High-investment projects across the GCC and Asia have bolstered demand for glass which DI’s holding company Glass is in a fine position to take advantage of
Glass LLC, the glass holding company of Dubai Investments PJSC (DI), has targeted aggressive growth across its five subsidiaries in 2015 and aims to boost its 30 per cent market share in the coated glass sector across the GCC countries in line with escalating demand for glass products amidst rampant construction in the region.
The company, which generated combined revenues of over Dh180 million ($49.01 million) in 2014, has announced that sales for its Emicool Solite spectrally selective glass range from its subsidiary Emirates Glass LLC is expected to grow 200 per cent by the end of 2015, riding on market demand for the product that offers optimum control over sunlight.
Similarly, Saudi American Glass (SAG), another Glass LLC subsidiary, is eyeing a 20 per cent sales surge during the year for its high-performance coated glass while Lumiglass Industries – which produces laminated safety glass – is targeting a 15 per cent increase in sales in 2015, with Emirates Float Glass (EFG) looking at impressive growth, locally as well as overseas.
Glass LLC’s joint venture Emirates Insolaire, specialising in the first-of-its-kind coloured solar panels in the world, is targeting sales of over 50,000 sq m for solar panels and photovoltaic models in 2015 as regional governments move fast towards implementing green building regulations and sustainable construction concepts.
The international demand for flat glass is forecast to rise 7.1 per cent per year through 2016 to reach 9.2 billion sq m, as per industry reports. The global market value of fabricated flat glass is forecast to reach $90 billion in 2016, benefiting from the rapid growth of energy-efficient products such as solar control panels, insulation and low E-glass.
Glass LLC subsidiaries also boast of strong order books for projects in the GCC region, which include 250,000 sq m of Solite coated glass for ‘Akoya by Damac’ Apartments and Villas, 80,000 sq m of E-Lite Blue glass for Dubai Design District, 40,000 sq m each for Viceroy Hotel in Dubai, Abdel Wahab Tower in Doha and Heart of Doha projects; 35,000 sq m for Worli Oberoi Hotel in Mumbai and 25,000 sq m for Warsan Development in Dubai, among others.
“The strong growth in the UAE and the region, where higher state spending is rejuvenating the construction industry, means that localised demand for glass is on an upward trend. As a leading company, the glass companies of Dubai Investments are aggressively aiming to expand their market share, thanks to their diversified product portfolio across the entire spectrum of the sector,” said Abdulaziz Bin Yagub Al Serkal, general manager of Dubai Investments.
“The UAE’s construction industry is expected to show sustainable growth in the next few years, and has experienced enormous investment in the real estate from public and private enterprises during the past few years. With Expo 2020 projects likely to take off over the next two years, we are on the verge of a major upswing,” said Al Serkal.
Glass LLC subsidiaries have also embarked on aggressively expanding their production capacities. Emirates Glass is planning an operational restructuring to boost production of post-temperable coated glass, while SAG is upgrading the production capacity to 1.4 million sq m of high-performance coated glass per annum.
Lumiglass is expanding its production capacity of bullet resistant glass by 50 per cent from 130 units to 260 units per month. On the other hand, EFG is running to its maximum production capacity of 600 tonnes of molten glass per day. The plant has a capacity to produce about 200,000 tonnes of glass products per annum.
Glass LLC is also tapping into new exports markets in the coming months to complement its existing presence across the GCC and Mena region. The new markets include India, East Africa, South Africa, Turkey and other Asian countries.
Glass is an inherent part of the construction industry in the region, and with over $4.3 trillion forecast to be spent on construction in the Mena region in the current decade, there is huge demand for cut-to-size, sustainable, post-temperable coated glass products for both commercial and residential projects.