexibility," Bruce said.

Price Water House Coopers is acting as the manager of the IPO after evaluating the company at Dh1.2 billion.