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The Dutch Challenge Presented by Mounib Hatab Country Head UAE for Gulf Eternit Industries and Future Pipe Industries
FPI at a Glance • Established in 1984, headquartered in Dubai • Global leader in the fiberglass pipe industry • Eight manufacturing locations and a global network of sales offices • Serving more than 300 customers in over 50 countries in the Water Distribution, Industrial, Municipal & Infrastructure, Desalination & Power, Oil & Gas, Petrochemical and Marine sectors • 3500+ employees
The Dutch Connection • Gulf Eternit Industries / Future Pipe Industries - a Dubai based company serving the Municipal Markets • Wavin Repox BV – A subsidiary of Wavin BV which was owned by the Water Authority and Shell, serving the Industrial / Oil & Gas Markets • FPI already licensed the GRE technology from Wavin Repox BV • FPI acquired the Wavin Repox BV from Wavin BV in 1996
Why Holland? • We were licensing the know-how from Wavin Repox so when the company was put up for sale this was a good opportunity to acquire the technology, • The technology complemented our existing product offering in the GCC • This also gave FPI a foothold in Europe to further expand its reach into the industrial /oil & gas sectors. • The Netherlands also has an attractive climate for multinationals to base their holding structures in
FPI BV Hardenberg • The plant has approx 200 employees, many of whom have been with the company for many years • The factory is a niche player in the GRE market. • The factory focuses on the production of specialized items such as our Fiberfloat and Fibermar products • Principle market in EU with emphasis on Benelux • Serves as base for sales & marketing in Europe
The Challenges • Leadership styles: difference in leadership styles - Entrepreneurial vs more process driven decision making • Market difference: growth focus in the GCC vs replacement oriented market in Europe • Operating model: higher operating and fixed cost as well as higher efficiency vs lower labor costs in the GCC
The Synergies • Technology / product development center split between Holland and Dubai – best of both worlds • Focus on manufacturing of specialized items in Holland and commodity items in the GCC. Rationalizing our internal supply chain • Products and market sectors served are highly complementary • Created dialogue between the units to instill trust and share best practice within the Group as a whole