Jebel Ali, Dubai, UAE, 20th January, 2010: H.R.H. the Crown Prince of Denmark, Frederik and HH Sheikh Mansoor Bin Mohammed Bin Rashid Al Maktoum today inaugurated Empower-Logstor Insulated Pipes Systems (ELIPS), UAE's largest pre-insulated pipe manufacturing facility, in Jebel Ali. The move signifies UAE’s drive towards diversification of economy in order to sustain growth.
ELIPS is a joint venture between Emirates Central Cooling Systems Corporation (EMPOWER), UAE’s leading district cooling company and LOGSTOR, the world's largest manufacturer of pre-insulated pipes. The $25 million facility will cater to the requirements of District Cooling Services and Oil and Gas across the Middle East.
District cooling is over 50% more efficient than conventional air conditioning solutions; it also removes the heavy load on the electricity grid when demand for cooling is high. District cooling is the most eco-friendly air-conditioning technology in meeting the world’s CO2 reduction targets. Therefore we believe that the global growth in district cooling systems will be huge in the years to come.
Speaking at the launch, Ahmad Bin Shafar, CEO of Empower (51% partner), said: “This factory represents Dubai’s success in bringing fresh investments into the Emirate. Further, it demonstrates Dubai companies’ progressive outlook reflected in investing in new ventures, expanding existing facilities to provide full integrated solutions and producing raw material internally instead of importing it.”
“Empower decided to enter this joint venture with an eye on securing the supply chain of pre-insulated pipes used in District Cooling Services (DCS) networks which constitute 20-25% of our total capital investment. The facility will ensure timely delivery and installation of pipe networks that will have a major impact on Empower’s project timelines,” Bin Shafar added.
ELIPS will ensure high quality of insulation and casing of pipes, enhancing efficiency and maintenance costs of District Cooling Systems services. It will also ensure price control by improving supply chain and eliminating artificial price fluctuations created by various players due to the demand-supply gap, Bin Shafar said.
Preben Tolstrup, CEO OF LOGSTOR, which owns 49 per cent stake in ELIPS, said: “We are the world’s leading pre-insulated pipe manufacturer with more than 50 years of experience and 10 factories worldwide, serving customers in more than 50 countries. With the prime purpose of supplying top quality District Cooling pipe systems to the entire Region, the world’s most advanced technology introduced at this new plant will set the standards for many years ahead.”
Commenting on the UAE’s economy, Preben Tolstrup commented: “We believe that UAE’s economy is in good hands, and our outlook on the future is optimistic. LOGSTOR’s aim is to serve the Gulf region through Dubai, which has strong infrastructure and logistical connectivity.”
Bin Shafar said: “ELIPS will also specialize in and supply pre-insulated pipes to the oil and gas sector as well as district cooling. Through ELIPS, Empower will be saving between 15–25 % on the cost of pre insulated pipes for its various projects.”
EMPOWER's vision to supply reliable and environmentally friendly comfort cooling is in sync with LOGSTOR's ambition to meet the critical need for high-quality pre-insulated pipes across the Gulf region. ELIPS will supply world class pipe networks and meet the demand for hundreds of kilometers of pre-insulated pipes for the region’s future district cooling.
ELIPS will benefit from its location in Jebel Ali Industrial area, which will provide easy access to both Dubai and Abu Dhabi markets, which are one of the biggest markets for District Cooling and Oil & Gas sectors in the region.
“This factory represents an opportunity for Empower to achieve backward integration. It will also consolidate our status as a leading regional player in pipeline systems by meet the industry's primary requirement for pre-insulated pipes. Empower’s position as the region's number one company for district cooling is more realised now with the opening of this factory,” said Bin Shafar.
LOGSTOR has been serving the Gulf region since 1992 and is now marking its commitment to serve the region by establishing an anchored presence with the ELIPS factory.
Depending on dimensions and output from 100 to 300 pipe joints a day, the ELIPS factory will offer job opportunities for a wide range of competences, from operators to highly skilled engineers within sale, engineering and production technologies.
ELIPS is using Spray Technology for manufacturing large diameter pre-insulated pipes which will ensure high quality products and also result in savings in raw material costs as compared to traditional injection technology. This technology also enables foray into the oil and gas industry which is not possible with traditional injections. Currently, only 1 out of 5 existing pre-insulated pipe manufacturers are using spray technology.
ELIPS aims to make major contribution to green environment as its technology helps lower CO2 emissions. District cooling is the most eco-friendly technology in meeting the world CO2 reduction targets.
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