Materials shortages prompt new ventures

In light of the surge in prices for raw materials, some companies have begun to set up new batching plants to cash in on continuing demand, while others have formed partnerships with developers to guarantee a steady supply of materials for their projects.

Remix's new batching plant in Ajman.
Remix's new batching plant in Ajman.

In light of the surge in prices for raw materials, some companies have begun to set up new batching plants to cash in on continuing demand, while others have formed partnerships with developers to guarantee a steady supply of materials for their projects.

Ajman's Tech Group subsidiary, Remix Tech, has opened a new batching plant at a cost of US $10.9 million (AED40 million), and another at a cost of $1.4 million to keep up with demand.

Remix Tech is also acquiring 86 trucks, with an additional order for 20 more, for the loading and transportation of ready mix concrete across the UAE.

"The ongoing construction boom in the region is excellent news for us, and we are putting in place the necessary measures to ensure that we are able to keep up with the demand for quality ready mix concrete," said Tech Group CEO Ali Ghaleb Jaber.

The additional plant and vehicles will enable us to meet and surpass current demand, which ultimately translates into faster completion of construction projects.

Abu Dhabi-based Aldar Properties has also joined forces with Readymix Abu Dhabi for the formation of Aldar Readymix.

The company has been set up with the primary focus of supplying concrete to a capacity of 15,000m³ per day.

The concrete will serve Aldar's Al Raha Beach, Central Market and YAS Island developments.

Al Raha Beach alone currently has four on-site concrete batching plants with a total production output of 6,000m³ per day.

Aldar Readymix plans to add another eight plants before the end of this year, bringing the total production capacity to well over 15,000m3 per day.

"This partnership will ensure that the concrete used for our developments is of the highest possible quality," said Ron Barrott, CEO, Aldar Properties.

"Aligning with Readymix Abu Dhabi ensures that the highest standards will be utilised in the construction of our developments," he added.

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