
Rubber World Industry, the sole manufacturer of rubber insulation products in the UAE, plans to expand its production facilities three-fold in five years to meet surging demand in the wake of ongoing multi-billion-dollar construction projects.
The company is investing Dh90 million ($24.5 million) on three-phase expansions to raise production capacity up to 3,000 container loads per year from 1,000 by the year 2011 and to retain its monopoly in the UAE and other GCC markets.
Mahmood Shakhani, managing director of the company, says: “We have selected our production site in Umm Al Quwain to set up an additional manufacturing facility in case demand goes up further.” The company has 10 production lines to manufacture rubber insulation products in 300 different sizes. It claims its insulation pipes and sheets meet 95 per cent of the requirements of local and regional markets. The company exports rubber insulation systems to more than 37 countries, including the US, Germany, Russia, Canada and Singapore.
Established in the Ajman Industrial Area, Rubber World Industry is only the second manufacturing facility in the GCC region after Saudi Arabia. Since 1995 it is helping meet demand from the oil and gas fields and construction shipping and auto industries.
Its Gulf-o-flex brand is well regarded as a rubber insulation product, Shakhani says.
It has been used in projects including Ajman Complex, Silver Sand, Nakheel’s Palm Island, China Town Phase IV, International City, Discovery Trend and Abu Dhabi University’s New Campus.
“There are only seven rubber insulation plants in the world and the UAE is among those few countries. Rubber World not only meets local demand but also earns foreign exchange by exporting rubber insulation products,” Shakhani says.
The company has won the best exporter award in Ajman several times. It imports major raw materials from Saudi Arabia, Korea and India. Shakhani indicated the company was doing well despite high prices in recent years. He explained that rubber insulation was a petrochemical product and prices remained on the higher side due to the bullish oil market, but that end users realised the situation and accepted the price increases.
The official said the company had received much support from the Ajman government and the emirate’s business chamber for setting up “a rare business.”
A key to the company’s success was the continuous effort made to offer the most appropriate insulation system with a perfect balance of the cost-result ratio, says Shoaib Burney, general manager of the company.
With the expansion in facilities, Rubber World hopes to penetrate new markets beyond this region.