UAE firm eyes Gulf market for raised-floor products
SHARJAH – Floor System Company, a Sharjah-based manufacturer of raised-floor products, has made significant progress in introducing its green productw in the Gulf region, its managing director said.
The company, which has a four-and-a-half decade of experience in the sector from its mother company — Nesite Floor System of Italy — is looking at expanding its operations in Saudi Arabia and Qatar in the wake of massive development projects as well as growing demand and awareness about the advantages of raised floors in residential and commercial buildings. “We have successfully introduced a ‘Made in UAE’ product in the region and received a tremendous feedback in the past two years,” Augusto Di Pietro told Khaleej Times in an interview. He said massive development projects are under way in the Gulf and his company has received some major orders from the region. “We won a major order in Saudi Arabia in July for the installation of the world’s biggest raised floor in Riyadh. The $667 million project belongs to the public pension agency of Saudi Arabia and we got the $10.5 million contract in the first phase of the project to install the biggest raised floor in the world.” “The project has become a very good reference to introduce raised-floor products in the region. We are setting up a country office in Saudi Arabia along with a dedicated team to explore the potential of the biggest market in the GCC.” In reply to a question, he said Qatar is another strong potential market for the company’s raised-floor products in the wake of massive infrastructure and development projects launched in the country. “We see strong demand in Qatar and supervise the market from our regional base in the UAE.” Di Pietro also acknowledged a few projects in Kuwait, but ruled out any major orders in the coming days. “We have secured some orders in Kuwait, Oman and Bahrain, but the company doesn’t expect any major development in these countries.” In reply to a question about the UAE, he said there is strong potential in the local market as many construction projects are coming online in 2012. “Dubai is working again on development projects while Abu Dhabi has also initiated massive construction projects that will raise demand for our environment-friendly products in the country.” About expansion in North Africa, he said the regional market is mainly being supervised by the mother company in Italy. “We also got some orders in Yemen and Nigeria. We have been exporting our products across the Middle East and Africa by taking advantage of our strategically-located manufacturing facility in Hamriyah Free Zone, Sharjah,” he added. Business growth
Di Pietro said Floor System is one of the three leading firms in the raised-floor industry. It has recorded “significant growth” in business since it launched operations in May 2009. He said the company received five times more orders this year and expressed his hope that 2012 will prove a decisive year for business growth in the region. To a question, he said there is no major impact of the so-called Arab Spring on the company’s business in the region. “The company’s turnover recorded 25.5 per cent growth in 2010 while its sales surged 58 per cent this year following expansion in the region.” In reply to a question about the company’s planned Dh70 million expansion at its manufacturing facility at the Hamriyah Free Zone, he said phase one involving Dh18.2 million investment has already been completed. However, the company blocked the expansion of second phase costing Dh44 million investment in order to increase the productivity of phase one. “We blocked phase two expansion to improve production capacity in phase one from 600,000 square metres per year to 800,000 square metres per year.” International expansion plan
Di Pietro said China was dominating the raised-floor industry, but the company has successfully introduced its “Made in UAE” product in the Chinese market by taking the advantage of its competitive price range. “We have captured a good chunk of the Chinese market by offering a European standard product at competitive rates.” Di Pietro also sees South Korea as a strong potential market. In reply to a question about expansion in India, he said it will take time. “India is a huge market and we will introduce a different business model in the country by launching tailor-fit products to cater to the needs of customers. The Indian market will ensure 20 years of continuous business once we begin operations at full strength.” To a question, he said the initial feedback about raised-floor products in India is not good enough to set up an independent manufacturing facility in the country. “There is not much demand of our product at the moment to establish a production unit in India.” UAE-Italy trade
Di Pietro, who is also a board member of the Italian Industry and Commerce Office in the UAE, said bilateral trade picked up momentum this year and will regain the past glory in the coming days. He said Italy is the second largest trading partner of the UAE in Europe after Germany. Bilateral trade reached Dh30 billion in 2008, but declined to Dh22.5 billion and Dh16.4 billion in 2009 and 2010, respectively, in the wake of the global financial crisis. “Trade between the two countries is again picking up following exchange of frequent official delegations. It recorded an increase of 22 per cent in the first quarter of 2011.” Di Pietro was of the view that bilateral trade and investment will receive a boost following growing interest of Italian entrepreneurs in the UAE. He said concentrated efforts by the Italian embassy, consulate, trade commission and chamber of commerce will help regaining the past glory by boosting the bilateral trade relations in the years to come.