UAE-based Al Rashed Peikko said its sales and production unit, Peikko Gulf, has started building a new factory and warehouse premises on an industrial plot in Ras Al Khaimah, the UAE, at an investment of around €4 million ($4.7 million).

Al Rashed Peikko is a joint venture between Peikko Group Corporation, a global supplier of slim floor structures and connection technology for precast applications, and Rashed Abdul Rahman Al Rashed & Sons Group, a leading investment, trading and industrial conglomerate in Saudi Arabia.

The new 11,500-sq-m factory and warehouse will come up on an industrial plot located in Ras Al Khaimah. The land leasing agreement for the plot was signed in October 2017, said the company in a statement.

Peikko’s current factory and warehouse premises in Ras Al Khaimah are located near the new plot. The new factory consists of over 3,000 sq m of production and warehousing space and includes modern office facilities.

Al Rashed Peikko said the factory is likely to be operational during the first quarter of 2019, it added.

The growth of Peikko’s operations in the Middle East has been remarkable in the past years and the demand is constantly increasing, said a senior official.

"Operating in the Gulf region from the strategically important location of Ras Al Khaimah has been an excellent choice for Peikko," remarked Peikko Group Corporation CEO Topi Paananen.

"The new factory will enable large-scale production required for the massive projects in the area, such as Sharjah Waterfront City in the UAE and a Ministry of Interior housing project in Saudi Arabia. Local presence is crucial in order to fulfil our customers’ tight delivery schedules," noted Paananen.

"The factory will use the latest technology and automation in order to enhance connection item and Deltabeam Slim Floor Structure production capacity, and strengthen manufacturing with an optimal layout for increased operations and possibility for future expansion," he added.-TradeArabia News Service