Joint deal cemented

RAK Ceramics and Laticrete form joint venture to manufacture ceramic adhesives

  • E-Mail
By  Eudore Chand Published  April 10, 2004

Laticrete RAK Co. LLC, a joint venture between RAK Ceramics and Laticrete International – a USA-based multinational, announced starting operations to manufacture ceramic adhesives and grouts in Ras Al Khaimah. RAK Ceramics is one of the largest producers of ceramic tiles in the world, while Laticrete is the world’s largest producer of adhesive substances and ceramic fixing grouts. RAK Ceramics did not previously have any grouting or adhesive production capability and was keen to develop this market area as it complements its range of ceramic products. Laticrete has had a presence in the region for 20 years, but its products had only been imported. The new joint venture helps the company realise its corporate strategy of being a full supplier at all market levels to the UAE and GCC countries. With a local operation Laticrete RAK will be able to maintain relatively low prices as the majority of the cost is related to the powder, which is extracted locally in Ras Al Khaimah. Responding to the huge potential demand in the region, the new factory is considered the largest and the most modern for adhesives and grouts in the Middle East. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah presided over the opening ceremony. Dr. Khater Massaad, CEO of RAK Ceramics and managing director of Laticrete RAK said: “We are pleased to inaugurate the new factory that uses state-of-the-art technology and we have invested nearly Dhs40 million. The new factory is to commence marketing its products in different markets carrying the Laticrete RAK trademark and is expected to firmly establish its position as a symbol for high quality in this arena”. David Rothberg, chairman of Laticrete Inc. was present for the occasion. Dr. Massaad affirmed that the establishment of the new factory took place under the vision of Sheikh Saud in line with his aspiration to develop the industrial sector in the Emirate and attract new technology. “The joint venture and building the new factory came as a result of extensive studies of the local and regional market demands, which emphasised the project’s economical feasibility. The project is in line with the strong growth and regional and international demand in the ceramic sector,” he said. “The production capacity is 100 000 tonnes of adhesive material and ceramic fixing grouts. It uses the latest technology developed by the well reputed and global Laticrete International Inc. and we are proud because our new project joins two well established and pioneering companies in the ceramic industry on a global level.” Dr. Massaad said: “Despite the fact that we are adopting conservative forecasts in our expansion plans, we are optimistic in reaching maximum capacity of the new factory soon, because we are ready and prepared for this by using designs that allow us to increase or double the production capacity to meet the forecasted growth in demand. We are adopting the highest quality standards throughout the production process as well as introducing our products in the markets at competitive prices.” RAK Ceramics witnessed considerable development in production levels and export. The company is continuing to invest in developing its production capacities in Ras Al Khaimah and abroad. Total company sales reached US $300 million in 2003.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code