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Tuesday, April 24, 2007 - Dubai

Nukote and BLDGTEC Set Up High Tech Coating Facility in Dammam with Initial Investment of AED37 Million

In 50/50 partnership with BLDGTEC; AED2.2 billion turnover at full capacity

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Nukote Coating Systems International, a leading global provider of high technology coating solutions for liquid distribution, storage and anti-corrosion systems, and Building Technology Trading & Contracting Company (BLDGTEC), a leading Saudi contractor, today announced the initiation of work on a state-of-the-art polymer blending facility to be located in Dammam, the Kingdom of Saudi Arabia. With an initial investment of AED37 million (US$10 million), the facility will produce some 90,000 tons per annum at full capacity.

“Nukote’s high tech, high capacity facilities have delivered the highest quality specialized coating products to the oil and gas industry for many years in the Middle East,” said Abdulah Al-Shamrani, president, BLDGTEC. “Our partnership with Nukote is aimed at providing industrial organizations, be they into oil and gas, construction or infrastructure development, with readily available, high grade coating solutions at lower prices.”

The new factory will initially produce for consumption in Saudi Arabia as well as some of the GCC (Gulf Cooperation Council) countries, and at full capacity could cover many of Nukote’s Middle East clients and affiliates. It will also include research and development, sales and technical support personnel. The facility will produce, Polyureas, Polyurethanes (aromatic, aliphatic and polyaspartic aliphatic), ceramic metal polymers and primers and will cover an area of 7,000 square meters. At full capacity, the facility would generate AED2.2 billion (US$600 million) per year.

“We expect to turn over around AED184 million (US$50 million) during our first year of operation and will employ up to 35 Saudi nationals to operate the facility,” said Michael Osborne, Nukote’s president and CEO. “We are fully committed to increasing our local distribution and application capabilities by fully supporting the efforts of our regional distributors and applicators who are enjoying great success throughout the region.”

Nukote distributes their products through a global alliance of regional distributors. GCC distributors of Nukote products include Ahmed Mansoor Al A’Ali Co. in Bahrain, Al Bader Group in Kuwait, Hitech Products in Qatar, Khimji Permoglaze in Oman and ADMI in Abu Dhabi. Fosroc Global Holdings is the Master Distributor for Nukote with Al Gurg Fosroc representing Nukote in the GCC, Fosam Company Limited in the Kingdom of Saudi Arabia and Fosroc Global Trading in other Middle East regions.

Nukote products are applied through a network of qualified application firms, which are trained and certified by Nukote. Nukote additionally offers insurance backed warranties to end-users that include the application work providing assurance to its clients that the products specified and applied will perform as required. Local companies presently certified and applying Nukote products in the region include; Horizon Coating Products (UAE), Dicotech (UAE/QATAR), Fameco (UAE), Al Ansari (Oman), Hitech Products (Qatar), AMA (Bahrain), Al Bader Group (Kuwait), Fosam (KSA), BTT (KSA) among others.

“We are also finalizing some strategic affiliations with firms in the GCC related to both commercial and manufacturing entities, the details of these new alliances will be release once they are consummated,” Osborne concluded.

The announcement comes on the heels of a similar deal between Ahmed Mansoor Al A’Ali Co. (AMA), one of Bahrain’s largest contracting companies and Nukote to provide an AED5.5 million (US$1.5 million) ‘supply and apply’ advanced pipe coating facility in Bahrain.

Nukote is a privately held corporation with an annual turnover in 2005 of US$65 million. The company develops and manufactures advanced polymer coating, liner and membrane systems utilized in petrochemical, industrial, infrastructure, manufacturing and civil construction markets, distributing them through a network of affiliated distribution and application firms globally. Nukote maintains their international headquarters in Jebel Ali Free Zone, Dubai.

E-MAIL US: info@tcf-me.com

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