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UAE road construction drives up equipment demand

GENAVCO’s Equipment Business Unit sees growth 27% above yearly target

GENAVCO has experienced significantly higher levels of demand for road-building equipment since the third quarter of 2013.
GENAVCO has experienced significantly higher levels of demand for road-building equipment since the third quarter of 2013.

GENAVCO’s Equipment Business Unit has exceeded its 2014 growth target by 27% so far this year, according to division manager Asif Sayeed Khan.

In an interview with PMV Middle East, Khan said that this uptick is being driven largely by demand from the UAE’s road-construction sector.

The dealer’s Wirtgen Group products, which include Wirtgen, Vögele, and Hamm-branded road-building machines, are proving popular with contractors working on numerous large-scale projects currently underway across the Emirates.

“Although we are experiencing demand from across the UAE, I would say that our major focuses have been Abu Dhabi and the Western Emirates,” explained Khan.

“One of the most talked-about projects is the widening of the road between Mafraq and Ghweifat. Contractors such as Al Jaber and Ghantoot are currently working to expand this 325km stretch of road, and this is driving demand for related equipment.

“The expansion of Abu Dhabi International Airport is also precipitating demand for this type of equipment. So too are the runways and taxiways that are being repaired by Al Naboodah at Dubai International Airport. These are really good projects when it comes to sales of road-building equipment,” he added.

In a bid to capitalise on the UAE’s resurgent road construction sector, GENAVCO added Sigma asphalt plants to its portfolio in 2013. Not content to rest on their laurels, Khan revealed that he and his colleagues expect to add plate compactors and walk-behind rollers to the company’s line-up during the coming quarter.

“These products will be added to our range in about a month’s time,” he said. “We’ve already identified a partner; I cannot provide a name until they’ve signed, but the agreement is almost finalised. I can say that this is also a German manufacturer, very keen to tie up with our existing Wirtgen Group offerings. The two companies’ products go hand in hand,” he said.

In terms of his division’s priorities for the coming year, Khan contends that the challenge will be to hold onto, and cement, the top spot.

“We have to stay focused on the road construction sector in order to maintain our market share,” he concluded. “This is a significant challenge considering the fact that we are at the top. We enjoy a market share of between 60% and 65%, so to maintaining this level represents somewhat of a challenge.”

 

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Construction Week - Issue 745
Jun 30, 2019