Sika AG has reportedly opened a new factory in Dubai in a bid to expand its presence in the United Arab Emirates (UAE). As per sources, the Swiss chemical company has shifted an existing facility that was used to produce concrete admixtures to the new site in Dubai Industrial City and expanded it further along with extending its offices and warehouse capacity.

According to credible company sources, the new plant, which would be a center for the production of high-performance concrete admixtures, has been equipped with a state-of-the-art mortar facility and a polymer producing reactor. It will also function as a strategic base for sales and distribution in the region, the sources further mentioned.

The new facility will locally produce polymers and could supposedly help to cut down on costs considerably, by optimizing the overall cost structure, material streams as well as logistics. Signifying the potential for future growth, the company expects to supply products to customers across the all Gulf Cooperation Council (GCC) member states that are increasingly demanding customized concrete admixtures for major construction projects.

Ivo Schädler, Sika’s regional manager for EMEA, stated that the company’s new Dubai Industrial City site is strategically located between Dubai and Abu Dhabi, developed as an important production, sales and distribution center for the entire GCC region. He added that the Sika has created idealistic conditions for ensuring the company’s penetration into the area’s thriving construction sector.

Industry reports suggest that the UAE is aiming to reduce the dependency of its economy on the oil and gas sector, invigorating the construction industry which has additionally benefited from the budding tourism. Subsequently, UAE is said to have developed into a regional hub for renewable energy generation and green technologies, besides being a major logistics center. The reports also estimate that the construction segment in the region could register up to 7% growth rate over the coming years.