Danube Building Materials plans to invest Dh50 million ($13.61 million) in the construction of a new facility in Ajman.
The facility, which is set to commence its large-scale operations later this year, aims at increasing its production volume to address the mounting building material requirements in the Gulf region.
It is expected to supply high-quality construction materials to major projects in the emirate, including Emirates Commercial City, Ajman Eye City, Al Helio Downtown, Al Zorah Beach project, Marmouka City, Wafi City and Ajman International Airport, along with other projects in UAE.
As the demand for grade ‘A’ building materials continues to drive-up regional construction costs, which have risen by about 30 per cent in the past 12 months, Danube has recognised the need to establish a new hub to add to its factories in China, Bahrain and the UAE.
The new plant will span 120,000 sq ft in Ajman’s Al Jarf area, where high-quality wood products, laminates, multi-density fibreboards (MDF), steel, aluminium, glass, hardware and sanitary solutions, flooring, ceilings and door and kitchen fixtures will be manufactured in bulk.
“Our expansion into Ajman, which closely follows the recent launch of our plant in China, is a testament to the rapid pace of growth pace at which we are moving to leverage the booming construction market in the region,” said Danube Building Materials chairman Rizwan Sajan.
“The fact that Danube is the first company to establish a dedicated facility for top-grade construction materials to service the many multi-billion-dirham projects planned for Ajman reflects our confidence in this emirate, and highlights our commitment to supporting the growth of the regional market,” he said.
Danube identified Ajman as an ideal location for its new facility due to the massive infrastructural developments being undertaken in the emirate in addition to its conveniently accessible location.
The total investment in Ajman real estate crossed the Dh400 billion mark in 2007, with the launch of waterfront ventures, high-end commercial projects and budget residential houses strengthening its repute as the newest real estate destination in the UAE.
The company is also targeting the growing number of high-profile projects that are being constructed in Ajman, which will largely benefit from the availability of high-quality building materials within close proximity to the construction site.
“The burgeoning opportunities in Ajman have motivated us to undertake this massive investment, which we expect will mirror the success of the emirate especially on the real estate front. With the current economic uptrend across the region, we are gearing up to develop and offer more top-quality products and further expand our operations,” said Sajan.
Danube is one of the largest building suppliers in the UAE and the region with an extensive portfolio of 10,000 selections ranging from MDF, plywood, timber, laminates and veneers to sanitary fittings, hardware, ironmongery, aluminum and glass among other things.
