New entrants in the Gulf region’s rubber industry have made the market more competitive, prompting existing players to work harder to retaining their clienteles.

But International Rubber Company (IRC) hopes to deal with the challenge by introducing cost-reduction methods.

There are at least three new plants operational this year in and around the UAE. Exacerbating the problem for local producers is the shortage of the EPDM polymer and higher prices quoted for that and other raw materials.

One way of keeping the turnover effervescent is to drive exports, feels IRC managing director Hashim Al Hashim.

Al Hashim commented that as in 2009 the company was focused this year on exports and plans to expand its presence geographically while simultaneously adding new products to its range.

“We’ve identified potential new products which could be useful to our existing clientele and negotiations are ongoing with suppliers who are world-renowned for quality,” said Al Hashim. The company is holding discussions with Vito and Schlegel of Germany.

A significant development this year was gaining distributorship from Momentive Performance Materials for East Africa. A strategic action plan is being worked out to market IRC products in the African region and a survey is underway which will identify which products have potential there.

View of a section of the factory in Ajman

IRC is also working on developing custom-made specialty products with the US and Europe as target markets.

Modest growth achieved

Notwithstanding a slowdown in general market growth in 2009, IRC was able to meet its target for the year and achieve 11 per cent growth, closing the year with sales of Dh65.15 million ($17.7 million) from the 2008 figure of Dh60.97 million.

Nearly 50 per cent of the company’s business comes from exports to the Middle East, Europe, Africa, Southeast Asia and the Indian subcontinent.

Major issues for IRC aside from new parties in the competition are getting its hands on its dues and the slow pace of progress in some projects.

Still Al Hashim expects 2010 sales to be about the same as in 2009. 

Established in 1995, IRC produces high-quality synthetic polymeric rubber and plastic weather straps and associated products for construction and other sectors.

The product range comprises extrusion profiles in EPDM rubber, silicone rubber and PVC as well as PVC water stops, rubber and silicone rubber moulded products, automotive seals, braided gaskets and specialty sealants.

The company’s offices and manufacturing facilities are located in Dubai Investment Park on a 10,000 sq m plot with a 6,000 sq m covered area.

The IRC plant in Dubai Investment Park

The manufacturing capacity for different products is 210 tonnes for EPDM rubber extrusion, 25 tonnes for PVC extrusion profiles, 150 tonnes for PVC water stops, 15 tonnes for moulding, 100,000 m for polyglide and 25 tonnes for silicone rubber extrusion.

Meeting tough conditions

The company stressed that its products are engineered to meet tough environmental and operational conditions such as those existing in the Middle East. Its profiles meet ASTM, BS, ISO and DIN standards.

Al Hahim believes investments in the latest technologies and production techniques, proper sourcing of raw materials, continuous R&D and developing a professional team have paid off handsomely.

The company uses the continuous vulcanisation technology in the Microwave process. It has collected accolades including the ISO 9001:2000 and the management system certificate from Det Norseke Veritas while subscribing to lean manufacturing practices.  

The company provides sales and technical support for structural glazing projects done with GE-Bayer structural silicone sealants and for insulating glass glazing done with polyurethane/butyl sealants from LJF France, a Total company.