Page 25

23

Golden batch Dubai-baseD GolDen ReaDy-mix is all set to leveRaGe its new centRally locateD batchinG plant to supply biG pRojects in the city anD use it as a spRinGboaRD foR fuRtheR expansion

W

ith the clock ticking down towards Expo 2020, sentiment remains upbeat in Dubai’s construction sector, and in the UAE’s construction landscape in general. The positive impact that projects related to the event are having on the UAE construction sector has made it the GCC’s top market for delivering construction growth this year, according to the GCC Construction Survey by Pinsent Masons. An industry-wide study of sentiment published early this year, the survey found that construction sentiment had improved by 7% (from 32% to 39%) in the UAE, from the previous year - the second year in a row that it has improved. The ongoing development in the country fuelled by Dubai’s Expo-related projects has also been good for the ancillary industries, with readymix suppliers being some of the main beneficiaries. One such company looking to benefit from this optimism and growth is Golden Ready-Mix, a Dubai ready-mix supplier. The company has made heavy investments on itself in its quest to tap into this growth and become one of the best-known names in the UAE construction industry. Among these investments is a brand-new facility in Dubai’s Al Quoz area, says E. R. Menon, CEO of Golden Ready-Mix. Built in anticipation of the market getting busier, one of its main calling cards is its central location in the city. “Large new projects are being announced, with some likely to be completed before 2020. Others will

continue for the next 10 to 15 years, projects like Deira Island, Dubai Creek Harbour and Dubai South – these are all long-term projects that will go beyond 2020. So for me the market will be very strong until the year 2020, but after that I expect to see a certain drop in volume, but it will continue to be active,” Menon says. In fact, so confident is Menon about the market continuing to stay active that Golden Ready-Mix has invested in a twin batching plant in the new location in Al Quoz. The plant can theoretically do 360 cubic metres per hour, and about 280 cubic metres per hour of actual production. “That’s quite good enough for that location,” Menon thinks. “It means that in 10 hours, we can do 2,800 cubic metres. I’m targeting that kind of daily production rate.” Elaborating about the present production targets of the plant, Menon says: “We’ve finalised a few contracts in that area, so we are already guaranteed a moderate daily production target, but the target is to do about a half million cubic metres there by the end of this year. “However, there is a certain size of market, and we will obviously be taking a share of that market wherever we are, regardless of how many trucks, pumps or plants we have. My target is not to go for volume. The more you go into increasing volume, the more you’ll need additional plants, equipment, and with that comes additional investments. “Tomorrow, if the market goes down, we need to be in a situation where we’re not sitting around with huge overheads, which is what happened to companies during the crisis before. We want to reach an optimum level of business and production, and then try to improve prices, if possible.” The facility required a considerable investment, especially since Golden chose to have a twin batching

Profile for Construction Machinery ME

Construction Machinery ME June 2018  

Construction Machinery ME June 2018