Empower to build UAE's largest pipe factory

Ahmad Bin Shafar’s company has achieved backward integration.

District cooling company Empower has announced a joint venture with Danish pre-insulated pipe manufacturer Logstor.

Empower will hold 51% in the joint venture, which will set up the UAE's largest pre-insulated pipe factory and become operational next year, with Logstor taking the remaining 49%.

The new company, to be known as Empower Logstor, will help meet demand for pre-insulated pipes, especially in the district cooling sector.

"This joint venture, with a capital investment of US $25 million, is a new opportunity for Empower to achieve backward integration," said Empower chairman Saeed Mohammad Al Tayer.

"It will also consolidate our status as a leading regional player in pipeline systems. Our partnership with a major global brand will help us expand Empower's reach beyond the region."

Ahmad Bin Shafar, CEO of Empower and chairman of the joint venture, added: "The new company has been formed following an ongoing strategic review by Empower to ensure the supply of world-class quality district cooling plants and pipe networks.

"It will meet the demand for hundreds of kilometres of pre-insulated pipes needed for the region's future district cooling needs."

The size of the regional pre-insulated pipe market is expected to exceed $1.5 billion over the next five years.

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