Emirates Glass in deal to buy 20pc EFG stake
Dubai, May 9, 2009
Emirates Glass (EGL) said it has entered into a deal with Lumiglass Industries and Saudi American Glass to secure a 20 per cent stake in the total glass production of Emirates Float Glass (EFG).
EGL is one of the leading processors of architectural flat glass in the Middle East and a subsidiary of Glass, wholly owned by Dubai Investments (DI).
The trio snapped up the EFG stake in a high-profile business deal worth Dh20 million ($5.4 million) annually.
Under the terms of the contract, EGL and sister companies Lumiglass Industries and Saudi American Glass Company will collectively purchase 100,000 sq m of glass from their sister company Emirates Float Glass every month.
Raw clear glass sourced from Emirates Float Glass will be coated and tempered by Emirates Glass and sister companies according to the specifications and requirements of their architects for various construction projects.
The major supply of the order, which amounts to an annual 1.2 million square metres of glass, will go to Emirates Glass.
Ziad Yazbeck, general manager, Emirates Glass, said, “We are very delighted to secure 20 per cent of the production of EFG. By sourcing locally high-quality raw glass, we will be able to provide coated and tempered glass of top-tier quality that will satisfy the demanding requirements and specifications of our valued customers."
"Our longstanding commitment to excellence, maintained by using only the finest materials and the most advanced technologies throughout the production process, has bolstered our reputation as the leading glass coater and processor in the UAE and across the region, and as an important player in the global glass processing industry."
"We are very glad to support our sister companies by providing them with float glass produced with superb craftsmanship and cutting-edge equipment," said Ghassan Mashaal, EFG vice president, remarked.
"We are optimistic that this will be a fruitful relationship among Emirates Glass, Lumiglass Industries, Saudi American Glass and our company which will lead to further collaborative business in the future," he added.
Faisal Rashid, general manager at Glass, emphasised the market implications of the business deal, saying, "This collaboration points to a very active local market for glass and reflects a sustained growth in the demand for the material due to more projects being injected into the construction pipeline."
"This partnership with our subsidiaries further cements our position as a substantial player in the local market," he observed.
Yazbeck pointed out that the orders will be increased due to the joint activities of Emirates Glass and its sister companies, and will be managed through EGL’s state-of-the-art glass processing plant once its new coater is installed by September 2009.
"The facility will boast of a total capacity of 3.7 million sq m of flat glass and will feature a total purchase requirement worth Dh45 million."
"Currently, the equipment is already the largest and most modern in the Middle East, and is able to produce a wide range of high-performance, energy-efficient glass products,” he added.-TradeArabia News Service