Australia's Clipsal, a maker of electrical and communications components, is planning to set up a Dh6 million ($1.6 million) factory in Sharjah.

The firm, which makes more than 35,000 products, says the factory will be its first in the Middle East and is aimed at supplying the regional market, the Dubai press reported. Clipsal says it has about 30 per cent of the UAE market. Last year's turnover was $18 million - almost half of its Middle East total. This year, the Middle East subsidiary is aiming for sales of $60 million.

Regional managing director Lalu Samuel said the firm already had an assembly plant at Sharjah Airport International Free Zone. The company assembles about 6,000 products in Sharjah but hopes to increase that to 7,000 in 2003.

There are 14 Clipsal manufacturing facilities around the world and about 50 branches. The company has launched a range of new products aimed at raising regional sales by 50 per cent this year.