Dubai: Soudal Group headquartered in Belgium and AI Muqarram Industry, based in Sharjah and Umm Al Quwain, United Arab Emirates, announced today the signing of a strategic partnership that will see both establishments expand their global footprint and product portfolio.
Soudal and AMI will have a combined international network that spans over 16 countries on 4 continents, – making the new entity one of the largest construction material manufacturers in the EMEA Region.
Founded in 1966, Soudal Group is the largest independent European manufacturer of sealants, adhesives and polyurethane foams for industrial and commercial purposes. The group has 23 production branches in five continents, sales offices in 45 different countries and employs around 3,654 people worldwide.
On its part, AMI leads the regional construction industry in the production of sealants, waterproofing products, adhesives, tapes, vehicle care & maintenance items and aerosol sprays that transcend the GCC, Europe, Africa, the Far East, and South Asia.
The partnership, which is also the first-ever in the region, comes against the backdrop of a renewed commitment by key stakeholders to raise the standards of infrastructure construction through the use of sustainable construction material as prescribed by local authorities and regulatory bodies in the region.
With a combined product portfolio of 6 versatile product families at its disposal, the AMI and Soudal Group partnership is expected to grow its market share by 50 percent in the Middle East region with a global market share of 40 percent over the next 3 years.
Investment & Growth Projections
As part of the collaboration, Soudal Group has invested an estimated 50 million euros (AED213 million) in AMI, resulting in an expected growth capacity of more than 50 percent over the next two years.
“From a projected sales revenue growth of about 15 percent to hit the AED 150 million mark by the close of 2021, we expect to register 20 percent growth to reach AED 180 million in 2022 driven by the expanded production capacity and a wider product portfolio,” said Mr. Safdar Badami, Managing Director, AMI.
Over the next three years, exports are expected to increase by approximately 40%, with year-on-year growth of more than 20% in most GCC countries, as well as Egypt, Jordan, Morocco, and the East African region.
Post-Partnership Footprint Expansion
Under the partnership, the two entities’ global reach is expected to grow by up to 50 percent over the next 3 years, will largely be driven by an enhanced production capacity, expanded, niche-driven and versatile product portfolio and a formidable knowledge base and expertise.
“This partnership completes one of our long-term goals, which was to break into the wider GCC market. To accomplish this, instead of going it alone, we sought to partner with a homegrown organization that has extensive knowledge of the regional construction industry. 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, ” Mr. Dirk Coorevits, Managing Director, – Soudal Group).
