ARKAN
Corporate Overview
Arkan Building Materials Co. PJSC (ADX: ARKAN), is a public joint stock company specialising in manufacturing of building and construction products in the UAE. Established in 2005, Arkan is 51 percent owned by General Holding Corporation, an entity wholly owned by the Government of Abu Dhabi to promote sustainable industrial activity in Abu Dhabi, with the remaining 49 percent of shares listed on the Abu Dhabi Securities Market (ADX).
Arkan’s vision is to build a large integrated building products business that serves the local and regional construction industries. Arkan’s portfolio companies include Emirates Cement Factory, one of the UAE’s leading cement manufacturers, Emirates Blocks Factories, producer of high quality concrete blocks with locations in Al Mafraq and Al Ain, and ANABEEB a leading manufacturer of plastic pipes (GRP & PVC) and bags. The company is currently constructing Al Ain Cement Factory, which once ready will be one of the largest in the UAE with a capacity of 3.1 million tons of clinker per year and 4.5 million tons of cement. The company is also developing Arkan Dry Mortar, a high-capacity dry mortar plant located in Al Mafraq, which will produce a range of dry mix products. Additionally, Arkan actively partakes in building materials investments across the UAE, with a focus on growth opportunities in Abu Dhabi.
Current Operations
Emirates Cement Factory
Emirates Cement Factory (ECF) in Al Ain continues to be one of the leading cement brands in the UAE, positing revenue of over AED 90 million, for the first half of 2010. ECF has a market share of nearly 7 percent of the total UAR market.
The factory is poised to be supported by further capacity addition in the form of Arkan’s upcoming Al Ain Cement Factory. As in the past, the key to cement dynamics is the manufacture of clinker. In this regard, ECF continues to be well positioned as the only clinker manufacturer in the emirate of Abu Dhabi.
The factory produces three types of cement: Ordinary Portland Cement (OPC) suitable for most construction activities, Sulphate-Resistant Cement (SRC) for use in corrosive environment and Type II Cement suitable for mildly corrosive environments. Total clinker production capacity for 2009 was in excess of 800,000 tonnes. Total cement production was close to one million tonnes.
Block Factories Al Mafraq and Al Ain
Al Mafraq Block Factory’s current capacity is 50,000 blocks per day while Al Ain Block Factory has a capacity of 45,000 blocks per day. Both factories are currently undergoing expansion, which will increase their capacity by an additional 75,000 blocks each. Production at the new capacity is expected to begin in 2011. Sales of concrete blocks are mainly to construction contractors.
ANABEEB Pipe Manufacturing
Anabeeb, established in 1996 and headquartered in Abu Dhabi, is one of the UAE’s largest pipe producers. The company operates high-quality pipe production factories for CC-GRP Pipes & Fittings, GRP Manholes, PVC-U Pipes, LD-PE for drip irrigation pipes, fitting & Multi- Wall Paper Sakes. ANABEEB have pioneered in UAE many of the developments in production technology. This continuing development together with the introduction of the latest techniques and equipment ensures that ANABEEB products are of the highest possible quality. Strict quality control through all stages of production is maintained by ANABEEB’s dedicated in house quality control laboratory. The production facility is certified to ISO 9001-2008.
Key Projects
Al Ain Cement Factory
Arkan is currently constructing a new cement factory on the site of Arkan Industrial Park, Al Ain. This factory, which once ready will be one of the largest in the UAE with a capacity of 3.1 million tons of clinker per year and 4.5 million tons of cement. The project, which involves a total investment of AED 1.3 billion, and is being managed by Jacobs Engineering of the USA and the contractor, is CBMEC of China. Construction of the new factory commenced in June 2007 and production is scheduled to commence in 2011. This will take Arkan’s total annual capacity for clinker production to 4.0 million tonnes and its annual capacity for cement grinding to 5.7 million tones.
New Block Factories
Work is ongoing at Arkan’s concrete block factories, including one located next to the existing block factory in Al Mafraq and another located in Al Ain Industrial Park. The block making machinery is being supplied by Hess in Germany. Each factory is being developed at an investment of around AED 70 million and each will enhance its total capacity with an additional of 75,000 blocks per day. Production is scheduled to commence in 2011 and will take Arkan’s total block manufacturing capacity to around 250,000 blocks per day.
Dry Mortar Factory
Arkan is also developing a dry mortar plant in Al Mafraq for the production of pre-mixed mortars. The project, called Arkan Dry Mortar, will have a production capacity of 1,000 tonnes per day and is being built at a cost of AED 100 million.
The establishment of Arkan Dry Mortar Factory is in line with Arkan’s ongoing capacity expansion programme within the dry mortar products category. The new facility, spread over an area of more than 57,000 square meters, will be Arkan’s first dry mortar plant in the UAE. Construction work at the site has started, and the unit is scheduled to be fully operational by the end of 2011.
Contact Details
ARKAN Building Materials P.J.S.C.
Tel: +971 2 406 0700 | Fax: +971 2 666 6872
P.o.Box: 40307 | Abu Dhabi, UAE
Email: info@arkan.ae | Website: www.arkan.ae