Gulf Extrusions, the UAE-based pioneer and market leader in aluminium extrusion in the GCC, is upbeat following success brought on by a booming construction market in the region.

While planning expansions to meet the current needs of the market, it is looking at the future with a broader global vision.
As a first step, the company has set in motion plans to increase capacity at its Jebel Ali manufacturing facility to over 55,000 tonnes per year with the purchase of two new aluminium extrusion presses.
The company, a member of the Al Ghurair Group of Companies, is investing over Dh120 million ($32.6 million) in the new presses, which are being sourced in Germany. The first press will be operational by August 2005 and the second in October 2005.
“In the 27 years of its presence in Middle East markets, Gulf Extrusions has distinguished itself as a leading producer of top-quality aluminium profiles. Our profiles have successfully met and exceeded all international standards. This has resulted in a rapid increase in international demand for Gulf Extrusions’ profiles,” says Robert Holtkamp, director of sales and marketing.
“In 2003-2004, we succeeded in capturing an important market share for aluminium profiles in many global markets. Our current manufacturing facility is already operating to full capacity. We are now investing into new presses to meet potential demand.
“Dubai is growing very quickly and with it we are also growing very fast,” says Holtkamp. “We will be the biggest extrusion plant in the Middle East by 2006 and by 2008 the biggest single-owned extrusion firm in the world.”
In the international arena, the company plans to build upon its recent successes in Europe, West Africa, Asia and Canada. The company has identified European and South-east Asian markets as particularly high-growth areas.
“Gulf Extrusions is already leading the aluminium extrusion sector in the Middle East. We feel the time is right for the company to takes its place among the global market leaders,” continues Holtkamp.
“In this quest, our effort is to increase capacity and invest in improved quality products. Acquisition of the new presses will equip us to optimise our export potential, as well as to open new markets for our exceptional profiles,” added Holtkamp.
His ambition is strengthened by the achievements of the company and the strategy charted out for the future.
Gulf Extrusions’ production capacity increased from 21,000 tonnes in 2002 to 30,000 tonnes in 2004, a 30 per cent growth. Capacity is expected to grow another 20 per cent to reach 36,000 tonnes this year and 55,000 tonnes in 2006. By 2007/08 the plant will produce 85,000 tonnes, making it the biggest single-owned extrusion company in the world.
Gulf Extrusions produces aluminium sections in mill finish, silver, bronze, gold and colour-anodised and powder-coated finishes.
Modern processing equipment and techniques permit the company to produce a range of over 7,000 profiles. These vary from architectural sections to components for household items, AC grills and customised products
Holtkamp is proud of the quality of the product that the company produces. “We are supplied entirely by Dubal and are the biggest customer of the company. Since Dubal is regarded highly worldwide for the quality of the raw aluminium it produces, it makes a lot of difference for our products.
“The company realises that to maintain quality we have to buy quality. We have invested in state-of-the-art machinery, bought from Germany. We invest in quality people as well,” he says.
On the company’s global ambitions, Holtkamp says making proper investments is the first step in this direction.
“You also have to guarantee quality products. I can say without being arrogant that the quality we produce is better than anyone’s in Europe.
“We have to bring in qualified technical and marketing people who know what they talk about. People who are willing to invest in the company as much as we invest in them.”
Better networking and knowing people and markets are also key for market expansion, he says.
“Apart form all these, you have to be competitive also. People confuse us with low-labour-cost countries. Compared to Europe, we are very competitive, but we are not a low-price extrusion company. We provide quality at a fair price,” reiterates Holtkamp.
The company’s main market is still in the UAE.  Bahrain, Qatar and Saudi Arabia are also booming and Gulf Extrusions plans to set up offices in these countries. Europe and the other markets are looked after by agents or the company deals directly with customers.
“We are in the process of increasing our turnover in these markets and as sales grow we will invest in different countries. We might even consider buying extrusion plants,” says Holtkamp.
The company’s strategy for the future involves introduction of new blood; redefining and rethinking of the company’s plans and aggressive sales.
The company, which had enjoyed about 60 per cent market share in the UAE in 2002, has seen its slice decline in spite of increasing production due to the sudden growth in demand. “The market grew from 30,000 tonnes in 2003 to 60,000 tonnes in 2004 and in 2005 it is estimated to rise to 90,000 tonnes. Our share has come down to about 20 per cent because of the soaring demand,” says Holtkamp.
 The local and GCC segment put together accounts for 70 per cent of Gulf Extrusions’ production. Non-GCC Middle East, Europe and Asia account for the other 30 per cent.
“We are developing the European market, but there is a long way to go,” admits Holtkamp.
The company’s cautious approach to the booming market is evident from its plans to actively explore newer markets. “One of the reasons why we want to find foreign markets is that the Middle East is at the moment booming. But no one knows how long it will stay so. There will come a time when the market will decline and we need different regions to fill the gap.
“By entering different markets we also diversify our products. It’s a kind of programme for the future.”