Monday 29 November 2021

Belgian-UAE venture creates giant building materials group

DUBAI, October 28, 2021

Belgian group Soudal has announced a strategic partnership with Al Muqarram Industry (AMI), a leading regional manufacturer of sealants, waterproofing products and adhesives for the construction industry, which will see the duo expand their global footprint and product portfolio.
Founded in 1966, Soudal Group is the largest independent European manufacturer of sealants, adhesives and polyurethane foams for industrial and commercial purposes. 
The group has 23 production branches in five continents, sales offices in 45 different countries and employs around 3,654 people worldwide, while AMI has its bases in the northern emirates of Sharjah and Umm Al Quwain.
With this deal, both Soudal and AMI will have a combined international network that spans over 16 countries on four continents, thus making the new entity one of the largest construction material manufacturers in the EMEA Region.
The partnership, which is also the first-ever in the region, comes against the backdrop of a renewed commitment by key stakeholders to raise the standards of infrastructure construction through the use of sustainable construction material as prescribed by local authorities and regulatory bodies in the region.
With a combined product portfolio of six versatile product families at its disposal, the AMI and Soudal Group partnership is expected to grow its market share by 50 per cent in the Middle East region with a global market share of 40 percent over the next 3 years.
As part of the collaboration, Soudal Group has invested an estimated €50 million ($56.2 million) in AMI, resulting in an expected growth capacity of more than 50 per cent over the next two years.
"From a projected sales revenue growth of about 15 per cent to hit the AED150 million mark by the close of 2021, we expect to register 20 percent growth to reach AED180 million in 2022 driven by the expanded production capacity and a wider product portfolio," remarked Safdar Badami, the Managing Director of AMI.
Over the next three years, exports are expected to jump by approximately 40%, with year-on-year growth of more than 20% in most GCC countries, as well as Egypt, Jordan, Morocco, and the East African region.


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