Emirates Extrusion Factory (EEF) has acquired a Dubai-based aluminium factory from AKFA Aluminium and Plastic FZE that will help the company meet the rising demand for aluminium
The 10,000 sqm factory is situated in Techno Park, part of Jebel Ali Free Zone. EEF will start operations at the new plant immediately.
General manager Khalfan Al Suwaidi said, "The new factory will streamline our operational processes and dramatically reduce cost and improve time efficiency to help us escalate overall output."
EEF not only acquired an existing aluminium facility in the UAE but it also procured machinery and new automatic and manual powder coating lines. There is also additional space for capacity expansion with a large plot of unused land included in the deal.
Frost & Sullivan believes this is a good deal for EEF due to the feed stock proximity to the nearby smelters of Dubai Aluminium and Emirates Aluminium, sea port access, the low cost of production and a large customer base for aluminium extruded profiles in the UAE.
The UAE Aluminium Extrusion market is estimated to be in excess of 175,000 Metric Tonnes (MT) which amounts to approximately 35 per cent of the total Gulf Cooperation Council (GCC) demand, growing at a CAGR of eight to nine per cent for the time period 2011-17, according to Frost & Sullivan.
UAE-based EEF is a subsidiary of Masharie, the private equity arm of Dubai Investments (DI).