Corrected: EEP opens 2,500 tonne/year XPS plant in Dubai

12 September 2007 16:12  [Source: ICIS news]

Correction: In the ICIS news story headlined "EEP opens 2.5m tonnes/year XPS plant in Dubai" dated 12 September 2007, please read in the headline "2,500 tonne/year" instead of "2.5m tonnes/year". Also, please read in the third paragraph ..."initial capacity of 2,500 tonnes/year"... instead of ..."initial capacity of 2.5m tonnes/year. A corrected story follows:

 

DUBAI (ICIS news)--Emirates Extruded Polystyrene (EEP), a joint venture of Dubai Investments and Farha Brothers of Cloisall Co, has started production at its plant in Dubai, the company said on Wednesday.

 

The new plant started commercial production of extruded polystyrene sheets (XPS) in the first week of September after a successful trial run and commissioning.

 

The plant would have an initial capacity of 2,500 tonnes/year and produce insulation materials for markets in the United Arab Emirates (UAE) and the other five states of the Gulf Cooperation Council (GCC).

 

“Our extruded polystyrene sheets are produced according to the highest quality standards, ensuring excellent performance in any construction project,” said Khalid Kalban, chairman of the EEP board of directors and managing director and CEO of Dubai Investments.

 

EEP's entry is poised to help address the predicted sharp surge in demand for insulation materials within a six-year period ending 2012, spurred by the region's large-scale construction boom.

 

EEP manufactures XPS under the brand name E-FOAM, whose main application is for heating insulation, anti-impact material and major construction elements.

 

The company said that its early expansion plan aimed to add a second production line that would significantly increase total output of the EEP plant, located in Dubai Investments Park.

 

Demand for insulation material in the GCC during the period 2006-2012 is expected to exceed 1.075m cubic metres, the equivalent of 37,627 tonnes.

 

The strong demand has been boosted by a UAE federal law that enforces the use of energy-saving and environment-friendly building materials in the construction industry, which has made XPS mandatory for the insulation of roofs, walls and foundations.

 

EEP has signed an offtake agreement with Cloissall Co for 50% of the manufactured products.

 

EEP’s operations would be supervised and monitored by Dubai Investments Industries, which is a wholly owned subsidiary of Dubai Investments.

 

Dubai Investments owns 51% of and Farha Brothers of Cloisall Co has 49%.

By: Anuradha Rao
+65 6780 4359

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