Alghanim plans Asia expansion, eyeing US

ASIA EXPANSION: Alghanim plans to increase its presence in Asia and is looking for opportunities in the US. (Getty Images)

Alghanim Industries, one of the largest privately-owned companies in the Gulf, plans to greatly expand its presence in Southeast Asia before the end of 2008, and is also studying fresh opportunities in the US, its CEO said on Monday.

“We hope to have a presence in both Malaysia and Thailand by the end of the year,” Omar Alghanim told magazine Arabian Business in an interview on the sidelines of the World Economic Forum (WEF) on the Middle East in Sharm El Sheikh, Egypt.

While Alghanim would not be drawn on the nature of the expansion, the Kuwait-based firm has already enjoyed considerable success across Asia through its insulation manufacture subsidiary, Rockwool (India), established in 1991.

Alghanim also revealed that the company is considering making further inroads into the US market, though intellectual property (IP) agreements and private equity partnerships.

“If I was to go in [to the US] I’d want to go in and buy IP,” he said.

“We’re looking at a couple of opportunities with other funds that may buy the physical assets, and then we’d have rights for the IP.

"We will take that IP - whether it is technology, thoughts, software or whatever - and be able to capitalize on that within our markets."

Alghanim said there were some real opportunities within the US market, particularly since the Kuwait depegged from the US dollar.

“However, the US market is competitive, tough to do business in, heavily regulated and litigious, and currently we are not looking at any direct investments,” he added.

Alghanim Industries is a multi-billion dollar conglomerate with more than 30 businesses involved in sectors from advertising and media to shipping and transportation services.

Established in the 1930s, Alghanim now has over 12,000 staff, and operates across the Middle East, India and Turkey, with business currently extending to Eastern Europe, Africa, East and Southeast Asia.

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