RAK Ceramics Fully Acquires Iranian Subsidiary
Ras Al Khaimah, UAE, August 2015
Poised at the Forefront of One of the Most Attractive Upcoming Investment Opportunities
RAK Ceramics P.S.C. (Ticker: RAKCEC: Abu Dhabi), a global hi-tech manufacturer of lifestyle ceramics solutions, today announced that it acquired the 20% minority share of RAK Iran and therefore RAK Iran is now a wholly owned subsidiary of RAK Ceramics. The transaction will be subject to final regulatory approvals.
Financed by the World Bank, RAK Ceramics setup Iran operations in 2003 to utilize the country’s abundant natural resources and capitalize on its strategic geographic location which allows access to frontier markets of Russia, Central Asia and Central Europe. RAK Ceramics has 3 production lines in Iran with an annual production capacity of 9 million sqm.
With 100% ownership and full management control, RAK Ceramics management has a long term vision for the Iranian market both domestically and as an export center in Central Asia as the sanctions regime gets lifted.
Abdallah Massaad, CEO of RAK Ceramics said: “Our facility in Iran which, like the rest of our global manufacturing units, is equipped with the best machinery and infrastructure in our industry. Therefore, once sanctions are lifted, we are fully prepared to maximise our operations by integrating the Iran facility seamlessly into the group. This strategy is inline with our Value Creation Plan and will not only unlock hidden value, but position us to increase market share in high-end markets”
“We look forward to continuing our global growth momentum and maintaining our commitment to the markets we operate in, through investing in the latest technology, best in class global talent and meeting the demands of our clients around the world.”
Iran is the 4th largest in the world in terms of ceramics production after China, Brazil and India and RAK Ceramics has big manufacturing base in two out of these four leading markets.
RAK Ceramics operates 10 plants in the UAE, accounting for 73% of tiles sales volumes in 2014 and one in India, one in Bangladesh and one in Iran. The UAE is considered the main export hub to the GCC, MENA and the European Union.