Economic growth in the region is driving demand for glass

Emirates Float Glass (EFG), a subsidiary of Glass (wholly owned by Dubai Investments), says construction work on its world-class manufacturing facility in Abu Dhabi is progressing as per schedule with the last few months having witnessed a huge momentum of activity with respect to civil, structural and machinery works.
The major equipment and utility modules have arrived on site and installation is in progress for all process equipment. The synergy of integration and coordination with various agencies involved in this prestigious project has been exceptionally intensive and successful thus far, says ND Mohanty, general manager, EFG. The plant is expected to be in operation this year delivering high-quality float glass products.
The company has embarked on a second phase of expansion and recently signed a Dh575 million ($156.4 million) contract with Italian engineering firm Ianua SpA for the construction and supervision of its second float glass manufacturing facility in Abu Dhabi. The project is being set up with a technological licensing agreement with PPG, USA.
The construction of the new plant, which complements the company’s existing production unit in the Abu Dhabi Industrial City, will enable Emirates Float Glass to become the largest single-location float glass manufacturing facility in the region. The two factories, covering a total area of 320,000 sq m, will have a combined production capacity of 1,200 tonnes per day.
The product range will encompass meeting varying needs of glass in the architectural, automotive, decorative and special applications categories. Thickness will range from 2 mm to 12 mm. The glass will be produced in various colours including clear and some will come with coatings.
Emirates Float Glass was founded with a vision to become the largest manufacturer of its kind in the region, and the launch of this second production unit marks a significant step in realising its strategic objectives. This expansion project will help to considerably boost EFG’s business readiness and allow the company to quickly and efficiently cater to the diverse needs of its growing customer base.
“Over the last few years, world demand for float glass has been growing by roughly 4.2 per cent per annum,” believes Mohanty.
He says the growth is fuelled by demand for building, automotive and specialty glass in the Middle East region, which in turn is driven by economic growth. “In the last 20 years, float glass demand has outpaced real GDP growth. With expansive growth in the UAE and GCC’s real estate sector, a world-class glass supplier who could meet the exacting standards of the regional market was a pressing need,” observes the official.
“Demand in float glass is increasing with exponential growth in the construction industry. Recognising this need as early as 2003, Dubai Investments started the ground work and undertook research on converting this business potential to eventual reality. Having done all the diligence, it decided to incorporate EFG as a separate entity in Nov 2005. Thus this project, a brainchild of DI, will to a large extent address demand and growth forecasts of EFG in the region.”
Under Phase I of investment, a fully operational plant with an installed capacity of 600 tonnes per day is being commissioned. However, as per the roadmap of growth strategy, the second phase is also underway simultaneously with an additional installed capacity of 600 tonnes per day offering together a basket of contemporary products.
The next phase will focus on further backward and forward integration to build a cluster of product segments. The total committed investment till date is in excess of Dh1.5 billion at the Abu Dhabi complex, says Mohanty.
The project is being set up with a long-term association and technological licensing agreement with PPG, USA. Technology and plant will be supplied by the world-renowned turnkey contractors in this segment, Ianua from Italy.
Float glass is made from a combination of several ingredients such as sand, soda ash, dolomite, limestone, salt cake, and cullet.
 “The production of float glass is highly technology-intensive and therefore needs contemporary design for machineries. We have selected the world’s most advanced machinery suppliers for ensuring the highest level of quality standards along with industry specialists at all levels of the organisation. To name a few Zippe, Cnud, Grenzebach are some of the world-renowned suppliers associated with this prestigious project,” says Mohanty.
Silica sand, the major raw material for float glass and accounting for about 60 per cent of the total weight of all materials, will be imported from the Middle East states of Iran, Oman, Jordan, Egypt and Saudi Arabia.  Other raw materials, including soda ash, dolomite, limestone and feldspar, will be imported from different places. 
Commenting on EFG’s market strategy, Mohanty says “Currently we are targeting the ME, with more focus on local demand. We are keeping options open for exports and have built in capability and infrastructure to meet global supply standards.”