Emaar unit buys majority stake in Caparol
Dubai, December 3, 2007
Emaar Industries & Investments (EII), a subsidiary of Emaar Properties, has acquired a majority stake in Caparol.
Caparol is the Dubai arm of Deutsche Amphibolin Werke (DAW) Group, a leading German decorative paint manufacturer. The Caparol brand is the leading brand within the DAW Group.
With the partnership, EII takes its number of business subsidiaries to 12.
As a strategic growth-facilitator, EII will now steer the market expansion of Caparol, which plans to move into Saudi Arabia, North Africa, Egypt and South East Asia. Dubai will serve as the regional hub of the company, and the production capacity will almost be doubled with the building of a new production facility.
“EII’s growth model is focused on recognizing and capitalizing on promising potential in the manufacturing industry. This is done through a three-pronged approach of strategic capitalization, lending industrial and managerial expertise, and facilitating expansion into strategic markets,” said Dr Ahmad Khayyat, CEO, Emaar Industries & Investments.
He added: “Caparol derives synergies from the current construction and real estate growth in the region, and its extensive product range effectively meets the demanding requirements of the market. A true leader in innovative products, Caparol has an accomplished track-record in innovation through R&D, and has over 200 European patents to its credit. The company also has a sound environmental policy, which is of crucial importance in today’s world. Our partnership with Caparol is aimed at maximizing the company’s productivity by expanding to a new and bigger facility, and facilitating expansion to new and promising markets.”
Caparol, headquartered in Ober-Ramstadt, Germany with operations in over 50 markets around the world, has a turnover of approximately one billion euros.
The Dubai operation, Caparol LLC, was established in 1998. In 2006, Caparol LLC was awarded the ISO 9001:2000 certification for its quality management system.
The Caparol product range includes: Façade and insulation technology, cladding and rear-ventilated façade (VHF), exterior paints, interior paints, enamels and glazes. To meet the evolving needs of the construction sector, the company is involved in the research and design, production and marketing of customised products. A core strength that DAW/Caparol technology brings into the Middle East is in thermal insulation where for over 30 years Caparol has implemented leading effective solutions onto buildings through Europe and other countries in which it operates with the Caparol systems.
“Caparol’s pillar of growth is our dedicated approach to research and development to create a truly diversified product range,” said Dr Ralf Murjahn, Owner, Caparol. “Decorative paint is one of the growing sectors, and we expect strong regional demand – in tune with the growth of the construction sector. We already have a number of prestigious projects in the country where the Caparol experience has brought high tech German technology (such as in thermal insulation solutions) and combined that with innovative decorative paint solutions that inspire.”
He added: “EII has a proven track record in facilitating companies to maximize their potential, and our partnership with EII will provide us with the expertise and strong brand association needed to expand our market share and strategic targets.”
The partnership with Caparol is a key addition to EII’s extensive portfolio of companies and joint ventures in the manufacturing industry. Within two years, EII has evolved as a strong platform for growth for promising enterprises in the manufacturing and industries sector. - TradeArabia News Service