Empower and Logstor launch joint venture
Dubai , September 16, 2007
Emirates Central Cooling Systems Corp (Empower) and Logstor have announced a joint venture - Empower Logstor - to set up UAE's largest pre-insulated pipe factory.
Empower, Dubai's leading district cooling will hold 51 per cent with Logstor, the world's largest manufacturer of pre-insulated pipes, taking the remaining 49 per cent stake in the venture, that will become operational next year, said a report in the Gulf News.
The new firm will help service the demand for high quality pre-insulated pipes, especially for district cooling, which is increasingly being seen as the most energy efficient, safe, proven and environment-friendly solution to cool buildings.
'This joint venture, with a capital investment of $25 million, is a new opportunity for Empower to achieve backward integration. It will also consolidate our status as a leading regional player in pipeline systems. Our partnership with a major global brand will help us expand Empower's reach beyond the region,' said chairman of Empower Saeed Al Tayer is quoted to have said in the report.
The size of the regional pre-insulated pipe market is expected to exceed $1.5 billion over the next five years.