Invest in an innovative technology to convert a widely available plant waste material into wood products at very competitive cost as compared to importsThe Business
The Company plans to establish a greenfield plant in the UAE that will use an innovative manufacturing technology to produce about 75,000 cubic meters of board products per year from the palm waste that is widely available in the region. One of the principals of the Company developed this technology, which produces wood board products that are competitive with the marine and commercial plywood and particle board that are currently imported. These palm waste based materials perform with equal or better specifications (tensile strength, bending strength and water absorption) than the products they replace. Such innovative products have not previously been produced from palm waste, which is currently burned or sent to landfill sites.
The three principals of the Company have extensive experience in the construction, board manufacturing and investment industries: one is the owner of a leading construction company in the region, the second has been involved in developing technology for and building more than 600 board manufacturing plants worldwide, and the third has had a successful investment banking career.
Market
The market in the UAE alone consumed about 1 million cubic meters of imported board in 2010. There are significant opportunities to expand the business into surrounding markets.
The Company is seeking to raise approximately AED 31 million ($8.5 million) of equity funding from an institutional private equity investor. An additional AED 30 million ($8.2 million) of equity has indicatively been raised from local family offices and UHNWIs, and advanced discussions about debt financing with banks have taken place.
Sector: Construction MaterialsSegment: Wood Panel ProductsRegion: AsiaFinancing Size: $5m to $20mContact: Javier Cervino
Company: Isthmus PartnersTelephone: +971 50 758 6599Email: [email protected]