US $25m pipe factory is UAE's largest

Empower CEO Ahmad bin Shafar and Logstor CEO Preben Tolstrup.

Facility gets officiall inauguration in high-level function attended by Danish and UAE dignitaries.

The UAE’s largest pre-insulated pipe manufacturing facility, Empower-Logstor Insulated Pipes Systems (ELIPS), has been inaugurated officially in Jebel Ali by HRH the Crown Prince of Denmark Frederik Andre Henrik Christian and HH Sheikh Mansoor Bin Mohammed Bin Rashid Al Maktoum.

ELIPS is a joint venture (JV) between Emirates Central Cooling Systems Corporation (Empower), a leading district cooling company in the UAE, and Logstor, the world’s largest manufacturer of pre-insulated pipes. The US$25 million facility will cater to the requirements of the district cooling and oil and gas sectors across the Middle East.

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“This factory represents Dubai’s success in bringing fresh investments into the Emirate. Further, it demonstrates Dubai companies’ progressive outlook in investing in new ventures, expanding existing facilities to provide full integrated solutions, and producing raw material internally instead of importing it,” Empower CEO Ahmad Bin Shafar said at the high-level launch.

“Empower decided to enter into this JV with an eye on securing the supply chain of pre-insulated pipes used in district cooling networks, which constitutes 20% to 25% of the total capital investment,” said Bin Shafar.

High Quality
ELIPS will ensure high quality of insulation and casing of pipes, enhancing efficiency and maintenance costs of district cooling 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, added Bin Shafar.

Preben Tolstrup, CEO OF Logstor, which owns a 49% stake in ELIPS, said: “We are the world’s leading pre-insulated pipe manufacturer, with more than 50 years’ experience and ten 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 to be introduced at this new plant will set the standards for many years ahead.”

Commenting on the prevailing business environment, Tolstrup said: “We believe that the 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.”

Backwards integration
“This factory represents an opportunity for Empower to achieve backwards 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,” 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. The factory will offer job opportunities for a wide range of competences, from operators to highly-skilled engineers.

ELIPS will use 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 the JV to enter the oil and gas industry, which is not possible with traditional injections. Currently, only one out of five existing pre-insulated pipe manufacturers are using spray technology.