UAE-based manufacturer AMI receives Dhs213m investment from Soudal Group

UAE-based industrial firm Al Muqarram Industry (AMI) has received an investment of roughly 50m euros (Dhs213m) from European manufacturing company Soudal Group as part of a new partnership.

The deal will help the combined entities become one of the largest construction material manufacturers in the Europe, Middle East and Africa region, a statement said.

Based in Sharjah and Umm Al Quwain, AMI manufactures sealants, waterproofing products, adhesives, vehicle care and maintenance items, aerosol sprays, health and hygiene products and sanitiser liquids and sprays.

Meanwhile Belgium-based Soudal Group, the largest independent European manufacturer of sealants, adhesives and polyurethane foams for industrial and commercial purposes, has 23 production branches worldwide, sales offices in 45 countries and employs around 3,654 people.

The AMI and Soudal Group partnership is expected to grow their combined market share by 50 per cent in the Middle East to reach a global market share of 40 per cent over the next three years, the statement said.

“From a projected sales revenue growth of about 15 per cent to hit the Dhs150m mark by the close of 2021, we expect to register 20 per cent growth to reach Dhs180m in 2022 driven by the expanded production capacity and a wider product portfolio,” said Safdar Badami, managing director, AMI.

Over the next three years, exports are expected to increase by approximately 40 per cent, with year-on-year growth of more than 20 per cent in most GCC countries, as well as Egypt, Jordan, Morocco, and East Africa.

“This partnership completes one of our long-term goals, which was to break into the wider GCC market,” said Dirk Coorevits, managing director, Soudal Group.

“Our partnership with AMI now gives us an opportunity to contribute significantly to the region’s infrastructure projects by bringing new technologies and innovations to the market.”

The UAE has been focusing heavily on boosting its local manufacturing facilities. Earlier this year, the country launched the ‘Operation 300bn’ strategy, which aims to increase the GDP share of the sector from Dhs133bn at present to Dhs300bn by 2031.

Read: Sheikh Mohammed launches ‘Operation 300bn’ strategy to foster UAE industrial sector