Denmark Crown Prince and Sheikh Mansoor bin Mohammed inaugurate UAE's largest pre-insulated pipe manufacturing facility

Denmark Crown Prince and Sheikh Mansoor bin Mohammed inaugurate UAE's largest pre-insulated pipe manufacturing facility

$25 million Empower-Logstor Insulated Pipes Systems (ELIPS) signifies UAE’s drive towards diversification of economy

Jebel Ali, Dubai, UAE, 20th January, 2010: H.R.H. the Crown Prince of Denmark, Frederik and HH Sheikh Mansoor Bin Mohammed Bin Rashid Al Maktoum today inaugurated Empower-Logstor Insulated Pipes Systems (ELIPS), UAE's largest pre-insulated pipe manufacturing facility, in Jebel Ali. The move signifies UAE’s drive towards diversification of economy in order to sustain growth.

ELIPS is a joint venture between Emirates Central Cooling Systems Corporation (EMPOWER), UAE’s leading district cooling company and LOGSTOR, the world's largest manufacturer of pre-insulated pipes. The $25 million facility will cater to the requirements of District Cooling Services and Oil and Gas across the Middle East.

District cooling is over 50% more efficient than conventional air conditioning solutions; it also removes the heavy load on the electricity grid when demand for cooling is high. District cooling is the most eco-friendly air-conditioning technology in meeting the world’s CO2 reduction targets. Therefore we believe that the global growth in district cooling systems will be huge in the years to come.

Speaking at the launch, Ahmad Bin Shafar, CEO of Empower (51% partner), said: “This factory represents Dubai’s success in bringing fresh investments into the Emirate. Further, it demonstrates Dubai companies’ progressive outlook reflected in investing in new ventures, expanding existing facilities to provide full integrated solutions and producing raw material internally instead of importing it.”

“Empower decided to enter this joint venture with an eye on securing the supply chain of pre-insulated pipes used in District Cooling Services (DCS) networks which constitute 20-25% of our total capital investment. The facility will ensure timely delivery and installation of pipe networks that will have a major impact on Empower’s project timelines,” Bin Shafar added.

ELIPS will ensure high quality of insulation and casing of pipes, enhancing efficiency and maintenance costs of District Cooling Systems 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, Bin Shafar said.

Preben Tolstrup, CEO OF LOGSTOR, which owns 49 per cent stake in ELIPS, said: “We are the world’s leading pre-insulated pipe manufacturer with more than 50 years of experience and 10 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 introduced at this new plant will set the standards for many years ahead.”

Commenting on the UAE’s economy, Preben Tolstrup commented: “We believe that 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.”

Bin Shafar said: “ELIPS will also specialize in and supply pre-insulated pipes to the oil and gas sector as well as district cooling. Through ELIPS, Empower will be saving between 15–25 % on the cost of pre insulated pipes for its various projects.”

EMPOWER's vision to supply reliable and environmentally friendly comfort cooling is in sync with LOGSTOR's ambition to meet the critical need for high-quality pre-insulated pipes across the Gulf region. ELIPS will supply world class pipe networks and meet the demand for hundreds of kilometers of pre-insulated pipes for the region’s future district cooling.

ELIPS will benefit from its location in Jebel Ali Industrial area, which will provide easy access to both Dubai and Abu Dhabi markets, which are one of the biggest markets for District Cooling and Oil & Gas sectors in the region.
“This factory represents an opportunity for Empower to achieve backward 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. Empower’s position as the region's number one company for district cooling is more realised now with the opening of this factory,” 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.

Depending on dimensions and output from 100 to 300 pipe joints a day, the ELIPS factory will offer job opportunities for a wide range of competences, from operators to highly skilled engineers within sale, engineering and production technologies.

ELIPS is using 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 foray into the oil and gas industry which is not possible with traditional injections. Currently, only 1 out of 5 existing pre-insulated pipe manufacturers are using spray technology.
ELIPS aims to make major contribution to green environment as its technology helps lower CO2 emissions. District cooling is the most eco-friendly technology in meeting the world CO2 reduction targets.

About Empower:

Emirates Central Cooling Systems Corporation (Empower) is a joint venture between Dubai Technology and Media Free Zone (TECOM) Investments and Dubai Electricity and Water Authority (DEWA), created to provide energy-efficient district cooling services to large-scale real estate developments. Empower plans to diversify into other energy efficiency and conservation services. Empower's district cooling systems (DCS) provide effective and efficient means of air conditioning. Water is cooled in central plants and distributed through a network of piping systems to individual customer buildings. DCS achieves economies of scale by using centralised plants instead of individual cooling units in each building. The centralised system results in reduced capital and operating costs, thus reducing air-conditioning set-up and energy costs per building. Empower is set to become one of the largest district cooling companies in the region.

LOGSTOR

LOGSTOR is the world’s leading manufacturer of pre-insulated pipes for energy efficient transportation of gases and liquids for district heating and cooling, oil and gas, solar, marine and industrial purposes. LOGSTOR invented the pre-insulated pipe system technology and has delivered more than 160,000 km pre-insulated pipes to date. LOGSTOR provides products which contributes considerably to reductions in CO2 emissions and improved energy efficiency.

Today LOGSTOR is an international group with subsidiaries in Denmark, Sweden, Finland, Germany, Poland, the Netherlands, France, Italy, Austria, Switzerland, China, Romania and Lithuania. A network of 30 agents and LOGSTOR’s 12 sales offices support the sales activities.

LOGSTOR supplies customers in more than 50 countries and sells its pipe systems in markets where energy savings and CO2 reduction considerations will affect clients choice of how they heat or cool residential and commercial property and how oil, gas and other liquids are most efficiently transported.

LOGSTOR is headquartered in Løgstør, Denmark, and employs approximately 1,300 employees. Production is carried out in the Group’s own 10 factories situated in Denmark, Sweden, Finland, Poland, China, Romania and in its joint venture in Korea and Dubai. All 10 factories of the group hold the ISO9000 quality certificate and the ISO 14001 environment certificate.

LOGSTOR is owned by Montagu Private Equity.

Montagu Private Equity

Montagu is a leading private equity investor in the European mid-market with offices in London, Manchester, Paris, Düsseldorf and Stockholm. Over the last 40 years Montagu has supported more than 400 businesses operating across a range of different segments and sectors, and currently has more than €3.5 billion under management. Montagu is focused on investing in management buyouts in partnership with the incumbent management team. The firm has an extensive network of contacts and offers its portfolio companies capital, financial expertise and strategic assistance in order to unleash their full development and growth potential.