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MIDDLE EAST NEWS UPDATE | 06

EVENTS | 11
LEGAL | 18
BUSINESS LEADS | 33
PRODUCTS | 36
THE LAST WORD | 40
Licensed by Dubai Media City

Essential information for mechanical, electrical and plumbing professionals An ITP Business Publication | April 2010 Vol. 5 Issue 4

PIPES,
GENSETS
A GUIDE TO THE
MAJOR SUPPLIERS
AND PLAYERS

CABLES
DOW WIRE & CABLE
ON THE ROLE OF
INFRASTRUCTURE

GROWTH
MARKET
ANALYSIS
THE LATEST RESEARCH
PATH
Al Habtoor-Specon
or-Specon reveals the
INSIGHTS INTO THE MEP secrets behind
ehind its phenomenal
MARKET IN THE GCC growth, despite
d it th the ddownturn
t

ALSO: EMANUELE STANO FROM ARISTON


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APRIL 2010 VOLUME 5 ISSUE 4

CONTENTS

16

23
03 CONSTRUCTION WEEK ONLINE 18 LEGAL latest research report on the MEP
sector in the GCC.
05 COMMENT 20 GENSETS
A round-up of major suppliers and 30 PIPES
06 UPDATE players. A round-up of major suppliers and
players.
14 THE BIG INTERVIEW 23 CABLES
Al Habtoor-Specon MD Thrasos Dow Wire & Cable global mar- 33 BUSINESS LEADS
Thrasyvoulou. keting director Jon Penrice on
infrastructural growth. 35 METAL MONITOR
16 PROFILE
Ariston Thermo Middle East mar- 26 MARKET ANALYSIS 36 PRODUCTS
keting manager Emanuele Stano Senior research analyst Vivek
on the latest technology. Vijayakumar on Frost & Sullivan’s 40 THE LAST WORD

www.constructionweekonline.com April 2010 | MEP Middle East 1


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CONSTRUCTIONWEEKONLINE.COM
OM
M

IN PICTURES MOST POPULAR

• Six of the best: Top GCC education projects


• Six projects that didn’t make it
• Al Habtoor-Specon wins AED 320 million
MEP contract
• Emaar’s 29 Burj Boulevard project delayed
two years
• DSWP bags Khalifa City utilities contract

EDITOR’S CHOICE

OCEAN HEIGHTS
DAMAC Properties’ Ocean Heights is an 83 storey, 310 m high residential tower. It was designedd by
best
Aedas, whose projects include the Dubai Metro and the Pentomium. The project received a Bentley ‘best
architecture’ award in 2006. It has a ‘minor’ twist from floor-to-floor level.

For more galleries, check out www.constructionweekonline.com/galleries

COLUMNS AND FEATURES • Middle East faces chronic water shortage

HOLISTIC ENERGY SAFETY TALLY • On World Water Day, DuPont trumpets its
MANAGEMENT Selina Denman, Editor, water-saving technologies
Brett Annesley, Commercial Interior • British plug set for design revamp
Guest Columnist Design
Energy-management Clichés express
• Marshall-Tufflex appoints new technical
approaches to lighting an unavoidable, manager for the Gulf
control and design resounding truth. The
may provide the key much-abused ‘safety
to reducing energy in numbers’ is a case SPOT POLL
consumption within in point.
the commercial What’s your biggest headache
sector.
right now?

BACKTRACK
Greg Whitaker, Editor,
MARKET GAP
Stuart Matthews,
41.4%
Finding new work
PMV Middle East Senior Group Editor
The Emirates Motor A good plumber is
Museum in Abu Dhabi
has a selection of cus-
harder to fi nd than
an odourless camel,
34.5%
Getting the money we’re owed
tomised Dodge Power which can only mean
Wagons. However,
while we have dune-
bashing as a sport,
there’s a gap in the
market. Who will be
the fi rst to fill it?
24.1%
Unhappy workers
Monster Truck racing
hasn’t taken off here
as it has in the US. 0.0%
Materials procurement
For more comments, check out www.constructionweekonline.com/comments

www.constructionweekonline.com April 2010 | MEP Middle East 3


COMMENT

Tapping into water conservation


MIDDLE EAST

Registered at Dubai Media City

T
PO Box 500024, Dubai, UAE
Tel: 00 971 4 210 8000
he planet marked World Water Day on 22 40% of its demand for drinking from bottled water.
Fax: 00 971 4 210 8080 March. According to the United Nations De- The ‘One Million Taps’ programme aims to edu-
Web: www.itp.com
Offices in Dubai & London velopment Programme, more than a billion cate the public and encourage the widespread use of
ITP BUSINESS PUBLISHING people, or about one in six worldwide, do not water-saving devices, from taps to shower heads, for
CEO Walid Akawi have safe drinking water. More than two billion lack example. Interestingly, the campaign is being pro-
Managing Director Neil Davies
Deputy Managing Director Matthew Southwell access to adequate sanitation. If current water-usage moted as a ‘national duty’.
Editorial Director David Ingham
VP Sales Wayne Lowery trends continue, two-thirds of the world’s population While the government aims to provide a safe and
Publishing Director Jason Bowman
will not have enough clean water by 2025. adequate water supply, it is the duty of every citizen
EDITORIAL The international observance of World Water to conserve water, reduce wastage and adopt mea-
Senior Group Editor Stuart Matthews
Tel: +971 4 435 6293 email: stuart.matthews@itp.com Day is an initiative that grew out of the 1992 United sures to maximise water use, according to Al Majal.
Editor Gerhard Hope Nations Conference on Environment and Develop- In addition, companies have a corporate social
Tel: +971 4 435 6252 email: gerhard.hope@itp.com

ADVERTISING
ment (UNCED) in Rio de Janeiro. The Water for Life responsibility to conserve water as part of reducing
Publishing Director Jason Bowman Decade 2005-2015 will give a high profile to imple- their overall environmental impact. Water conser-
Tel: +971 4 210 8351 email: jason.bowman@itp.com
Business Development Manager Atif Majid
menting water-related programmes. The first water vation reduces a company’s risk, and is in line with
Tel: +971 4 210 8155 email: atif.majid@itp.com decade, from 1981 to 1990, brought water to over a consumer preferences, as well as maintaining over-
STUDIO billion people and sanitation to almost 77 million. all efficiency in the supply chain. With regard to the
Group Art Editor Dan Prescott But obviously there is still a lot to do. latter, the Al Majal scheme is designed to provide a
Designer Angela Ravi
According to the Institute for Advanced Strategic total saving of up to 30% to 50%.
PHOTOGRAPHY
Director of Photography Sevag Davidian
& Political Studies (IASPS), water resources in the At the end of the day, there is no hi-tech solution to
Chief Photographer Khatuna Khutsishvili Middle East are plummeting. While representing 5% water scarcity. As the ‘One Million Taps’ programme
Senior Photographers G-nie Arambulo, Efraim Evidor,
Thanos Lazopoulos of the total world population, the Middle East and shows, what is needed, first and foremost, are a few
Staff Photographers Isidora Bojovic, George Dipin,
Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh North Africa (MENA) region contains only 0.9% of fittings and a lot of common sense.
Raghav
global water resources.
PRODUCTION & DISTRIBUTION The number of water-scarce countries in the GERHARD HOPE
Group Production Manager Kyle Smith
Deputy Production Manager Kyle Smith Production MENA region rose from three in 1955 (Bahrain, Editor
Coordinator Devaprakash V A
Managing Picture Editor Patrick Littlejohn
Jordan and Kuwait) to 11 by 1990 (with the inclu- gerhard.hope@itp.com
Image Retoucher Emmalyn Robles sion of Algeria, Israel and the Occupied Territories,
Distribution Manager Karima Ashwell
Distribution Executive Nada Al Alami Qatar, Saudi Arabia, Somalia, Tunisia, the UAE and
CIRCULATION Yemen). Another seven are anticipated to join the
Head of Circulation & Database Gaurav Gulati list by 2025 (Egypt, Ethiopia, Iran, Libya, Morocco,
MARKETING Oman and Syria).
Head of Marketing Daniel Fewtrell In commemoration of World Water Day 2010, Al
ITP DIGITAL Majal Environmental & Technical Services, a 100%
Director Peter Conmy
Omani environmental company, launched its ‘One
ITP GROUP
Million Taps’ programme under its Oman Water
Chairman Andrew Neil
Managing Director Robert Serafin Mandate (OWM) campaign to address the water
Finance Director Toby Jay Spencer-Davies
Board of Directors K.M. Jamieson, Mike Bayman,
challenges of the country, which reportedly obtains
Walid Akawi, Neil Davies, Rob Corder, Mary Serafin

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Thrasos Thrasyvoulou from turnkey MEP contractor Al Habtoor-
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Specon, talking about the company’s strong growth trajectory
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COMMENTS
Do you have any comments about the MEP industry in the Middle East? Please e-mail any letters to:
gerhard.hope@itp.com or post to: MEP Middle East, ITP Business, PO Box 500024, Dubai, UAE.
Published by and © 2010 ITP Business
Publishing, a member of the ITP Publishing
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Company Registration number 1402846 Keep up-to-date with all MEP Middle East news at

www.constructionweekonline.com April 2010 | MEP Middle East 5


UPDATE

New switchboard plant in TechnoPark


Dynergy Technologies specialises in the assembly and supply of LV and MV electrical switchboards
SWITCHBOARDS
A new manufacturing plant for
LV and MV switchboards has
been launched offi cially by
Dynergy Technologies in Tech-
noPark in Jebel Ali. The fi rst
phase of the new facility, sprawl-
ing over 22 000 m², will create
300 jobs and has a capacity to
produce 30 000 switchboard
panels a year. Work on the se-
cond phase is being planned,
with a new extension for MV
panels and a new product line.
“Our expansion to new prem-
ises in TechnoPark follows ex-
tensive market research. The
market for LV panels alone is
estimated at AED1.5 billion,
and Dynergy aims at tapping
this growing market. We target
a turnover of AED200 million by
2012. The new premises, devel-
oped with the support of Emaar Emaar Properties chairman Mohamed Alabbar, EII CEO Mohammed Saeed Al Raqbani and other executives at the Dynergy opening
Industries & Investments (EII),
will help us achieve our goal. establishing banking relations of its economies, institutional re- Al Raqbani said the expan-
“With a seven-fold increase and implementing strong corpo- forms and market liberalisation, sion of Dynergy Technologies
in production capacity, the rate governance measures. EII which all create opportunities to a new manufacturing facility
plant will help us meet our cus- also secured a partnership with for large-scale transactions.” in TechnoPark “will further em-
tomer requirements by provid- ABB Industries for Dynergy
ing high-quality, reliable and products, thus bringing in ad-
cost-effective products,” said vanced power and automation
Dynergy Technologies board technology to the company.
member Mahnad Kashani.
Dynergy Technologies focuses KEY DRIVER
on facilitating energy solutions “The industrial and manufac-
for local communities, hotels turing sector is fast evolving as
and construction projects. It is a a key growth driver of Dubai’s
subsidiary of EII, a member of economy, with small and me-
Emaar Properties PJSC. dium enterprises accounting
EII, as a facilitator of the in- for up to 98.5% of Dubai’s busi-
dustrial and manufacturing sec- ness sector and 61% of the total
tor, supports Dynergy in busi- workforce. EII complements
ness development, marketing, the diversification efforts of the
Dubai government by provid-
ing tangible and strategic sup-
port to industries in achieving

AED1.5 their larger growth goals,” said


EII CEO Mohammed Saeed Al
Raqbani.
BILLION “The region presents an attrac-
tive opportunity for private in-
The market for LV panels vestments in the manufacturing
sector due to the planned growth EII has secured a partnership with ABB Industries for Dynergy products

6 MEP Middle East | April 2010 www.constructionweekonline.com


UPDATE

Dynergy aims at tapping this growing


Independent Technical Solutions LLC
market. We target a turnover of AED200 P. O. Box: 62447 Dubai
Tel: +971 (0)4 2679885 Fax: +971 (0)4 2679886
million by 2012.“ – Mahnad Kashani
Email: sales@intechsolutions.ae

power the company to enhance as IEC, Dynergy expects the


its production capacity, and new facility to drive its expan-
· · Car
Industrial quality Pressure
Park Induction Independent Flow Control Valves.
& Jet Fan
also seek new geographic mar- sion into new markets in the · Ventilation
Maximize your Delta T and minimize energy use with Flow Control
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Website: that translates to high Delta T and efficiency gains.
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opportunities and expand its part of its commitment to sus- · Other benefits includes 5 – Year Warranty, 3 Pressure / Temperature
Ports, Lifetime Serviceability, Guaranteed DeltaT, Flow Predictable
product range.” tainable development.
To + / - 5%
Providing turnkey solutions The new plant also has sev- Website: www.flowcontrol.com
in LV and MV switchgear, eral energy-effi cient practices
Dynergy was previously oper- in operation, with production
· High Efficiency Capture Jet Hood · Mist Eliminator
ating out of small rented prem- taking place under a sunlit · Ultra Violet Kitchen Filtration System · Low Displacement
ises with a production capac- semi-glassed roof, and using · Automatic Water Wash Hood System Ventilation Equipment
ity of only 4 000 panels a year. pneumatic tools system to save · Ventilated Ceiling · Grills & Diffusers
TechnoPark was selected as an electricity consumption. · Service Distribution Unit · Chilled Beams
·· Ecology
Car ParkUnit
Induction & Jet Fan · Oil & Gas Dampers
ideal base for its own premises Dynergy is a member of Ventilation System. Hood Control
· MARVEL Intelligent · Blast Valves
following an in-depth survey the Emirates Green Building · System
Tunnel Ventilation System. · Cabin Ventilation Unit
on various zone options in the Council, and currently runs · CO & Smoke
Website: Detection System.
www.halton.com
Emirate. a third-party assessment for Website: www.hcgroep.com
greenhouse gas emission as the
CAPACITY EXPANSION fi rst step to becoming a carbon-
“The capacity expansion and neutral entity.
economies of scale that the new Dynergy offers complete
·Industrial quality Pressure Independent Flow Control Valves.
plant brings will create a com- power distribution solutions
··
Maximize your Delta
High Efficiency T and
Capture Jetminimize
Hood energy· Mistuse with Flow Control
Eliminator
petitive advantage for Dynergy. for 400 V. It will also be provid- ·Ultra Violet Kitchen Filtration System · Low Displacement
DeltaPValves.
The new plant will also assist ing solutions to cater for up to ··Automatic
The Water
only Valve Wash
that Hood System
GUARANTEE Delta T Ventilation
performance Equipment
us in further emphasising re- 22 kV three-phase power. The ··Ventilated
High Ceilingthat translates to high Delta
technology · GrillsT & Diffusers
and efficiency gains.
search and development sup- product range includes LV main ··Service
Other Distribution
benefits Unit5 – Year Warranty,
includes · Chilled Beams
3 Pressure / Temperature
·Ecology
Ports, Unit Serviceability, Guaranteed
Lifetime · Oil & Gas
DeltaT, Dampers
Flow Predictable
ported by adequate technical distribution boards, MV distri- ·MARVEL Intelligent Hood Control · Blast Valves
To + / - 5%
expertise,” said Kashani. bution boards, sub-main distri- System · Cabin Ventilation Unit
Website: www.flowcontrol.com
With all products type-tested bution boards, fi nal distribution Website: www.halton.com
as per the specifi cations of an boards, capacitor banks and
independent quality certifi ca- motor control centres, among
Flow Meters
tion authority in the UK as well many others.
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The official tour of the new production facility

www.constructionweekonline.com April 2010 | MEP Middle East 7


UPDATE

US$144m Abu Dhabi water system


The project is a turnkey mechanical, electrical and automation solution
WATER “ABB’s integrated power and
ABB has won a US$144 million automation technologies will
turnkey order from the Abu help to provide a reliable and
Dhabi Transmission & Despatch efficient water supply to meet
Company (TR ANSCO) for a ma- growing demand for water and
jor expansion of a water trans- support sustainable develop-
mission system in Abu Dhabi to ment in the region,” said Peter
help meet the Emirate’s rising Leupp, head of ABB’s Power
demand for drinking water. Systems division.
The project will increase the The products supplied will in-
volume of water supplied by the clude pumps, with related surge
Shuweihat Power and Desalina- vessels and piping, energy-effi -
tion Plant to the City of Abu Dha- cient drives and motors, as well
bi by increasing the capacity of as the required extension of the
two pumping stations. The proj- electrical balance of plant. The
ect is scheduled for completion automation systems to manage
in 2011. The order was booked the operation and monitoring
in the fourth quarter of 2009. of the water pipeline will use
ABB will be responsible for ABB’s state-of-the-art System
the engineering, installation, 800xA control platform.
testing, commissioning and TR ANSCO is a subsidiary of
overall management of the proj- the Abu Dhabi Water & Electric- ABB will help to provide a reliable
ect, and will provide a turnkey ity Authority (ADWEA), which
mechanical, electrical and au- is responsible for developing the and efficient water supply to meet growing
tomation solution for the ex- high-voltage power and bulk wa-
tension and modification of the ter transmission network in the demand for water and support sustainable
Shuweihat and Mirfa pumping Emirate of Abu Dhabi.
stations. development in the region.“ – Peter Leupp

Marina development in Abu Dhabi remains buoyant


MARINE WORKS Kingdom of Saudi Arabia and
Water-infrastructure specialist Qatar, added Birtwistle.
Septech is seeking to boost its “We are very realistic in our
Abu Dhabi-based Marine busi- outlook. Whilst the pace of ma-
ness following its presence at rina development has certainly
the 2010 Abu Dhabi Yacht Show. slowed with the contraction of
“Globally marina develop- the regional property develop-
ment has suffered enormously ment market, we nonetheless
from the economic downturn, feel confi dent our business po-
but in contrast we are seeing a sition and our exclusive part-
marked growth in demand from nerships leave us well-placed
the Emirate of Abu Dhabi,” said to succeed in the current mar-
Septech marine business unit ket, especially as developers
manager Bruce Birtwistle. become more discerning in
“We estimate that the drop their choice of suppliers,” said
in global demand has reduced Birtwistle.
revenues by 20%; we are fortu- The 2010 Abu Dhabi Yacht Show was hosted on the Septech-constructed Yas Marina In addition to the Yas Mari-
nate to be operating in one of na, completed prior to the Abu
the few markets still showing on the Septech-constructed Yas tech portfolio have opened the Dhabi Grand Prix, Septech is
forward progress on marine Marina. door for the marine unit to focus currently constructing two ma-
development.” The 2010 Abu Recent project wins in Oman on Muscat, and new projects are rinas in Dubai and a variety of
Dhabi Yacht Show was hosted for other businesses in the Sep- increasingly cropping up in the fi shing harbours in Oman.

8 MEP Middle East | April 2010 www.constructionweekonline.com


UPDATE

DSWP wins Khalifa A utilities works


Now responsible for all infrastructure, following earlier district-cooling contract
CONTRACT managing and controlling in- ending 31 December 2009. It
Drake & Scull Water and Power frastructure, water and power recorded AED2.2 billion in rev-
(DSWP) has clinched a contract works was the surety we would enue for the same period.
for the complete utilities devel- continuously have a demand in The results showed an annual
opment works at the Khalifa A the market to cater to. This has profit of AED280 million for the
City residential compound in indeed been the case till now due calendar year starting 1 January
Abu Dhabi. to the non-diminishing demand 2009 and ending 31 December
This follows an earlier AED118 for water and power, which are 2009, a year-on-year profit in-
million contract for a 20 000 TR the basic elements needed in any crease of 32%, up from AED212
chiller plant and two thermal community,” said DSWP execu- million in 2008. Annual revenue
storage tanks. The value of the tive director Tawfiq Abu Soud. totalled AED1.89 billion, up from
latest contract is not known. “This contract win marks the AED1.72 billion in 2008, a year-
DSWP, a subsidiary of Drake & eighth for DSI in 2010, bringing on-year increase of 10%.
Scull International PJSC (DSI), the total value of projects award- “DSI had a positive year. Given
is now overseeing all relevant ed to date to AED1 billion,” said that 2009 was challenging, this Khaldoun Tabari
infrastructure works, including DSI CEO and vice-chairman was an extraordinary end to the
sewer lines, irrigation, telecom Khaldoun Tabari. year. Our performance in 2009 to invest in our growth strategy
services, fi re-fighting, substa- In related news, DSI reported ratified the strength of our man- and engineering capabilities for
tions and related civils such as net profits of AED333 million agement team, the resilience of the benefit of our employees,
roads and paving. for the fiscal year starting 17 our business model and the in- clients and shareholders,” said
“One of the motivating fac- November 2008, the date the novation of our integration en- Tabari. “The company per-
tors for us in deciding to form company was incorporated as a gineering. As 2010 proceeds, we formed in line with our expecta-
a business stream dedicated to public joint stock company, and remain optimistic as we continue tions and strategic priorities.”

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www.constructionweekonline.com April 2010 | MEP Middle East 9


UPDATE

Technical manager for Gulf region


Appointment will strengthen Marshall-Tufflex’s presence in the region
APPOINTMENT troducing Electrak systems to prefabricated wiring systems.
Cable management specialist the GCC region. The concept behind the MT32
Marshall-Tufflex has strength- His appointment reinforces prefabricated wiring system is to
ened its presence in the Gulf by Marshall-Tufflex’s commitment take all the hard work out of elec-
appointing Svetislav (Bata) Bula- to supporting its international trical installations by providing
jic to the newly-created position customers and helping them completely pre-wired, pre-tested
of international technical sales make the most of its recent tech- plug-and-play electrical wiring
manager. nological advances in cable man- for projects.
Dubai-based Bulajic brings agement and prefabricated wir- It is the MT32 technology – the
with him a strong technical back- ing systems. development of the unique 32A
ground, which Marshall-Tufflex As international sales director connector that, in combination
is keen to exploit fully for the Tracy Masters explained: “We with the entire range of Marshall-
benefit of customers throughout know our Gulf customers are Svetislav (Bata) Bulajic Tufflex modular and prefabricat-
the UAE, Qatar, Saudi Arabia, keen to adopt our latest innova- ed plug-and-play wiring systems
Iran, Kuwait, Bahrain, Oman, tions, and Bulajic’s appointment quirements through what are – offers a total electrical wiring
Iraq and Yemen. is absolutely key to achieving virtually bespoke design solu- solution for a project, eliminating
One of Bulajic’s key areas of this. His background in design tions for power and data provi- hard wiring on-site and thereby
expertise is underfloor power through to commissioning of sion. His appointment is critical saving time and reducing costs.
distribution, having previously a range of solutions, together to what our customers are trying MT32’s ‘zero harm, zero waste’
worked for EKA Building Sys- with his knowledge and techni- to achieve, and we are delighted properties also provide easy
tems in Dubai on a number of cal expertise/focus, will give our to have him on board.” re-configuration wherever and
high-profi le construction proj- clients the opportunity to meet Bulajic’s main focus will be whenever re-positioning of sock-
ects, including successfully in- their ever more demanding re- on Marshall-Tufflex’s range of ets is required.

Trane launches Voyager Metito to build sewage


PRODUCTS nologies such as heat recovery and plant in Afghanistan
Trane’s new Voyager rooftop a modulating and condensing gas
units are now available in the lo- burner. SEWAGE TREATMENT ter and sludge form, are then
cal market, bringing increased The Voyager’s high efficiency Desalination and wastewater removed, and what remains is
energy efficiency and reliability makes it particularly suitable for treatment specialist Metito has clear and odour-free effl uent
to supermarkets, movie theatres, cold chain and storage applica- been commissioned to design, water that can be used for vari-
warehouses and other commercial tions, such as chocolate and flower supply, build and commission a ous applications.
and industrial buildings in Europe, storage. The new design allows sewage-treatment plant for the Decades of civil war has led
Africa and the Middle East. The the units to perform in extremely local government in Kabul, Af- to the devastation of the Af-
easy-to-install systems replace the warm or very cold environments. ghanistan to serve a population ghani economy, in addition to
existing Voyager rooftop unit line. Its ‘plug-and-play’ design, with a of 6 000 people. the destruction of much of Af-
The 15-165 kW packaged units single-point power connection and “Afghanistan has seen its ghanistan’s critical water infra-
offer a choice of cooling-only, factory-installed accessories, en- fare share of misfortune and de- structure, which affects many
gas-fired, heat pump or dual-fuel sures easy installation and commis- struction, which has negatively of its citizens. “The availability
technologies to meet specific cus- sioning. Comfort, operation, safety impacted its infrastructure, and of sanitation facilities is vital to
tomer cooling and heating needs. and accessibility are improved as a we are delighted to help with the the rebuilding of Kabul.
Additional energy-saving options result of a complete redesign of the rebuilding of the country,” said “We aim to improve the situ-
such as plate heat exchanger, heat structure. Metito group business develop- ation with this project, and
wheel, adjustable fresh air volume “Trane Voyager systems com- ment director Bassem Halabi. allow citizens access to the
and free-cooling are also available. bine high reliability and energy The plant is at the design and most basic of basics: sanitary
The new Voyager rooftop units savings, easier installation and less procurement stage. It will em- services. Afghanistan is not an
are Eurovent-certified (Class A ef- maintenance to deliver reduced ploy the latest in extended aera- easy place to work in, but with
ficiency for a number of units) with cost of ownership,” said Pierre tion technology, which purifies a dedicated team and support
a high Coefficient of Performance Cazal, vice-president equipment sewage by the destruction of or- from the local authorities, the
(COP) and Energy Efficiency systems for Trane commercial ganic compounds through the plant is expected to be com-
Rating (EER). Additional energy business in Europe, Middle East, use of air. These compounds, pleted by 19 May 2010,” said
savings can be achieved with tech- Africa and India. which are converted to gas, wa- Bassem.

10 MEP Middle East | April 2010 www.constructionweekonline.com


UPDATE

UAE-US trade empowered EVENTS

PROJECT QATAR
Empower CEO discusses means to foster bilateral trade 12-15 April
Qatar
BUSINESS and exchanging expertise be- www.ifpqatar.com
The CEO of Empower, Ahmad tween Empower and those US
Bin Shafar, has discussed ways companies engaged in the en- CITYSCAPE ABU DHABI 2010
to foster UAE-US business re- ergy sector in particular. The 18-21 April
lations at a meeting with the US delegation praised the lib- ADNEC, Abu Dhabi
newly-appointed US Consul eral business climate in Dubai www.cityscapeabudhabi.com
General Justin H. Siberell. Prin- in particular and the UAE in
cipal commercial offi cer Robert general. GULF WATER & POWER FORUM
W. Dunn was also present at the Siberell described the emir- 25-27 April
historic meeting. ate as a hub for the entire region, Bahrain
Bin Shafar, the head of the thanks to the far-sighted vision www.gulfwpf.com
largest district cooling service of HH Sheikh Mohammed bin
provider in the region, said the Rashid Al Maktoum, Vice-Pres- BUILDING SUSTAINABILITY
UAE is one of the top places to ident and Prime Minister of the INTO THE MIDDLE EAST
do business in the world, and US UAE and Ruler of Dubai. The 28 April
businesses are actively seeking delegation agreed that Dubai Dubai
to become a major part of this. was a success story with world- www.itp.net/events
On the other hand, among the class infrastructure. Ahmad Bin Shafar
most promising prospects for “Empower has succeeded in ARAB ENERGY CONFERENCE
US exports to the Middle East, building world-class district tial units are becoming increas- 9-12 May
according to the US Department cooling infrastructure, which ingly aware of the importance Doha, Qatar
of Commerce, is in the area of is considered an ideal econom- of using district cooling as an http://aec9.oapecorg.org
air-conditioning and refrigera- ic and environmental solution alternative to conventional AC
tion equipment. for residential and commercial systems, leading to energy sav- FM EXPO 2010
The meeting stressed the units, offices and hotels in the ings and increased environmen- 18-20 May
need for boosting co-operation UAE. I am pleased that residen- tal awareness.” Dubai International Conference &
Exhibition Centre
www.eventseye.com

Germany in solar JV with Qatar HARDWARE + TOOLS ME


18-20 May
SOLAR ENERGY Dubai International Conference &
SolarWorld, Germany’s big- Exhibition Centre
gest solar company by revenue, www.hardwaretoolsme.com
has acquired nearly a third of
a Qatar-based polysilicon joint ME WASTE SUMMIT 2010
venture in a move to shift pro- 18-20 May
duction abroad in light of rising Dubai Airport Expo Centre
labour costs at home. The joint www.turretme.com
venture, Qatar Solar Technolo-
gies (QST), will invest more FM Awards 2010
than US$500 million in the con- 19 May
struction of a solar-grade silicon Dubai
plant with a planned annual ca- www.itp.net/events
pacity of 3 600 tons.
Production is scheduled to Saudi Aircon
start in the third quarter of 2012. 23-26 May
German solar equipment maker Riyadh Exhibition Centre
Centrotherm will be technology www.eventseye.com
partner for the Qatar-based joint Production will be moved abroad in light of rising labour costs at home
venture. SolarWorld is to own CONSTRUCTION WEEK RIYADH
29% of the joint venture, while German solar companies are as high labour costs in Ger- 8 June
partners Qatar Foundation and making great efforts in moving many, the world’s largest solar Riyadh Exhibition Centre
Qatar Development Bank will production abroad as looming market, are putting huge pres- www.itp.net/events
own 70% and 1% respectively. cuts in solar incentives as well sure on margins.

www.constructionweekonline.com April 2010 | MEP Middle East 11


UPDATE

DuPont appoints new ME director


Move reaffi rms company’s commitment to the Middle East market
APPOINTMENT held various regional and global In the past 15 years, the com-
DuPont has announced the ap- management positions in product pany has opened offices in the
pointment of Hartmut Reinke as management, R&D, sales, market- Middle East and invested in de-
its director for the Middle East, ing and administration, and has veloping local skills and talent. Its
Turkey and Africa. The move re- played a key role in spearheading team is constantly striving to offer
inforces the company’s commit- the strategic growth of DuPont in increased benefits, new products
ment to further strengthening Germany, France, the US, Swit- and solutions for its local custom-
its presence in the Middle East zerland and the UAE. He brings ers, based on DuPont science and
through the deployment of key se- a wealth of experience served as innovation. “DuPont is committed
nior leadership and coming closer DuPont’s director for Central and and well-positioned for acceler-
to customers in the region. Eastern Europe, the Middle East ated growth in the Middle East
Reinke is based in Dubai. He and Africa for three years. Hartmut Reinke region,” said Reinke.
joined DuPont in 1985, and has “DuPont is a science company DuPont is also focused on re-
creating sustainable solutions es- meet the increasing demand for gional opportunities such as the in-
sential to a better, safer, healthier food productivity; protect people frastructure boom, where US$105

US$105 life for people everywhere. Our


growth strategy for the long-term
is based on major global trends
and the environment; decrease de-
pendence on fossil fuels; and capi-
talise on the growth of emerging
billion in projects are planned
or are under construction in the
UAE. Construction contracts in
BILLION driven mostly by increasing global
population,” said Reinke.
markets where about one-third of
DuPont’s sales are currently gen-
Saudi Arabia’s real estate market
are expected to top US$60 billion
In infrastructure projects DuPont plans to capitalise on erated. “I am very excited about in 2010. Egypt and GCC econo-
are planned or are under global growth opportunities by prospects in the Middle East, an mies, including Kuwait, Bahrain,
construction in the UAE sharply focusing its innovation emerging market with immense Qatar and Oman, are also evolv-
pipelines on four mega trends: to potential,” said Reinke. ing at a rapid pace.

UAE is still a major source of high-quality contracts


CONSULTANCY “This is a significant and Dennis Brand, who writes a mercial and legal services di-
Specialist commercial consul- very positive step forward for high-profi le monthly legal col- rector and company secretary
tancy Traprain Consultants Ltd. Traprain. The office in Dubai umn for MEP Middle East, will of John Brown Hydrocarbons
is consolidating its presence in will increase opportunities for head up the Dubai operation. His Limited, and held a similar posi-
the UAE with the opening of our network of consultants to background is in commercial tion at CB&I John Brown Lim-
an office in Dubai. Despite the access not only the UAE mar- and legal areas, specialising in ited and its subsidiaries.
recent economic turmoil, the ket, but also other parts of the construction, development and In 2005, Brand relocated to
region still represents an ex- Middle East,” said Foreman. energy projects. Traprain Con- Dubai to join the construction,
tremely valuable source of high- The consultancy specialises sultants in Dubai will work in development and energy group
quality contracts, according to in offering a range of director- association with the UK-based of the Dubai office of London
CE Peter Foreman. level services to industries in- company, and act as a hub for all law fi rm Berrymans Lace Maw-
“Indeed, we believe that the cluding oil and gas, construction of Traprain’s consulting activi- er, with particular responsibility
problems in the construction and energy through a network ties in the Middle East. for its non-contentious construc-
market will provide us with of top-fl ight consultants. The Brand has spent many years tion and engineering practice.
opportunities. We also have a company sees the move as offer- in London with major law fi rms, In January 2008, he co-estab-
number of existing clients from ing further opportunities to in- advising on infrastructure proj- lished the Dubai office of HBJ
Europe and elsewhere with op- crease its reach, and to service ects in both the public and pri- Gateley Wareing, heading its
erations in the region, and this the activities of existing clients vate sectors. He later worked non-contentious practice, which
will enable us to service these operating in the region from a with Kvaerner Hydrocarbons, included construction, develop-
from a local base. local base. then part of the Kvaerner ment and engineering projects.
Group, where he oversaw in “There is a market for good-
There are large numbers of both particular its pre-contract and quality management consultan-
post-contract award activities, cy services providing specialist
indigenous and JV companies which need and the preparation and nego- contractual, commercial and
tiation of contract terms. corporate advice on a cost-effec-
high-order advice and training.“ – Dennis Brand He was later appointed com- tive basis,” said Brand.

12 MEP Middle East | April 2010 www.constructionweekonline.com


THE BIG INTERVIEW

Growth
trajectory
Turnkey MEP contractor Al Habtoor-Specon is showing strong growth despite the
downturn. MD Thrasos Thrasyvoulou explains why.

he company doubled its turn- ately through Al Habtoor Engineering. This tractor, with the traditional scope of HVAC,
over from 2008 to 2009, and was a boom time for contractors, who were plumbing and sanitary, electrical and BMS.
has enough projects in hand in search of reliable and qualified MEP spe- We also had a lot of experience in MV and HV
“to grow 50% this year as well. cialists to do an almost impossible quantity of substation work and transmission lines.”
Our strategic planning for work in terms of the timeframes and demands Hence an energy and power division was
the next three years is based of the industry,” says Thrasyvoulou. formed, culminating in the signing of a MoU
on a growth rate of 25% a year, to enter into a consortium with VINCI Ener-
based on our projections and INITIAL SUCCESS gies of France “to participate in and execute
the specific jobs we are being The initial success was also largely due to the projects in Qatar for MV and HV substations.
called to tender on. This is vast experience in MEP of the combined core The prequalification and representations to
reasonable growth under the circumstances,” team, which had garnered 20 to 25 years’ ex- the relevant ministry have been completed,
says Thrasyvoulou. “Our aim is to get involved perience prior to Al Habtoor-Specon arriving and we are in line to obtain documents for
in projects with other major contractors in the on the scene. “Most of the senior personnel the first tender. This three-billion Qatari Riyal
region and abroad, and to have exposure to a were part of an earlier establishment led by project will increase our works in hand sub-
broader client base.” myself,” says Thrasyvoulou. This also helped stantially,” says Thrasyvoulou.
An indication of just how fast the market to mitigate the impact of the global downturn
has changed is that when MEP Middle East in late 2008. “In fact, due to the pipeline avail- DIVERSIFICATION
spoke to Thrasyvoulou in July 2009, he was able with our partners, the downturn in the “Our diversification also covers the infrastruc-
confident that the company was well on its area, and specifically in Dubai, has not affect- ture, MV and external facilities in projects like
way to an impressive AED2 billion target. ed the growth of Al Habtoor-Specon as much, Sheikh Zayed University, Paris Sorbonne Uni-
“We have not achieved this level because of though the growth would have been higher if versity and Khalifa Port and Industrial Zone
the downturn, especially in Dubai, where a there had been no downturn, of course.” that the company is currently carrying out.
lot of projects have been postponed or re- Thrasyvoulou says diversification was a We also have qualified engineers and design-
designed, which will affect cash flow for a conscious strategy right from the beginning.
long period. In the interim we have become “Even though our project pipeline was big
an AED1 billion company, and our immediate enough to sustain us during the immediate
plan is to reach the AED1.5 billion level,” says shock of the downturn in this area so that we
Thrasyvoulou. kept on growing, I have always been a firm
Al Habtoor Engineering and Specon Lim- believer in not keeping all your eggs in a sin-
ited signed a memorandum of understanding gle basket. So at the time of the downturn we
(MoU) in October 2005, with the partnership only had about 20% of our business in Dubai,
registered officially in July 2007. Both parties and were not heavily affected.”
were already highly credible and experienced This was due to geographic diversification,
players in the market, so it was an auspicious as “you do not want to be in one area only.” As
beginning for the new company. The immedi- a result the company “expanded cautiously
ate result was “tremendous growth within a and steadily,” moving into Abu Dhabi and
short period of time,” says Thrasyvoulou. Qatar. “Geographically we are now tendering
This was due to the complementary na- for projects in Saudi Arabia, Kuwait, Bahrain
ture of the two parties, together with their and Oman as well, and other areas where we
well-established presence. “The second fac- hope to get business in order to diversify our
tor that contributed to quick growth was the portfolio.” Then there is diversification of spe-
pipeline of projects available to us immedi- cialisation. “We began as an A-Z turnkey con- Paris Sorbonne University

14 MEP Middle East | April 2010 www.constructionweekonline.com


THE BIG INTERVIEW

We may not see the


levels of the previous
boom again for some
time to come, but I
believe that there will be
enough business in Dubai
in the future. “
Thrasos Thrasyvoulou

ers in-house who are LEED-accredited, which go to the extreme of dropping prices to the “There are many other projects in the pipe-
is another trend in terms of green building level where quality is sacrificed and projects line, like New York University, Tawam Hos-
and sustainability. Needless to say, within cannot be executed properly. This is a danger- pital, Al Ain University and the Abu Dhabi
MEP we cater for complex systems like ELV, ous thing in my opinion. Clients must be very Airport. At present we are participating in
audio-visual, CCTV, fire alarm and fire fight- cautious in this respect. almost all of these tenders, and are optimis-
ing, for example,” says Thrasyvoulou. tic that some major projects will be secured,”
Commenting on the current state of the DUBAI HAS SUFFERED MOST says Thrasyvoulou.
market, he says: “Personally I believe that “Certainly the global economic recession Such optimism is based on the company’s
after the initial shock of the downturn in late has affected all countries. In the UAE, Dubai, good engineering background and in-house
2008, the market in general has absorbed this due to the previous unsustainable boom and design capability. A big problem to date has
and stabilised. I do not foresee a much bigger the sudden global downturn, has suffered been the time constraints demanded by cli-
downturn; I cannot say we have reached the more than other areas in the Gulf in terms ents in order to enable them to capitalise
absolute bottom either, because there are so of growth, fewer new projects, a slowdown in speedily on their returns.
many factors involved. existing projects, especially hotels and resi- “Often the design is not completely finished
“From a personal point of view, I do believe dential/commercial developments. I believe and the scope is not very well defined. Then
we are nearly at the bottom. One thing I am that, after the initial shock in 2008 and the if the MEP contractor does not have the capa-
sure about is that the liquidity, the availability sustained recession in 2009, 2010 will still be bility to check the design in terms of system
of money through the banks, is better than a low-growth year – specifically in Dubai, but workability, the end result will be a project
a year ago. During the downturn, finance for even in general in the Gulf region.” with problems. MEP is the biggest single ele-
projects was largely unavailable, as banks Thrasyvoulou says this view is reflected in ment after the main contractor in a building
were in a more difficult position than contrac- a shift in the market. “In terms of work, there project. Buildings suffer if the air-con does
tors even. These days I am optimistic that is a definite shift from the residential/com- not perform properly or there are plumbing
even if we are not at the bottom, we are nearly mercial sector to education/healthcare and problems at the end. We are a major part,”
there and that the liquidity is getting better. industrial/infrastructure work – what I call concludes Thrasyvoulou.
“I believe that opportunities are good in the traditional sectors.
areas like Qatar, Kuwait, Saudi Arabia and “Our recent success in carrying out two of
CURRENT PROJECTS
Bahrain for an MEP contractor of our qual- the major educational projects in the area –
ity and depth. Weaker companies have closed Sheikh Zayed University (in a joint venture • Paris Sorbonne University, Abu Dhabi
down or merged, and the number of major with Hastie) in the magnitude of AED540 • Sheikh Zayed University, Abu Dhabi
competitors capable of executing big projects million and Paris Sorbonne University (in • Rotana, Shangri-la, Merweb in Doha
has been reduced,” says Thrasyvoulou. the magnitude of AED240 million) – is itself • Saadiyat Island accommodation, Abu Dhabi
However, increased competition for a evidence of this shift. “Both of these projects • Khalifa Port and Industrial Zone, Abu Dhabi
diminished pool of projects has placed in- include related infrastructure works and • Kempinski Residences, Dubai
creased pressure on pricing. “I have recently complex specialised systems. In addition, the • Masdar Institute of Science and Technology
seen a drop in prices. A lot of MEP contrac- Khalifa Port and Industrial Zone project we • Works on Dubai Pearl
tors, in order to sustain themselves, are be- secured recently, in the magnitude of AED320 • Business Bay Hotel, Dubai
coming more competitive. I hope they will not million, verifies this further.

www.constructionweekonline.com April 2010 | MEP Middle East 15


PROFILE

HEATING UP
Ariston Thermo Middle East marketing manager Emanuele Stano explains why the
water-heating market in the region is hotting up.

What is Ariston Thermo’s history in the Mid-


dle East?
In the water-heat
water-heater sector, Ariston is
The Ariston Thermo Group, oup, formerly the
Merloni TermoSanitari Group,
roup, has been op-
the major player in the UAE market
erating in the Middle Eastst region for more
than 30 years, together with our partner
today, with internal marketing
Paul Weil Company LLC, C, which operates
in some of the countries of the region. We
estimations giving us a market share
entered the market with our historical core about three times
tim larger than our
business product, electricc storage water
heaters, and have sold several
everal million of nearest
nea competitor. “
them in our long presence e in the market.
Nowadays Ariston has a unique recogni- Emanuele Stano
tion in the market thanks to the proven qual-
ity shown over three long g decades. In the
last five to six years we have also launched 10 to 3 000 lit
litres. We are also commercial-
new product lines such as gas boilers and ising instantan
instantaneous electric and gas water
solar systems. st
heaters, gas storage water heaters, gas boil-
ers and solar sy
systems. In 2010 we are launch-
How important is the MENA NA region to revolutio
ing a revolutionary range of sanitary water
the global group? heat pumps, andan as per the evolution of our
We have launched our different
ferent water heater rrange, in accordance with the
product lines in the 13 coun-
un- latest Europea
European directives on energy saving,
tries that we are managing g introd
we are introducing a comprehensive new
from our Dubai offices. product range with new aesthetic and tech-
These do not include nical features.
North Africa; but from
Dubai we also cover Can you tell us a bit more about your Nanomix
the Levant countries, innovation?
KSA, GCC, Iran and Af- This provides m more hot water in comparison
ghanistan. The Ariston with a traditio
traditional water heater of the same
Thermo Group has a Spe cally, a special water inlet
capacity. Specifi
total turnover of above guara
pipe guarantees 10% more hot water out-
US$1.8 billion, with a put. It is based on improved mixing
global sales network efficiency: during a water draft,
which distributes in more e no
normally the cold inlet water
he
than 150 countries. It is the ‘di
‘disturbs’ the hot water inside
most international player in th tank, so that the outlet water
the
its sector, with almost 50%% of te
temperature will go below the
sales coming from outside e EU co
comfort value of 40°C. The spe-
countries. cial inlet pipe keeps the cold and
w
hot water layers well-separated, so
ces do
What products and services that th
the water draft can last longer
you offer here? outle hot water will reach later a
(the outlet
In our product portfolio for the temperature b below 40°C).
ffer dif-
Middle East region we offer
ferent models of electric storage liatio with Europe obviously means
Your affiliation
ties from
water heaters with capacities tre
the latest trends and developments get in-

16 MEP Middle East | April 2010 www.constructionweekonline.com


PROFILE

troduced to the MENA region quite quickly? Thanks to our presence over the last 30 years
Exactly. With six million water heaters pro- and the recognised quality of the products,
duced a year, and 19 factories all over the
world, the group must always respect the
latest and strictest regulations coming from
SIX Ariston continuously increased its presence
in this market, with several competitors ap-
pearing and disappearing in terms of the
any of the major markets. The Middle East
market, being supplied from the same facto-
ries which manufacture goods for Europe,
MILLION
The number of water heaters Ariston
competitive scenario. In the water-heater
sector, Ariston is the major player in the UAE
market, with internal marketing estimations
offer only CE-certified model ranges, which giving us a market share about three times
comply with European regulations in terms Thermo manufactures globally per year larger than our nearest competitor.
of safety and performance.
What are some of the major trends impacting
Do your products have to be adapted at all for and retail. With the booming growth in the on the market here? Are green building and
local conditions? real estate market over the last decade, a big sustainability major drivers?
Our product lines have been calibrated on effort was placed on tender sales, and this As a group, yes, this is a focus, with big in-
the most extreme conditions to satisfy the guaranteed us the biggest market share and vestment in solar systems, heat pumps and
market demands coming from any of the premium recognition today. We can answer energy-saving appliances. In the Middle East
150+ countries where we sell our goods. the demands for any hot-water requirement, we are in the starting phase, with a lot of in-
In our region, only KSA requires a special from domestic use to industrial. Nowadays terest being expressed in solar. It will still
safety valve to respect the SASO regulation. the opportunities are coming from the take some years to reach a mature market
Therefore we have a specific full line of prod- ‘green’ technology approach in new build- level in this regard. Sensitivity to energy ef-
ucts equipped with this accessory for our ings, but also from neighbouring regions ficiency has still not matured here. I am sure
Saudi customers. such as Eastern Africa and Central Asia. this will happen in the next few years. The
low cost of electricity is not pushing users to
What are the main markets you serve? What gives you the edge in such a highly com- save on energy consumption. However, the
We have dedicated sales teams for projects petitive market? government is putting much effort into this
new green trend, and the results will soon
LATEST TECHNOLOGY FOR THE MIDDLE EAST become apparent, with solar systems becom-
ing more and more popular in both domestic
The Ariston Thermo Group has launched a and commercial buildings.
new range of electric storage water heaters
(50 to 100 litre capacity) in the Middle How has the economic downturn affected
East. Anticipating continuous technological business regionally and globally?
innovation, and in respect of the latest Of course, the second half of 2008 and the
European standards on energy efficiency, whole of 2009 presented us all with a chal-
the Ariston worldwide product offering has lenging scenario. From this altered econom-
been updated. Commercialisation of the ic perspective, new opportunities emerged,
updated range in the Middle East began in and if markets such as Dubai showed a slow-
January 2010. down, others such as Abu Dhabi, Qatar and
Technical specifications such as the KSA kept on at high levels, guaranteeing
heating element power rate, voltage, tank an overall good performance for the area.
working pressure and external dimensions have not been changed at all. However, building on Emerging markets are still showing strong
the strong foundation of the renowned quality of Ariston products, certain improvements have growth. Globally this has been the occasion
been introduced to all models in the range. to revise some procedures in order to con-
These include Nanomix technology, which guarantees improved performance due to new solidate the growth of previous years and
internal components, a new unbreakable external thermometer, new finishing technology for to be even more competitive as soon as the
the external casing, new Italian-designed aesthetics and more resistant carton boxes. markets again start pulling in the sales.
The new PRO ECO model, thanks to electronic control, presents a wide range of features,
including the BEST control system, the ECO function for energy-saving, a front LED control What is your outlook for the year ahead?
panel with a ‘smart’ thermometer, an ABS safety package that includes active electric safety, In our sector we probably still have to face
an anti-overheating system, an anti-dry heating function, an auto diagnosis function and an the impact of the stopping of many real-
anti-bacterial function. Titanium Plus glass-lined is offered on the PRO ECO model. estate projects in the region. Few new con-
The existing Ti Tronic and Ti Tronic BEST ranges will be replaced by the new PRO ECO range. struction projects have commenced in the
The existing SG R range will be replaced by the new PRO R range, while the existing SGHP last 18 months, and this will mean little de-
range will be replaced by the new BLU R range. mand for water-heating appliances during
The Ariston Thermo Group, a global leader in heating and hot-water products, has a leading 2010 and 2011. However, as stated, this will
position in three key sectors: water heating, central heating and air-con, and components. Its be compensated for by new markets that we
range includes wall-hung and floor-standing boilers, water heaters, solar systems, heat pumps are exploring, along with new opportunities
and air-con. arising from the new product lines that we
are launching.

www.constructionweekonline.com April 2010 | MEP Middle East 17


LEGAL

All about the


SET-OFF
Dennis Brand from Traprain Consultants sets out what is
involved in a ‘set-off’.

A
sk almost anyone what ‘set- who is having the set-off applied against it
off‘ (sometimes called ‘contra- has no real opportunity to challenge the set-
charging’) means, and they off until it has been applied. However, set-off
will quickly provide an answer in such circumstances can only occur if such loan account with the same bank, not neces-
to the effect that set-off is provision is expressed in the clearest terms. sarily the same branch, and one of the ac-
where the amount of a claim Set-off, however, is important where it counts is behind in terms of repayment of the
is deducted from another lia- may be difficult to pursue the other party by debt. The bank may in such circumstances
bility, following which only legal action, or if they are at risk of becom- transfer funds from the customer’s account
the net sum is paid. Ask the supplementary ing insolvent. Let us return to the subject of which is in credit to pay the account which
question as to whether there is more than one types of set-off. There are four basic types: is in debt. Although banker’s set-off does not
type of set-off, and not so many answers will legal set-off, equitable set-off, banker’s set- require either a judgment of a court or arbi-
be forthcoming, and certainly not with such off and insolvency set-off. tration award before it can be applied, many
speed; however, more of that later. Legal set-off can only be used as a de- banks will inform customers by including
In construction and engineering contracts, fence to court proceedings, and the claims such set-off provision in the literature which
where set-off is to be applied within the same in respect of which set-off is to be applied customers are required to sign when apply-
contract, it is usually allowable if the claim must be defined or liquidated sums, which ing to open a bank account.
and liability are both liquidated sums – that can be proved. It is important that the claims Insolvency set-off is available in certain
is, defined amounts. Such contracts usually be both due and owing at the time when the jurisdictions where there is an established
provide for set-off in any event, although may claim is made. It is important also that the insolvency law and procedure, as in the UK.
require notice to be served. Some contracts, claims or debts be between the same parties Insolvency set-off cannot be varied by terms
particularly those being industry-standard and that they are held in the same capacity. written into a contract. There are very lim-
forms, will include provision for set-off and Unlike the examples discussed above in ited circumstances where set-off is permis-
describe the provision as such, whereas respect of construction and engineering sible in a bankruptcy or liquidation, because
others will include provisions which clearly contracts, legal set-off claims do not have set-off in such circumstances goes against
amount to set-off, but without mentioning to result from the same or even closely re- the rule in insolvency that unsecured credi-
the term. lated transactions. It is important, however, tors must be treated equally in respect of
Where set-off is to be applied as between to keep in mind that contra-claims which are their claims.
different contracts, this generally can only not defined or liquidated sums but estimates Insolvency set-off aside, it is acceptable to
be done if the contracts contain clear provi- when the set-off is proposed can only be con- include a clause within a contract which lim-
sion for it. However, this is not so unusual firmed following a court judgment or arbi- its or even excludes the right to set-off be-
where the same parties have entered into tration award, and cannot of themselves be tween the parties. If drafted properly, such
more than one contract between them, as in accepted as valid claims for set-off. clauses are enforceable and are not consid-
the case of supply contracts. What is more Equitable set-off is different from legal set- ered as being contrary to public policy. How-
unusual, however, is where set-off is allow- off in that it does not need court proceedings ever, that being said, such clauses must be
able between different parties to different to make it an available option for the debtor; drafted properly if they are to be enforced.
contracts – for example, where at least one moreover, contra-claims must be as a result Note, however, that the right to apply set-
of the parties, and possibly both, to a con- of related, if not the same, transactions. Un- off is variable in different countries, and it
tract are corporate entities and part of larger like legal set-off, claims can be for undefined is better to establish such a right in the con-
groups. or unliquidated sums – for example, damag- tract itself. Again, remember that each com-
Provision can be made in the contract that, es. The sums concerned must, at the time of pany is a separate ‘person’, and set-off rights
where there is a claim from another mem- the set-off being applied, be due and owing. generally only run within a particular con-
ber of the same group in respect of another If for an undefined or unliquidated sum, the tract and between the same parties. If you
contract, one party may set-off against the amount must be a reasonable assessment want something more extensive, it needs to
other the amount due (or claimed) by that and made in good faith. be stated clearly (and may be difficult to en-
other member of the same group. This may Banker’s set-off is where the customer of force in practice).
be considered somewhat unfair, as the party a bank has more than one current account or Dennis.Brand@traprain.com

18 MEP Middle East | April 2010 www.constructionweekonline.com


GENSETS

Genset suppliers
you should know
Gensets are used to supply electrical power in places where utility power is
unavailable, or where power is needed only temporarily.

ACTION AGGREKO ATLAS COPCO


Action’s fleet of gensets vary according to the Aggreko can supply generators from 15 Altas Copco provides portable and stationary
size of the project, and the power required. kVA to 2 000 kVA in single units, as well as generators. The company has reported in-
The biggest demand from the company at the multi-megawatt packages using 1 250 kVA creased activity in the larger 500 kVA to 1 000
moment is units between 500 kVA and 1 250 units linked together. Smaller sets are used kVA category due to power shortfalls in some
kVA. Some of these run separately, while oth- to power Portacabins, piling machines and urban areas, but it mainly supplies contractors
ers are connected to each other, thereby creat- hand tools, while construction cranes are usu- who require units in the 20 kVA to 275 kVA
ing a small power station. At present the bulk ally powered by 250 kVA or 320 kVA genera- range. The company believes there is a trend
of Action’s business is derived from Dubai, tors. Large-scale construction projects often towards buying as opposed to renting, as only
but the company is also serving Abu Dhabi require multi-megawatt power packages to 25% to 30% of generators sold go to rental com-
from its office and yard in Mafraq. power labour camps. panies.

20 MEP Middle East | April 2010 www.constructionweekonline.com


GENSETS

CUMMINS FG WILSON tionally lead growth in the GCC. However, the


Cummins Inc., a global power leader, is a FG Wilson designs and manufactures diesel slowdown due to the global economic crisis
corporation of complementary business units and gas gensets. Its most popular products has lead to a resurgence in renting as the pre-
that design, manufacture, distribute and serv- for construction sites range from 60 kVA to ferred method of acquiring gensets for the
ice engines and related technologies, includ- 500 kVA. It also gensets from 10 kVA to 2 200 construction sector.
ing fuel systems, controls, air-handling, filtra- kVA so as to be able to cater for customer de-
tion, emission solutions and electrical power mand. All these can be supplied as sound-at- KIRLOSKAR
generation systems. tenuated and weatherproof canopied gensets. Kirloskar’s 250 kVA genset is widely used
Headquartered in Columbus, Indiana in FG Wilson offers technical support from pre- at construction sites to power Portacabins,
the US, Cummins serves customers in more sales and aftersales support from installation labour camps and various other equipment
than 160 countries through its global network to commissioning. Its Middle East business and accessories required on-site. Over 50 000
of 550 company-owned and independent dis- includes Iraq and Afghanistan. Kirloskar green gensets are manufactured
tributor facilities, and more than 5 000 dealer annually, and all are ISO 9001/9002 accred-
locations. Cummins reported net income of HIMOINSA ited. Kirloskar Middle East FZE is located in
US$755 million on sales of US$14.34 billion Founded in 1982, Himoinsa is a manufacturer Ajman, from where it supports the entire re-
in 2008. of gensets based in Spain. It has suppliers gion. Kirloskar has a substantial share and a
Cummins Middle East FZE, the first whol- across the world, including the Middle East, presence in the engine and diesel genset seg-
ly-owned dependant distribution entity of which distributes its products and supplies ment in the GCC.
Cummins Inc. in the region, was established spare parts. The products found most popular
in early 2000 in order to strengthen its distri- on construction sites are Himoinsa’s 100 kVA MANLIFT GROUP
bution network’s reach and better support to 500 kVA units. Manlift Group distributes a large fleet of
the increasing engine population in the area. gensets built specifically for harsh conditions
It is headquartered in the Jebel Ali Free INGERSOLL RAND and extreme temperatures. These feature
Zone in Dubai, and is responsible for the Ingersoll Rand supplies 20 kVA to 600 kVA large internal fuel tanks for 24 hour opera-
UAE, Bahrain, Yemen, Qatar, Jordan, Oman, diesel gensets. Its business comes from al- tion. They range from 30 kVA to 1 250 kVA.
Afghanistan, Lebanon and Iraq. most all sectors that require electrical power. The company supplies the UAE and Qatar,
For more information, visit www.uae.cum- Business fluctuates from one sector to an- and has worked on the Dubai Metro, Palm
mins.com, e-mail cummins.middleeast@cum- other depending on the general economy. For Jumeirah, Dubai Festival City, Motor City, Al
mins.com, or contact +971 4 8830461. example, the construction industry has tradi- Raha Beach and Yas Island.

CAT GENSET FOR CHP APPLICATIONS

Caterpillar has announced the availability of econom


economy and stringent NOx
the G3512E advanced natural-gas-fuelled con
control. Its patent-pending
genset, designed for maximum efficiency in ai
air/fuel ratio control
extended-duty distributed generation and m
monitors charge air
combined heat and power (CHP) applications. density and maintains
Driven by a Cat electronically-controlled, NOx within tight
lean-burn gaseous-fueled reciprocating tolerances under a
engine, the G3512E genset has been variety of ambient and
designed to offer a high power density and load conditions.
excellent fuel efficiency, while maintaining It features an individual-
tight NOx control. It provides flexibility cylinde detonation sensing
cylinder
to operate on pipeline natural gas with a and tim
timing control, with a
wide range of methane numbers without precham
prechamber-type spark plug
sacrificing efficiency and performance, and design for
f extended service life
delivers up to 41.7% ISO electrical efficiency without adjustment. Additional
without water pumps. The Cat G3512E genset functionality includes an emergency
The Cat G3512E genset operates at 50 stop fuel-purge cycle and programmable
Hz/1500 rpm with the Miller combustion protective relaying functions.
cycle, is rated at 1 000 ekW, and has a It additionally features an open combustion The genset is easily tailored to specific
standard NOx emissions rating of 500 mg/ chamber design, which allows for a low- applications. Additional features include
NM3 at a separate circuit aftercooler (SCAC) pressure fuel system of 10 to 35 kPa. exhaust options, alarm and remote
inlet water temperature of 54˚C. It is built A standard feature is a digital microprocessor annunciator modules and battery chargers.
on a heavy-duty, diesel-based platform and gas engine control module that automatically It is also available with an optional 250 mg/
uses an advanced camshaft and turbocharger and precisely regulates ignition, engine NM3 NOx emissions setting and 54˚C SCAC
design to achieve high mechanical efficiency. governing and air/fuel ratio for optimum fuel temperature rating.

www.constructionweekonline.com April 2010 | MEP Middle East 21


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CABLES

Wired for growth


The Middle East as a developing region is boosting global growth in electricity
consumption, which is good news for cable makers. This was the message from Dow
Wire & Cable global marketing director Jon Penrice at Middle East Electricity 2010.
enrice said that, although
the global recession has re-
sulted in a dip in electricity
consumption, particularly
in the West, “We foresee
consistent growth in the de-
veloping economies of China,
India, Latin America, Africa and the
Middle East. These are all markets
that will grow at plus 5% on average.
So that is going to put tremendous pressure
on infrastructure. The infrastructure is not
there to be able to accommodate that kind
of electricity growth today. That 5% consist-
ent growth is going to require 5%, 10%, 15%
growth in infrastructure.”
Dow Wire & Cable has entered into a
collaborative partnership with local cable
manufacturer Ducab. “Our philosophy is
very much that you cannot have a quality
cable without quality compounds. The trick
in terms of delivering long-term reliability is
two companies working very closely togeth-
er. We are fortunate to have a partner like
Ducab, with whom we have been working
for 12 years now. The development of that
partnership and technical collaboration has
been truly exceptional. That is what really
lies at the heart of quality.”
Dow Wire & Cable is a business unit of
Dow Chemical Company that focuses ex-
clusively on the wire and cable industries.
“We do not make wires and cables, but the
components that are critical to those cables.
We engage across the entire value chain, as
we believe in understanding the entire needs
all the way through from the industrial end
user, and trying to bring that back into our
R&D. As a group we spend US$1.5 billion on
R&D, so we have a tremendous capability in
this regard.”
Penrice pointed to four mega trends that
Dow Wire & Cable has identified that will
drive future opportunities across all its busi-
Dow Wire & Cable, a business unit of Dow Chemical Company, manufactures critical ness interests, which run the gamut from
components for wires and cables heavy and medium voltage to consumer
electronics, automotive and building and

www.constructionweekonline.com April 2010 | MEP Middle East 23


CABLES

construction. These are health and nutrition, about 12 years from starting a project to
energy, transportation and infrastructure getting approval. It really has become such
and consumerism.

ASPIRATIONS
US$ a political process it is almost impossible to
get new overhead lines.

“Some 6.5 billion people have the same as-


pirations in terms of the cars they drive and
1.5BN “So increasingly as the technology contin-
ues to develop, and high-voltage technology
in particular, the alternative of transmission
the type of air-con they want for their homes, The Dow group’s R&D budget underground has grown from what has
which we believe will drive electricity con- been a relative niche in the industry to very
sumption in a significant and sustained way. much a mainstream, and one we believe will
There is a huge need for infrastructure de- become even more competitive and main-
velopment, as very much highlighted in New York, for example, is 100 years old and stream as a means of transmitting electric-
the Middle East. Infrastructure needs will is crumbling. So there are investment oppor- ity,” said Penrice.
be a long-term mega trend that will drive tunities not just in developing markets, but Growth in the global cable industry is
growth,” said Penrice. in mature markets as well. predicated on finding solutions for transmis-
“The issue is not just about growth in “Then there are the new challenges sion efficiency and longevity. “How do you
emerging markets. In developed markets, posed by climate change and renewable en- get more out of your existing infrastructure?
the power infrastructure -- especially in the ergy. I think energy efficiency has always How do you put the economic case for reli-
US and many parts of Europe -- is old and been something this industry has not re- ability and longevity? In terms of installation,
needs renewal. The power infrastructure of ally focused on, in that the 9% average loss it costs roughly three times more to bury a
between the generation and an consumption cable than it does to make it. So if we are go-
of electricity has always be been one of those ing to make underground cables more cost-
things that nobody talks ab about. As soon as effective, then the cost of installation needs
you start putting a price on that 9% in terms to come down.”
of how much you are goin going to have to pay On the issue of environmental awareness,
for carbon emissions, that 9% becomes real Penrice said that “although green is a very
money, at which point there
the is going to be broad subject, it refers to sustainability of
a tremendous focus on reducing
re it. There materials and energy efficiency in particular.
is not one magic solution,
solution but we believe Again this is something that this industry
that energy efficiency iis going to be a has not really focused on. There are many
major driver. other industries that have green as almost
Another trend is the g global investment their number one driver. But we see it as
in renewable energy. “For the cable indus- coming in the cable and power industry as
try, solar power is an even bigger opportu- political pressure, and climate change in par-
re
nity. The average yield of renewable energy ticular, is brought to bear.
is 20% due to weather variab
variables, but you still
infrast
need the same cable infrastructure. Renew- RELIABILITY
able energy also tends to ffocus on remote “What matters to everyone is having a sys-
locations, which meameans concomitant tem in the end that is the most reliable and
t
growth in the transmission and cost-effective. What often happens with a ca-
distribution sectors,” said ble buyer is they want the cheapest cable …
Penrice. so is the cheapest cable the lowest cost ca-
ble? No. The cost of a cable is around US$3/
URBANISATION
URBAN
Rapid urbanisation is
le
also leading to growth
und
in underground cable For the cable industry,
instal
installations. “The
days of running ca-
solar power is a big
bles in overhead
line
lines is getting
opportunity. Renewable
more
mo and more
dif cult. As big
diffi
energy focuses on remote
cit
cities
gr
ground
grow, under-
installa-
locations, which means
ti
tions are growing growth in transmission and
fa
faster. I think in
th US now for
the distribution. “
a new overhead
line you need Jon Penrice

24 MEP Middle East | April 2010 www.constructionweekonline.com


CABLES

There is a huge need for


infrastructure development,
as very much highlighted
in the Middle East.
Infrastructure needs will be
a long-term mega trend that
will drive growth. “
Jon Penrice

foot. However, the major cost is not the cable loss. “The average is 9%, which is a global Inside is really a strategy aimed to try and
itself, but in the operation. The initial cable figure, but it can be much higher if you have raise awareness of the importance of quality
costs 14%, what we call the lifetime cost of commercial losses. Best practice globally is in the industry. The lowest-cost, most relia-
the cable, while the installation is nearly 4% to 5%. In terms of a cable with a 40-year ble cable system is built on high-quality man-
three times that at 40%. This is where the lifespan, that energy loss accounts for about ufacture of compounds and semi-conductive
longevity and reliability issues come in, to- a third of the cost. That is just the cost of all the way through to the cable itself.
gether with asset management. If you end the electricity losses; it does not include the “Our approach with Dow Inside is to go to
up in an asset-replacement strategy, you will carbon costs that may accrue. the marketplace itself and point out the im-
end up facing significant replacement costs,” “So our philosophy is really to tackle the portance of these quality standards. Quality
said Penrice. big picture: the cost of installation, reliabil- standards around the world are very varied:
An invisible element of the cost calculation ity and longevity, and see how we can bring some are demanding, while some are not.
that is often ignored is the issue of energy solutions to bear to reduce that cost. Dow Standards tend to be negotiated in commit-
tees, which will go for the lowest common
denominator, and so standards get diluted.
DUCAB CELEBRATES 30 YEARS In the end they become minimum standards,
which I think is normal.
Ducab, a leading manufacturer of high-quality products, and hosted a series of joint seminars “But there are better alternatives. We
power cables in the Middle East, showcased with Dow Wire & Cable and FM Sudafix. see the opportunity for high-performance
its latest technologies in cable manufacturing “This year Ducab is celebrating 30 years cables. Rather than change the standards,
at this year’s Middle East Electricity Exhibition of powering the region as a manufacturing which can be a very long process, it is far
at the Dubai International Convention and leader,” said MD Andrew Shaw. Ducab has better to have high-quality cables from the
Exhibition Centre. The company displayed launched a new office in Qatar and is also start and say these are the benefits that can
products from its Special Cables Unit, planning a number of expansions outside of be achieved. But this can only work if we
launched a new range of Ducab Connect the UAE market. have a combined collaborative approach in
the industry,” said Penrice.

www.constructionweekonline.com April 2010 | MEP Middle East 25


MARKET ANALYSIS

The big MEP rebound


Senior research analyst Vivek Vijayakumar talks about Frost & Sullivan’s latest
research report on the MEP sector in the GCC.

How has the economic crisis impacted on


the MEP sector?
The growth rate of
MEP services are an integral part of build-
ing activities, and the most demanded serv-
MEP services in the GCC
ices within the construction sector, as it is
required to keep building functions fully op-
over the last three years was
erational. So any impact on economic growth
will directly impact the growth of the con-
around 19% ... it tumbled to
struction sector – which, in turn, will impact almost 5.5% between 2008
the growth of MEP services.
The growth rate of MEP services in the and 2009.“
GCC over the last three years was around 19%,
a period when there was a boom in the con- Vivek Vijayakumar
struction sector and oil prices were soaring.
However, the growth rate showed a slight dip
in 2008, and tumbled to almost 5.5% between one or two of the three types of services by
2008 and 2009 due to the sluggish economic competing directly with other contractors
and financial outlook, thereby reflecting the or by sub-contracting with top companies,
reduction in construction activity. thereby providing more opportunities for the
We expect the market to grow at a com- growth of local players.
pound annual growth rate of 11% during the We have noticed that many civil contractor
next five years, showing a gradual incline companies/real estate developers are try-
in growth during the end of 2010 or at the ing to enter the MEP services market with
beginning of 2011 till 2013 owing to higher their in-house technical capabilities in order
investments in real estate and infrastructure
projects, mainly because of the GCC’s signifi-
cant market characteristics and resilience. MEP Services Revenue in GCC
You state the sector was valued at US$13.53
billion in 2008. What are the criteria for
this figure?
The criteria are based on the comments and
25000
estimates from major market participants on
the overall market size across GCC coun-
tries; their perceptions and expectations on 20000
Revenue (in USD million)

the current and future market have also been


taken into consideration. Finally we summed
up their revenues using a bottom-up approach 15000
to estimate the market. We also considered
the overall population of small, medium and
large companies in each of the six GCC coun- 10000 22446.4
tries and the percent share they account for
based on the revenue bracket they fall into
through considerable sample-size coverage.
13539.9
5000
You talk about a ‘fragmented and highly
competitive market’?
The market is fragmented and highly compet- 0
itive mainly because of the presence of many
2008 2010
small and medium scale companies at the lo- Year
cal level, which have capabilities to do either

26 MEP Middle East | April 2010 www.constructionweekonline.com


MARKET ANALYSIS

to maintain their profit levels. Many inter-


national companies are entering/expand-
ing into the market either through tie-ups
MEP Services Market Revenue in GCC by Countries
(with existing and established civil or MEP
contractors) or solely into potential markets
such as the UAE, Saudi Arabia and Qatar.
Apart from this there is not much consolida-
tion happening in the GCC market in terms
of MEP services.
MEP service providers are trying to get
2.9%
into the FM services business as a value-
41.8%
added resource (aftersales services) mainly 3.8%
to streamline their profit levels and to main-
tain their sustainability levels in order to of-
fer a comprehensive, one-stop service solu- 5.2%
tion and to balance the risk involved in both
businesses. UAE

Have the entry barriers into the MEP sector


12.3% KSA
changed significantly as a result? Qatar
Due to the reduction in construction activ- 34.1%
Kuwait
ity, increase in construction material and
labour costs, players are likely to assume Oman
higher risks and finally end up with lesser
profits, thereby resulting in limited or lesser Bahrain
entry into this market currently, which may
likely change in the future once MEP costs
go down. These are some of the barriers that • Delay in the commencement of construc- • Reluctance of existing players to take on
are likely to impinge the entry of global, re- tion projects due to lack of availability of large-scale projects that require a high level
gional and local players. funds; of technical expertise and innovation and in-
• Lack of investor confidence; volve a high risk due to the increase in con-
The sector ‘is likely to take off in 2011’? • Decrease in oil prices; struction commodity/material prices and
Yes, the reason is an increase in investment • Volatility in exchange rates; and labour costs;
from both the public and private sectors in • Higher inflation costs and construction • Delay in payment to the contractors due
real estate and infrastructure, which is ex- commodity prices etc. to insufficient fund reserves, which result in
pected to boost the market further during stoppage/postponement of projects;
the end of 2010 or at the beginning of 2011. Has the downturn brought to light any • Volatility in exchange rates and material
The factors that could impinge on this take- structural problems or deficiencies within prices, which tends to result in the resched-
off are: the MEP sector? uling of projects/tenders;
The following structural problems or defi- • Higher inflation costs are affecting project
ciencies are prevalent within the MEP sec- development directly by a delay in com-
MAJOR FINDINGS tor: mencement or sometimes even the stalling
• Higher attrition rates is a major problem of projects. In light of this, contractors are
• The most demanded services within the during the downturn, as emerging econo- instituting a two-stage tender process, which
construction sector are MEP; mies are drawing labourers away from the will allow them to keep a project moving
• The market was valued at US$13.53 region, posing a threat to manpower; without stalling, thereby removing risks as
billion in 2008. This is estimated to reach well as enabling efficient management of
US$22.44 billion in 2013, at a compound pricing and price inflation.
annual growth rate of 10.6%; MEP service provi-
• The fragmented and highly competitive
market is likely to take off in 2011; ders are trying to get into You state that Saudi Arabia, Qatar and Abu
• Saudi Arabia, Qatar, and Abu Dhabi are Dhabi are expected ‘to shore up the market
expected to shore up the market for MEP the FM business to main- for MEP services’?
services till 2013; Yes, the Saudi Arabia, Qatar and Abu Dhabi
• Many civil contractor companies/real
tain sustainability and economies are relatively insulated from the
estate developers are trying to enter the
MEP services market; and
to balance risk.“ financial downturn due to their surplus cash
reserves and the latest stimulus packages
• MEP service providers are trying to get Vivek Vijayakumar announced by their governments, providing
into the FM services business as a value- more opportunity for MEP services going
added resource. forward. According to Proleads, there are
around 2 837 real estate projects estimated

www.constructionweekonline.com April 2010 | MEP Middle East 27


MARKET ANALYSIS

to be worth in excess of US$2.4 trillion un-


der construction, with the bulk of the devel-
opment being carried out in Saudi Arabia
MEP Service Market Revenue in GCC by Services in
and the UAE.
Moreover, the Saudi Arabia and Qatar
economies were considered to be profitable
for MEP services in the range of 9.5% to 10%
due to their uninterrupted construction ac-
tivities, backed by government spending, es-
pecially in the infrastructure sector, whereas
the UAE is considered to be even more prof-
itable than its neighboring counterparts, in 19.2%
the range of 10% to 11%, and it will remain the
same due to its steady focus on huge iconic 37.6%
and sophisticated projects.

Has there been much of a ‘brain drain’ due


to the downturn?
Yes, the downturn in GCC nations has cre-
ated job insecurity, thus causing higher at-
trition rates. These are some of the reasons 43.2%
for drawing labourers away from the region
as the emerging economics are providing Mechanical
opportunities in terms of job securities and
higher salaries. The impact is greater on the Electrical
informal sector due to reduced profit mar-
Plumbing
gins as a result of players being unable to
sustain their competitiveness amidst higher
inflation, construction material and labour

MEP GETS A LEG UP WITH THE EXPANSION OF THE CONSTRUCTION INDUSTRY,


A surge in population, economic expansion thanks to their surplus cash reserves and the of labour, which could severely constrict
and subsequently higher investments in latest stimulus package announced by the contractors’ profi t margins.
real estate and infrastructure projects have government. The market could also be adversely affected
generated considerable oil revenues and “Moreover, improved awareness about energy by the labour drain, as emerging economies
consequentl, cash reserves, aiding the and environmental sustainability, as well as are drawing labourers away from the region.
exponential growth of the GCC construction public health and safety concerns, are expected In such a scenario, it has become vital for
sector. This development of the construction to go a long way in boosting the market for a company to recruit and send employees
industry bodes well for the MEP services MEP services in the next five years,” says Frost to training institutions to hone their skills,
market, since it is considered an integral & Sullivan research analyst Vivek Vijayakumar. initiate training in-house or provide on-the-
service within the construction industry. “Already the most in-demand service of the job training.
New analysis from Frost & Sullivan, entitled construction industry, MEP’s popularity will However, contractors can skirt the
‘Strategic Analysis of the Mechanical, soar further with the strengthening of the issue of manpower through technological
Electrical and Plumbing Services Market in GCC’s commercial, residential, hospitality, developments, which will limit on-site
the Middle East’, finds that the market earned infrastructure, and educational sectors.” prefabrication and thereby lower time
revenues of US$13.53 billion in 2008, and Meanwhile, the GCC has mandated all types and manpower needs on-site and boost
estimates this to reach US$22.44 billion in of buildings to install technologies and services productivity hours. Additionally, the
2013, at a compound annual growth rate of that will make them environment-friendly. involvement of design engineers in the early
10.6%. Owing to such constant demand, contractors stages of construction and correct selection
The fragmented and highly competitive are continuously upgrading their services by of materials will ensure proper building
market is likely to take off in 2011, once the investing in in-house pre-fabrication, design, integration and sustainability by reducing its
effects of the recent economic slowdown and and service capabilities to diminish the strong operating costs.
reduced construction activities wear off and bargaining power of the end users. “To gain a competitive edge, it is critical
the economy rebounds. Nevertheless, Saudi Such measures will involve dealing with the for MEP contractors to offer scalable and
Arabia, Qatar, and Abu Dhabi are expected escalating cost of construction, construction comprehensive contracting service solutions
to shore up the market for MEP services commodity prices, and labour cost. The prices as a one-stop shop, and back it up with
till 2013, as their economies are relatively are not likely to decrease due to the steady effective qualified manpower for project
insulated from the financial downturn, global demand and rising accommodation costs design, installation and service support,”

28 MEP Middle East | April 2010 www.constructionweekonline.com


MARKET ANALYSIS

costs, weaker financial background and lack down after a year. These companies gener- prices and labour costs, we expect the direct
of regional presence, track record and tech- ally have a profit margin in the range of 5% material cost to go higher in future. Also, the
nical expertise. Only the top MEP service to 7%, depending on the economic conditions cost of direct labour will increase in the fu-
providers are currently providing training of the country and the type of projects they ture due to rising staff accommodation costs.
for their employees, either in-house or on- get involved in. Finally, net profit margins are likely to de-
site. Some are sending them to institutions cline further, placing added pressure on con-
to become qualified, and then reabsorbing You state that ‘contractors are continu- tractors going forward. All material prices
these employees. ously upgrading their services’. This im- related to construction are an important end
plies a new focus on quality, customer consideration in terms of profit margins.
What is the future outlook for smaller MEP service and value addition?
companies? Yes, in order to cope with the growing de- Technologies such as BIM are becoming
The smaller MEP companies with strong velopment of next generation/green build- more important?
technical capabilities and a local presence ings, huge iconic or sophisticated projects, BIM software currently does not play a ma-
are trying to establish themselves through island projects and multi-tenant/mixed-use jor role in the sustainability of MEP serv-
a tie-up (either JV or acquisition) with top developments, MEP contractors are upgrad- ices in the construction sector in the GCC,
companies (either MEP service providers or ing their services continuously by invest- as the construction industry still has a long
with developers with an in-house MEP divi- ing in in-house pre-fabrication, design and way to reach such a high level of technical
sion) having a presence in all six GCC coun- service capabilities. The increasing focus proficiency. It is dismaying to note that eve-
tries, or at least with companies having a on next-generation developments is mainly rything concerning MEP design has been
presence in the top three potential countries, due to the need to be cost-competitive due done manually in 2D to date, especially in a
so as to expand themselves regionally. to energy-efficiency and environmental sus- region like the UAE, where there are mas-
These smaller MEP companies will nor- tainability factors, and also to enhance the sive and incredible projects taking place.
mally end up doing a limited number of market dynamics. BIM software will allow MEP engineers to
projects either through sub-contracting or slash overall project costs, speed up the de-
self-performed. There is a chance that these What is the forecast in terms of material sign process and improve build quality by
companies will sometimes end up not do- and labour costs? reducing mistakes. The usage of BIM is not
ing any projects in a year; some might close Due to the rise in construction commodity under the scope of the study.

Turnkey Hot Water & Steam Systems

Electric Boiler Steam Solar


Hot water & steam systems Skid mounted units Specification support Leading-edge construction
Energy & space saving Hygienic hot water Compact design High-quality stainless steel

SHERATON HOTEL, HONG KONG BURJ TOWER, DUBAI GRAND HYATT HOTEL, DOHA SHORELINE APARTMENTS, DUBAI
_ 782 rooms, ballrooms & meeting spaces, _ Armani Hotel, residences, offices _ 249 rooms & 93 villas, 39000 litres/hour _ 6 buildings, each with 156 apartments,
restaurants & lounges, cafes & bars 71000 litres/hour hygienic hot water at 60 °C hygienic hot water at 60 °C 10000 litres/hour hygienic hot water at 60 °C
_ Electric hot water system 800 kW, 4x 2500 litres _ Gas condensing boilers & skid mounted _ Steam boilers, 3x 4000 kg/h, 11 bar _ 200 m² solar panel area, solar gain 80 %
_ Heat pumps, 4x 350 kW heat exchanger packages, 11x 300 kW _ Stainless steel high capacity water heaters, _ Gas condensing boilers for back-up heating 2x 80 kW
_Electric steam boilers, 2x 1800 kg/h, 10bar 6x 450 kW, 6600 litres/hour at 60 °C _ Stainless steel calorifiers, 3x 4000 litres

ECOTHERM Middle East Tel. +97144226944


P.O. Box 299350 Fax. +97144226943 www.ecotherm.com
Dubai - U.A.E info@ecotherm.com

www.constructionweekonline.com April 2010 | MEP Middle East 29


PIPES

In the pipeline

From water to wastewater and district cooling, piping plays a major role. We look at
some of the major players in this vital infrastructure sector.

ABU DHABI PIPE FACTORY BOROUGE provides a range of differentiated products for
The Abu Dhabi Pipe Factory LLC (ADPF) was Borouge is a leading provider of innovative high-value infrastructure applications, includ-
established in 1981 in technical collaboration plastics solutions. Established in 1998 as a joint ing water, gas and industrial pipe systems and
with Cord International of France. It is a leading venture between the Abu Dhabi National Oil power and communications cables.
manufacturer of glass-reinforced plastic (GRP) Company (ADNOC) and Borealis, a leading
pipes and fittings in the Gulf. It uses dual heli- European plastics provider, Borouge employs CORYS-HEPWORTH PME LLC
cal filament winding for core pipes from 25 mm Borstar technology for end-use plastics appli- Hepworth PME LLC is the Middle East’s pre-
to 2 000 mm, and continuous filament winding cations throughout the Middle East, the Asia- mier manufacturer and supplier of a range of
for jacket pipes from 250 mm to 3 200 mm. Pacific and Africa. high-quality plastic pipes, fittings and accesso-
The factory has a total area of 150 000 m², of Its petchem complex is located at Ruwais in ries used for the distribution and transmission
which the production area is 40 000 m² (Abu Abu Dhabi, with a multi-billion dollar expan- of water, wastewater and gas. Corys is the hold-
Dhabi and Dubai combined). The production sion due to commence production this year. ing company. Distributed in Dubai for over 35
capacity is 50 000 tons of pipes and fittings a This will effectively triple existing production years, all products are represented by a chain
year. It has a combined total of nine production capacity to two million tons a year, including of offices throughout the area. Hepworth prod-
lines for dual helical winding and four for con- – for the first time – polypropylene. Borouge ucts conform to the highest of international
tinuous winding. standards used in the region. Its substantial
ADPF pre-insulated GRP pipes are used stockholding ensures it is able to consistently
widely in piping networks for district cooling satisfy the requirements of the industry.

700
systems. A pre-insulated GRP pipe consists Hepworth PME offers a range of PVC-U
of a core pipe, also called a carrier pipe, and a pressure pipes and non-pressure pipes and fit-
jacket pipe, also called a casing pipe, with poly- tings, PVC and ABS fittings and PP, PP-R, ABS
urethane foam in the annular space between and PE pipes in imperial and metric sizes. Its
the pipes. Insulation provides the primary engineered fittings have been installed on sew-
thermal resistance against heat gain in chilled Failures a day in the US in ageing erage, water supply, irrigation, fire mains, soil
water systems. Normally two pipes are laid in and waste contracts throughout the Middle
parallel in the same trench to serve as a sepa-
water-distribution systems East. Grease traps, end caps, land drain slot-
rate supply and return. ted pipes, long radius bends for street lighting

30 MEP Middle East | April 2010 www.constructionweekonline.com


PIPES

bends, road gulleys, catch basins and sealed from operators to highly-skilled engineers.
dry manholes are just some of the fabricated ELIPS will use spray technology for manu-
products from Hepworth PME. facturing large-diameter pre-insulated pipes,
In March 2009, Hepworth PME entered into
a joint venture with George Fischer, a global
US$36 which will ensure high-quality products and
also result in savings in raw material costs as
corporation across 130 companies worldwide
with 50 production sites (80 companies are
based in Europe, 35 in Asia and the Middle
BILLION
The yearly cost of corrosion on the
compared to traditional injection technology.
This technology also enables the JV to enter
the oil and gas industry, which is not possible
East, 12 in America and two in Australia.) The water and sewerage system in the US with traditional injections. Currently, only one
company’s core competency is piping systems, out of five existing pre-insulated pipe manufac-
plastic and metal fittings, valves and shut-offs turers are using spray technology.
for water, gas and other liquids.
Another recent joint venture is with MDS DPF is part of the Amiantit group, a leading FUTURE PIPE INDUSTRIES
Meyer GmbH, a German specialist in the pro- manufacturer of pipe systems. The group’s The Future Pipe Industries group (FPI) is a
duction of rubber seals and gaskets. The new pipe systems division comprises almost 30 global leader in large-diameter fibreglass pipes,
company formed under this agreement, Corys wholly-owned, majority-owned or joint-venture developing, manufacturing and supplying sys-
MDS LLC, will produce a range of MDS brand- manufacturing facilities in 18 countries. Using tems in over 50 countries. Headquartered in
ed rubber gaskets in Dubai. This latest step in the latest technologies, pipes are produced in Dubai, it comprises ten factories and a global
the group’s growth will help reduce the high a wide variety of materials such as glass rein- network of sales offices across four continents,
costs of importation and the attendant delays in forced plastic (GRP), glass reinforced epoxy serving customers and end users in a variety
transportation. It will also help expand its cus- (GRE), thermoplastic (HDPE, PVC and PP), of sectors, including, oil and gas, infrastructure
tomer base worldwide. concrete, polymer concrete and ductile iron. and municipal, water distribution, desalination
Corys has manufacturing units in Rashidiya International brands include AmPlas, and power, petchem and industrial.
in Dubai, Dubai Investment Park and Qatar, as Amipol, Amipox, Flowtite, Meyer Polycrete, FPI was established in 1984 when Fouad
well as fabrication workshops in Sharjah and Speedmark, C-Tech, AmiGrip and Vectus. The Makhzoumi acquired a stake in Gulf Eternit
Abu Dhabi. A new unit is due to open in 2010 comprehensive range of Amiantit products in- Industries, the first company in the group. As
that will double the production capacity to ac- cludes pipes and accessories for water, sewage, a manufacturer of a comprehensive portfolio of
commodate expansion within the UAE and hydro-power, gas, oil services, construction, fibreglass pipe systems, FPI has successfully
other export markets. Corys employs over 800 engineering, municipal, industrial, agricultural promoted fibreglass as a substitute for pipe
staff across all its sites, and offers its customers and marine applications. systems based on traditional materials.
a range of more than 25 000 products. A fleet of Polyester and vinylester based fibreglass
over 50 vehicles permits site delivery within an ELIPS reinforced composites (GRP/GRV) offer excel-
efficient timeframe. The UAE’s largest pre-insulated pipe manu- lent performance in terms of corrosion resist-
Production is achieved with the use of Eu- facturing facility, Empower-Logstor Insulated ance and resistance to loads (buried installa-
ropean equipment of the highest quality from Pipes Systems (ELIPS), was launched officially tions) in high pressure and high temperature
suppliers such as KraussMeffai, Battenfeld, in Jebel Ali recently by HRH the Crown Prince applications. GRP pips have been used exten-
Weber and Engel, and raw material from sup- of Denmark Frederik Andre Henrik Christian sively in the desalination and power industries
pliers such as Borouge and Sabic. Hepworth and HH Sheikh Mansoor Bin Mohammed Bin (salt water systems, intake and discharge/
PME is an industry leader in installing and in- Rashid Al Maktoum. outfall, cooling water systems, flue gas desul-
tegrating the Oracle ERP (Enterprise Resource ELIPS is a joint venture (JV) between Emir- phurization and utility piping), water distribu-
Planning) system. This automated system al- ates Central Cooling Systems Corporation tion and municipal/infrastructure applications
lows supply chain excellence, real-time man- (Empower), a leading district cooling company (storm and surface drainage, sewer and district
agement and communication, and gives Corys in the UAE, and Logstor, the world’s largest cooling and heating.)
a major administrative advantage. manufacturer of pre-insulated pipes. The US$25
Recently recertified for ISO 9000, Hepworth million facility will cater to the requirements SAUDI PIPE SYSTEMS
PME has worked on iconic projects such as of the district cooling and oil and gas sectors Saudi Pipe Systems Company is based in Jed-
The Palm Jumeirah, Burj Khalifa, Burj Al Arab across the Middle East. dah in Saudi Arabia, and manufactures valves,
and Atlantis, and is one of only three approved ELIPS will ensure high quality of insulation cast iron and ductile iron fittings, GRP and
suppliers to Dubai Municipality. It is aiming for and casing of pipes, enhancing efficiency and HDPE pipes and pre-insulated pipes and fit-
ISO 14000 in environment management. maintenance costs of district cooling services. tings. PE100, considered the most heavy-duty
It will also ensure price control by improving among polyethylene pipes, is ideal for water
DUBAI PIPE FACTORY supply chain and eliminating artificial price and gas mains due to its maximum working
Established in 2001, the Dubai Pipe Factory fluctuations created by various players due to pressure. It has enhanced toughness, higher
Company LLC (DPF) is located on a 150 000 the demand-supply gap, added Bin Shafar. permissible design strength and improved
m² facility in the Jebel Ali Industrial Area, of Logstor has been serving the Gulf region resistance to crack propagation. High-density
which 5 000 m² comprise manufacturing and since 1992, and is now marking its commit- polyethylene pipes (HDPE) offer the water
testing facilities, in addition to storage areas ment to serve the region by establishing an engineer substantial benefits in performance.
for glass and resin and other consumables. It anchored presence with the ELIPS factory. De- PE100 pipes are used in various applications,
employs the continuous filament winding proc- pending on dimensions and output from 100 to including sewage pumping mains, fire mains
ess to manufacture a range of GRP pipes, tanks, 300 pipe joints a day, the factory will offer job and chilled water. Pipes are manufactured in
manholes, fittings and accessories. opportunities for a wide range of competences, diameters from 25 mm to 3 000 mm.

www.constructionweekonline.com April 2010 | MEP Middle East 31


ADVERTISEMENT

NAPCO Achieves
UL Certification
NAPCO, manufacturer of speciality adhesives, coatings and sealants, has announced
that it has achieved Certification by Underwriter Laboratories, Inc., (USA).
To have been awarded this prestigious certification is a the region’s leading manufacturer of HVAC adhesives,
landmark accomplishment for NAPCO. This is further coatings and sealants for over 15 years, with projects
rewarding by virtue of NAPCO being the first and only that span across the Middle East, Africa and Asia.
company in the region to have its complete range of
HVAC adhesives, coatings and sealants UL certified. In today’s world of increasing demand for quality and
safe products, NAPCO is working with its clients and
A UK-based company with a manufacturing unit in internationally reputed laboratories to not only to meet
the United Arab Emirates, NAPCO Middle East Ltd. is standards but to set them.

NAPCO Middle East Ltd. P.O. Box 23021 Sharjah, United Arab Emirates
Tel. +971 (0) 6 543 6322, Fax. +971 (0) 6 543 7647, Email:napco@eim.ae CERTIFICATE NUMBER 1364
BUSINESS LEADS

PROJECTS IN QATAR
MEP Middle East and Ventures Middle East have teamed up to provide you with essential project information.

OFFICE TOWERS, LUSAIL


MARINA
Client: Salam International/QDREIC
Consultant: M.Z. & Partners
Main contractor: Not Appointed
MEP contractor: Not appointed
Value: US$275 million
Status: Under Design
Type: Commercial Buildings
Contact: Salam Bounian Development Company, T: +974 493 25 24,
info@salam-bounian.com

Salam 4 comprises four office towers in the marina district of Lusail City.
Situated on four pieces of adjacent lands and yet connected internally, the
towers will enjoy views of the Doha Golf Club and the Lusail beaches.
Due to this prestigious location, the project is expected to attract many
international companies. It will comprise fully-equipped ‘smart’ com-
mercial offices with the latest commercial technology, facilities, conve-
niences and retail shops to create an optimal business environment. Salam 4 in Lusail City

Project Title Client Consultant Main Contractor MEP Value Project Type of
Contractor (US$. Mn) Status Project
Model School at Najma - School Public Works Authority In House Inshaa Contracting Not Appointed 11 project under Educational
No: 23 Company construction Facilities

Al Emadi Twin Towers Mr. Mohammed Esmail Al Emadi Arab Consulting Not Appointed Not Appointed 101 - 250 project under design Commercial
Engineers Buildings

Residential Building in Fox Hills Buzwair Real Estate/QDREIC Faim Design Not Appointed Not Appointed 2.5 - 15 project under design Residential
Buildings

Apartment Building at Al Sadd Mr. Nasser Abdul Aziz Nasser Consulting Engineering Not Appointed Not Appointed 16 - 30 award awaited for the Residential
Al Nasser Group main contract Buildings

Labour Accommodation at Public Works Authority Al Aqsa Consulting & Ramco Engineering Not Appointed 5 project under Residential
Wakrah - Phase 2 Engineers construction Buildings

Office/Residential Building Mr. Abdul Jaleel Abdul Ghani Consulting Engineering Not appointed Not Appointed 41 award awaited for the Mixed Use
at Najma Nasser Group main contract

Hotel & Office Buildings at Al Mr. Abdul Rahman Al Mufta South West Architecture Al Mufta Contracting Not Appointed 16 - 30 project under Mixed Use
Rayyan Road construction

Al Dar Hotel Mr. Mohammed Al Majed Al Jazeera Engineering Not Appointed Not Appointed 16 - 30 project under design Hotel
/ EGEC

The Regent Doha Ghanem Al Thani Holding KEO International Not Appointed Not Appointed 101 - 250 award awaited for the Hotel
main contract

Corporate Building for Energy Energy City Qatar ABS Not Appointed Not Appointed 101 - 250 award awaited for the Commercial
City Qatar main contract Buildings

4 Office Towers in Marina Salam International/QDREIC M.Z. & Partners Not Appointed Not Appointed 275 project under design Commercial
District of Lusail Buildings

Shopping Mall in Abu Nakhla Al Meera Consumer Goods Consulting Engineering Noors Engineering Not Appointed 12 project under Shopping Centre
area Company Group Company construction

Entertainment District - ADIH/Majid Al Futtaim/QDREIC RTKL/Forrec Not Appointed Not Appointed 1,500 project under design Mixed Use
Precinct A & B

Community College in Dukhan Qatar Petroleum Technital Qatar Not Appointed Not Appointed 16 - 30 project under design Educational
Facilities

For the latest Middle East MEP project information, visit

www.constructionweekonline.com April 2010 | MEP Middle East 33


METAL MONITOR

NON-FERROUS METAL PRICES


The London Metal Exchange (LME) is the world’s premier non-ferrous metals market. The LME offers futures and options contracts for aluminium,
copper, lead, nickel and NASAAC, among others. Many of these materials are indispensable in the MEP sector. The latest historical data from the LME is
presented to give readers insight into this dynamic trading market. For further information visit www.lme.co.uk.

FEBUARY 2010
THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE
Primary Aluminium Copper Lead Nickel NASAAC

$6825
Aluminium Alloy
(dollars) (dollars) (dollars) (dollars) (dollars) (dollars)
Cash Buyer 2,048.23 1,885.03 6,847.20 2,121.23 18,964.75 1,978.98
Cash Seller & Settlement 2,048.93 1,892.93 6,848.18 2,123.68 18,976.00 1,988.50
Copper 3-months seller
Cash Mean 2,048.58 1,888.98 6,847.69 2,122.45 18,970.38 1,983.74
3-months Buyer 2,079.10 1,913.00 6,870.30 2,139.93 19,034.00 2,008.25
3-months Seller 2,079.95 1,923.25 6,872.45 2,142.20 19,052.00 2,018.75
3-months Mean 2,079.53 1,918.13 6,871.38 2,141.06 19,043.00 2,013.50
15-months Buyer 2,172.20 2,019.75 6,876.50 2,140.45 18,983.00 2,112.25 LME AVERAGE SETTLEMENT
15-months Seller 2,177.20 2,029.75 6,886.50 2,145.45 19,083.00 2,122.25 PRICES IN EURO
15-months Mean 2,174.70 2,024.75 6,881.50 2,142.95 19,033.00 2,117.25 Metal Euro
27-months Buyer 2,246.80 2,102.25 6,810.25 2,107.45 18,701.00 2,185.25 Settlement
27-months Seller 2,251.80 2,112.25 6,820.25 2,112.45 18,801.00 2,195.25 Conversion Rate
27-months Mean 2,249.30 2,107.25 6,815.25 2,109.95 18,751.00 2,190.25
Primary Aluminium 1,497.12
Aluminium Alloy 1,383.15
THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS:
Settlement Conversion Copper 5,004.76
Copper Cash Seller & Settlement: £4,385.77 Exchange Rates Lead 1,552.13
Copper 3-months Seller: £4,539.08 Stg/$ 1.5621
Nickel 13,871.06
Lead Cash Seller & Settlement: £1,360.13 $/JY 90.23
Lead 3-months Seller: £1,372.84 Euro 1.3687 Nasaac 1,452.98

JANUARY 2010
THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE
Primary Aluminium Copper Lead Nickel NASAAC

$7165
Aluminium Alloy
(dollars) (dollars) (dollars) (dollars) (dollars) (dollars)
Cash Buyer 2,234.53 1,955.98 7,384.98 2,367.03 18,430.00 2,063.20
Cash Seller & Settlement 2,235.15 1,965.35 7,386.25 2,368.38 18,439.25 2,072.20
Copper 3-months seller
Cash Mean 2,234.84 1,960.66 7,385.61 2,367.70 18,434.63 2,067.70
3-months Buyer 2,265.95 1,985.25 7,409.68 2,390.28 18,477.50 2,095.00
3-months Seller 2,266.65 1,996.25 7,412.03 2,393.25 18,500.00 2,106.80
3-months Mean 2,266.30 1,990.75 7,410.85 2,391.76 18,488.75 2,100.90
15-months Buyer 2,359.95 2,095.75 7,403.25 2,398.75 18,524.75 2,202.50 LME AVERAGE SETTLEMENT
15-months Seller 2,364.95 2,105.75 7,413.25 2,403.75 18,624.75 2,212.50 PRICES IN EURO
15-months Mean 2,362.45 2,100.75 7,408.25 2,401.25 18,574.75 2,207.50 Metal Euro
27-months Buyer 2,428.75 2,178.25 7,342.00 2,385.05 18,429.50 2,273.75 Settlement
27-months Seller 2,433.75 2,188.25 7,352.00 2,390.05 18,529.50 2,283.75 Conversion Rate
27-months Mean 2,431.25 2,183.25 7,347.00 2,387.55 18,479.50 2,278.75
Primary Aluminium 1,565.37
Aluminium Alloy 1376.79
THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS:
Settlement Conversion Copper 5,173.20
Copper Cash Seller & Settlement: £4,569.57 Exchange Rates Lead 1657.98
Copper 3-months Seller: £4,588.35 Stg/$ 1.6165
Nickel 12,918.19
Lead Cash Seller & Settlement: £1,465.36 $/JY 91.30
Lead 3-months Seller: £1,481.67 Euro 1.4277 Nasaac 1,451.42

Neither the LME nor any of its directors, officers or employees shall, except in the case of fraud or wilful neglect, be under any liability whatsoever either in contract or in tort in respect of any act or omission (including negligence) in
relation to the preparation or publication of the data contained in the report.

www.constructionweekonline.com April 2010 | MEP Middle East 35


PRODUCTS

BOILER SAFETY
FEATURE
Sussman Electric boilers cater for
a range of applications, including
industrial steam and hot boilers,
HVAC, direct steam heating, hot water
for process and comfort heating,
humidification and air-water-oil
preheating and booster heating
applications. Its latest SSB stainless
steel model introduces a safety low
water cut-off level control.
Sussman’s boiler safety feature
showcases an electric steam boiler
with a float type that automatically
maintains proper water level for safe
operation and shuts off the boiler when
the water supply falls below a safe
level. An auxiliary low-water cut-off is
PRE-WIRED OFFICE FURNITURE supplied in addition to primary control
Cable-management specialist Marshall-Tufflex together with optional MCBs and RCD protection. as standard.
has launched a new range of pre-wired office The desk units comply with BS 6396 for Other features include a water-
furniture desk units as part of its underfloor to Electrical Systems in Office Furniture and with level sight glass, main on-off switch,
desk solutions range. BS 1363-2, where applicable. Colour-coding steam stop-valve and long-life heating
The units provide a neat, safe and stylish indicates red for 3.15A and yellow for 5A. elements, as well as industrial-
method of delivering power to desktop devices The desk units are also compatible with a grade, heavy-duty 0.42 inch diameter
such as computers and printers, replacing messy range of prefabricated wiring systems using stainless steel sheath heating elements
and potentially dangerous trailing power cables. standard 16A connectors and compact 32A with one-piece resistance-welded
Power can be delivered directly from Marshall- connectors. Units are supplied as standard in terminations for added life and
Tufflex’s MT32 plug-and-play 32A power black ABS and aluminium. However, aluminium security.
distribution system or via its Series 507 or any units required with a silver-grey anodised finish www.sussmanboilers.com
other powertrack system. are also available by contacting Marshall-
The system is fully segregated with Clean Tufflex’s technical team.
Earth (CE) and standard versions available, www.marshall-tufflex.com

UTILITY MANHOLE COVER LIFTER


General Machine Products Company Inc. of the cover to be removed. Insert the key into the
US has introduced a utility manhole cover lifter cover’s hole or lifting pocket.
to its range of safety tools and equipment. The Next, brace the lifter’s foot with one of your
lifter allows an individual to lift and remove own feet while having the handle pointing away
heavy utility manhole covers quickly and from you. Then pull the lifter’s handle backward
safely in a variety of work environments and toward you. Keep moving the foot of the lifter back
applications. to change the angle and allow for additional pulls
The tool securely attaches to and raises the of the handle to clear the manhole cover from its
most stubborn covers – with the lifter doing all frame.
the heavy work, instead of the technician’s back. Added design features include rubber hand grips
One lifter can work on a wide range of cover and a spiked foot for secure traction on unstable
types, as each lifting hook attachment (or key) is ground surfaces. In addition, the lifter’s durable,
designed to accommodate a broad selection of plated-steel tubular body is engineered specifically
manhole covers. to lift the heaviest utility manhole covers. stock keys can accommodate the majority
The long handle of the lifter provides the The company offers several key options, of utility cover types in use worldwide today,
precise leverage necessary to easily raise bulky including a small J-hook, a large J-hook and a the company wcan also engineer custom key
manhole covers. The lifting process is simple. heavy L-hook. All keys are made of heat-treated designs to fit unique applications.
First, select the appropriate lifting key for the steel for added strength and durability. While www.GMPtools.com

36 MEP Middle East | April 2010 www.constructionweekonline.com


We create the world’s best indoor
climate for people and the environment
We help our customers to save money by improving their energy saving potential SwegonSolutions TM

whilst conserving the environment. We achieve this by offering energy saving


systems with chilled beams and high efficient energy recovery.
Swegon is one of the leading manufacturers of equipment for air treatment
in Europe. However, our vision is to create the world’s best indoor climate for
people, with the least possible impact on the environment.
Swegon’s development of ventilation products focuses on four key objectives:
High energy efficiency and reduced carbon footprint
Maximum comfort
Low installation costs
Minimum space requirement

For further information, please contact:

Gunnar Svensson, Swegon Bassel Anbari, InterCool


Mobile: +971 50 919 7181 Mobile: +971 50 667 0527
E-mail: gunnar.svensson@swegon.ae E-mail: Bassel@intercool.ae

www.swegon.com
PRODUCTS

supports line sizes from 0.5 to 120 inches. It can be


installed virtually anywhere in a new district energy
piping system, or be easily retrofitted into an existing
piping layout.
McCrometer claims that, because the flow-
conditioning function is built-into the basic
instrument, the V-Cone flow meter’s design is
inherently more accurate than traditional DP
instruments such as orifice plates and venture tubes.
The V-Cone conditions fluid flow to provide a stable
flow profile that increases accuracy. It features a
centrally-located cone inside a tube.
The cone interacts with the fluid flow and reshapes
the velocity profile to create a lower pressure region
immediately downstream. The V-Cone features two
pressure-sensing taps to measure the pressure
The V-Cone steam flow meter from McCrometer difference that is exhibited between the static line
pressure and the low pressure created downstream
REDUCING PIPING INFRASTRUCTURE of the cone. One tap is placed slightly upstream of the
cone and the other is located in the downstream face
The V-Cone steam flow meter from McCrometer The company claims that the V-Cone is accurate to of the cone itself.
delivers accurate steam-flow measurement in a +0.5%, with a repeatability of +0.1%, and requires The pressure difference can then be incorporated
space-saving design ideal for district energy facilities. only 0-3 straight diameters upstream and 0-1 into a derivation of the Bernoulli equation to
According to McCrometer, the V-Cone diameters downstream from the meter. Many other determine the fluid flow rate. The velocity of the liquid
eliminates many of the common equipment lay-out types of flow meters require as many as 10 pipe flow at the point of measurement is optimised by the
problems associated with steam processes in straight diameters upstream and five pipe diameters central position of the cone in the line. It forms very
HVAC systems and electric power co-generation downstream from the meter. short vortices as the flow passes the cone. These
systems. It is designed for steam process lines With space constraints an increasing issue in short vortices create a low-amplitude, high-frequency
connecting boilers with HVAC systems or co- modern building, the V-Cone typically reduces real signal for good signal stability. The result is a highly
generation energy systems. estate, piping material, associated pipe support stable flow profile that is repeatable for continuously
At the same time, the self-conditioning flow structure and installation labour by 50% or more. accurate flow measurement.
design of the V-Cone eliminates most of the With the V-Cone, larger line sizes mean larger McCrometer is a leading global flow
straight-pipe requirements typically needed with savings. instrumentation specialist focusing on the design,
many flow meter technologies by controlling swirl The V-Cone flow meter features built in flow- manufacture, installation and testing of flow metering
and other flow disturbances in the pipe that affect conditioning and advanced differential pressure (DP) solutions. Its MENA office is located in Jebel Ali.
measurement accuracy. technologies. Operating over a wide flow range, it www.mccrometer.com

MULTI-FUNCTIONAL OVERHEAD SHOWER THREE-PHASE


HVAC COMPRESSOR
The Raindance Rainmaker AIR from Hansgrohe, technology, which draws in air to enrich the SOFT STARTERS
with its 680 mm shower head and flush- water, thus producing a voluminous rain
ceiling mounting, adds a new dimension to instead of the needle-like jets experienced in Carlo Gavazzi Automation has launched its
sanitaryware. Now a new rectangular option conventional showers. RSBT series, a three-phase soft-starting
has been launched to complement bathrooms www.hansgrohe.com solution that optimises current reduction for
designed along geometric lines. Its spray surface HVAC (scroll) compressors, mainly used in heat
accounts for almost the entire area of the 680 pumps. The RSBT series is equipped with a
mm by 460 mm ceiling element. patent-pending auto-adaptive algorithm that
The central part of the unit, with a diameter reduces energy consumption each time the
of about 240 mm, can also be used on its own. compressor starts by self-adjusting appropriate
When required, the two outer segments can be parameters.
added to the stream as well. The wide-spreading In this manner it limits current inrush up to
spray enhances its functionality, preventing 65%, compared to direct-on-line starting. The
contact with the cold outside air. RSBT series is compliant with Class B (resi-
Three downward-projecting conical whirl dential) requirements for emissions, does not
jets can be added to the stream as required need any external settings and is provided with
to provide a powerful and relaxing massage a compact housing (45 mm). It also provides
effect. This multi-functional overhead shower phase sequence and imbalance protection.
system again employs the innovative AirPower The Raindance Rainmaker AIR from Hansgrohe www.GavazziOnline.com

38 MEP Middle East | April 2010 www.constructionweekonline.com


THE LAST WORD

GREEN
PARAGON
Swegon business development director Carl
Tobisson talks about going green.

To what extent does the green per- ways. People will be more discern-
formance of a building influence the ing. Before, everybody could build
purchase decision? and sell. But now the market should
The launch of Sheikh Mohammed’s be more stable, as opposed to people
green building initiative at the end simply looking to build fast and sell.
of 2007 was the first step towards That’s why Sheikh Mohammed’s
changing the criteria so that people green proclamation was a big step.
pay more attention to energy-effi- Someone has to take the lead, or Swegon business development director Carl Tobisson
cient and green building solutions. practical steps will never be taken.
Such solutions are on their way to be- How important is indoor air quality? We are very much trying to meet
ing at the forefront of people’s minds. What health benefits are to be gained That is a good question. I think that, the needs of the builders.
There is a slow move away from from using Swegon in hotels? to a certain extent, say up until two
building fast, cheap and then selling. The first thing that comes to my mind years’ ago, the hotel industry has What is Paragon?
would be the silent cooling. When focused on the façade and exter- This is a new induction cooling unit
How should developers take an inter- most people stay in hotel rooms, they nal aesthetics, with cost-cutting for the hotel industry unveiled by
est in the lifespan of a building? can hear the fan coil unit (FCU) op- on things inside that people can- Swegon at The Big 5 last year. The
There must be some kind of educa- erating. And also there is the draught not really see. But now in the UAE product has just been launched in
tion. There are two types of inves- element that can keep people awake. and the region as a whole, people the UAE market. Swegon has al-
tors, namely owners and speculators. Those are two key areas that need to are looking at reducing the total ready secured a 300-room contract
Owners are going to pay the bills for be addressed. The other one would amount of energy consumed by for an airport hotel in Oslo. Unlike
energy, water and so on. The prob- be the risk of bacterial growth. their buildings. A total of 40% of a traditional FCU, Paragon has no
lem is with speculative buyers. When Our system operates above the energy is consumed by buildings. need for filters or drainage, so there
somebody else is paying the bills, it is dew point, whereas other systems This is because people acknow- is no risk of bacterial growth.
not so easy. We must remember that, operate below the dew point. This ledge that the well-being of people Another advantage is that Para-
if you have a LEED-certified build- means you need to have a tray under is of the utmost importance. gon is available as a standard mod-
ing, you can get more money out of the FCU, and you need to lead the ular unit, with all the necessary
it, which remains an advantage, even water away. As it is a wet system and What challenges are you facing? actuators and valves premounted.
for speculative investors. there is dust present in the room, you First of all, the economy needs to start This results in a significant overall
need to clean this unit carefully. Bac- picking up again. The biggest hurdle saving in installation costs. The
How have you encouraged clients to terial growth is one area where there would be that lots and lots of consul- small size of the unit, which is only
pay the premium for green building? is a definite higher risk. tants and property owners in this re- 180 mm high, means that the false
We are showing our customers that What our system does is, first of gion like to use traditional systems. ceiling space can be reduced dra-
you have to look at the long-term all, with the Gold handling unit, it has So in order to get your products into matically as well.
costs. You have the investment cost, filters that obviously filter and dehu- these new buildings, you have to be Paragon has other unique fea-
the running cost and the mainte- midify the air. So the system supplies patient. You need to be able to show tures: air distribution is parallel
nance cost. The running and main- primary air that is filtered. This is people the system already installed with the ceiling, which means it
tenance costs stay with the building not a problem if you require a normal in existing buildings. Above all, you can be placed at the rear of a room;
its entire lifespan. What we are try- supply of air. Also, you need to have have to be persistent. adjustable supply air grilles direct
ing to indicate is that you have to the right amount of air exchanged. the air vertically; an anti-draught
look at the pointers – not only at in- In addition, you have emissions Can you retrofit your products? function controls horizontal dif-
vestment, but the life-cycle cost. from carpets and walls, for example, We have not looked very much at fusion or air direction; and the
and this is dealt with by the extract that, but obviously this is an oppor- enclosed unit means that the recir-
Has the construction industry lost the air and ventilation. We would never tunity as well. The Paragon pro- culated air never comes into con-
will to go green in the face of the eco- recommend switching a system off duct is very new, and is part of our tact with the space above the false
nomic climate? completely and not having exchange aim to target not only new develop- ceiling, further enhancing indoor
The recession could help in some of air in the room. ments, but existing ones as well. air quality.

40 MEP Middle East | April 2010 www.constructionweekonline.com


Delivering MEP construction excellence
Providing MEP specialist construction to the building industry since 1976

Al Habtoor – Specon LLC has We have successfully delivered MEP


successfully delivered a number of multi-disciplined projects for both the
prestigious projects throughout the public and private sector, including
UAE and Qatar. hotels, airports, hospitals, sports
facilities and residential towers.
Our team of highly qualified engineers
and key management personnel bring We pride ourselves in providing clients
vast knowledge and experience in MEP with timely execution, high quality,
Construction, Design, Supervision, competitiveness and excellent
Service and Maintenance. after-completion service.

P.O. Box 87134 P.O. Box 26923 97 El. Venizelou Ave.


Dubai, UAE Abu Dhabi, UAE P.O. Box 139
Tel: +971 4 294 0420 Tel: +971 2 626 2036 17123 Athens, Greece
Fax: +971 4 295 3856 Fax: +971 2 626 3073 Tel: +30 210 931 1440
Fax: +30 210 931 1441
AL HABTOOR - SPECON LLC P.O. Box 22478
Doha, Qatar
36D Grivas Digenis Ave.
1066 Nicosia,Cyprus
Tel: +974 413 0044 Tel: +357 22 66 2775
MEP Specialist Construction Fax: +974 413 0055 Fax: +357 22 66 2871

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