RAK Ceramics, a global hi-tech manufacturer of lifestyle ceramics solutions, has acquired the 20 per cent minority share of RAK Iran, thus making the latter its wholly owned subsidiary.

Financed by the World Bank, RAK Ceramics set up Iran operations in 2003 to utilise the country’s abundant natural resources and capitalize on its strategic geographic location which allows access to frontier markets of Russia, Central Asia and Central Europe. RAK Ceramics has three production lines in Iran with an annual production capacity of 9 million sq m.

With 100 per cent ownership and full management control, RAK Ceramics management has a long term vision for the Iranian market both domestically and as an export center in Central Asia as the sanctions regime gets lifted.

Abdallah Massaad, CEO of RAK Ceramics said: “Our facility in Iran which, like the rest of our global manufacturing units, is equipped with the best machinery and infrastructure in our industry. Therefore, once sanctions are lifted, we are fully prepared to maximise our operations by integrating the Iran facility seamlessly into the group. This strategy is in line with our Value Creation Plan and will not only unlock hidden value, but position us to increase market share in high-end markets.”

“We look forward to continuing our global growth momentum and maintaining our commitment to the markets we operate in, through investing in the latest technology, best in class global talent and meeting the demands of our clients around the world,” he added.

RAK Ceramics operates 10 plants in the UAE, accounting for 73 per cent of tiles sales volumes in 2014 and one in India, one in Bangladesh and one in Iran. – TradeArabia News Service