Cosmoplast launches Gulf's first suitcase factory

Cosmoplast, the Sharjah-based plastic products producer, yesterday launched the first suitcase factory in the Gulf. The announcement was made during the Hardware and Tools trade show, which opened at the Dubai World Trade Centre (DWTC). The brand, Herculite, will be designed in-house and will be produced with German and U.S. technology.

Cosmoplast plans to capture 40 per cent of the UAE's Dh15 million market by the end of the year. It recorded a turnover of $74 million and is part of the UAE-based Harwal Group. "We have employed 140 people for this new line, which we are selling initially in the UAE, but will later be exported throughout the Gulf and Africa," said Varouj Takelian, sales and marketing manager, Cosmoplast.

Cosmoplast's initial suitcase production capacity is 8,000 pieces a month, but this will be increased to meet demand. "With the new range, we anticipate total production of plastic products this year of 60,000 tonnes, which should increase turnover to around $80 million," said Takelian. Last year, the company produced 54,000 tonnes of plastic products.

"The Herculite range is pitched at the medium price range and, within the Gulf in particular, 'Made in the UAE' products are now gaining a following and a reputation for quality. "We believe we will be able to significantly compete with international brands, particularly those from Europe, not least because we already have an extensive sales network in place," Takelian said.

Meanwhile, another Hardware and Tools exhibitor, AlBawardi Tools & Hardwares of Saudi Arabia, plans a $1.4 million expansion of its Dammam construction compactors and wheelbarrows factory. "The expansion will increase capacity by 20 per cent which we hope to re-export via our Dubai agent to Iran, Iraq and Africa," Manager Mohammad Sabir Awan said. The company currently turns out around 150,000 items a year. AlBawardi Tools & Hardwares began producing in Saudi Arabia three years ago with a $5.4 million capital investment in its factory. Hardware and Tools 2001, which is organised by EPOC International, runs at the DWTC until March 22. It features exhibitors from 23 countries and five national pavilions