MEP Middle East - April 2010 by ITP Business Publishing

MIDDLE EAST

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

MARKET ANALYSIS THE LATEST RESEARCH INSIGHTS INTO THE MEP MARKET IN THE GCC

GROWTH PATH Al Habtoor-Specon or-Specon reveals the secrets behind ehind its phenomenal growth, despite d it th the ddownturn t

ALSO: EMANUELE STANO FROM ARISTON ON THERMO ON WATER HEATING

www.progman.ﬁ

Apply D for MagiCA n at trial versio progman.ﬁ now!

MagiCAD covers it all in MEP and BIM design • Ventilation • Heating & Piping • Sprinkler Designer • Electrical • Circuit Designer • Comfort & Energy • Room

Are you still a 2D designer? MagiCAD resellers GCC Timo Nurminen timo.nurminen@ progman.ﬁ Tel: +971 55 990 4532 Boutique Ofﬁce # 7 P.O. Box 73030 Dubai, UAE Oman Rrajesh Malaviya rrajesh@powerinfotech.net P.O. Box 1243, Jibroo 114 Sultanate of Oman Tel: +968-24811204 +968-24812875 GSM: +968-99418481

Buildings and installations are in 3D. Your competitors are working in 3D. Contractors require 3D. So sticking with 2D is a sure way to get left behind. Don’t let it happen to you. Contact your nearest MagiCAD reseller and make a move into the real world. It won’t be a day too soon.

The professional’s choice for Building Services

APRIL 2010 VOLUME 5 ISSUE 4

CONTENTS 16

23 03 CONSTRUCTION WEEK ONLINE

18 LEGAL

05 COMMENT

20 GENSETS

06 UPDATE 14 THE BIG INTERVIEW Al Habtoor-Specon MD Thrasos Thrasyvoulou.

A round-up of major suppliers and players.

latest research report on the MEP sector in the GCC.

30 PIPES A round-up of major suppliers and players.

23 CABLES Dow Wire & Cable global marketing director Jon Penrice on infrastructural growth.

33 BUSINESS LEADS 35 METAL MONITOR

16 PROFILE Ariston Thermo Middle East marketing manager Emanuele Stano on the latest technology.

www.constructionweekonline.com

26 MARKET ANALYSIS Senior research analyst Vivek Vijayakumar on Frost & Sullivanâ&#x20AC;&#x2122;s

36 PRODUCTS 40 THE LAST WORD

April 2010 | MEP Middle East 1

You could talk for hours about our experience in commercial and industrial boiler technology. Or you could just incorporate it. Viessmann displays greatness: with a comprehensive range of futureproof boiler and steam boiler technologies for industry and commerce. Steam boiler efficiency up to 95% and long service life ensure the highest degree of economy. Not to mention specific design for individual system solutions that can be optimally matched to your customers' requirements. Finally, true greatness is also always present in the details: www.viessmann.com

Individual solutions with efficient systems for all fuel types and applications.

Viessmann Vitomax 200 HS steam boiler with integrated economiser

Domestic boilers, DHW cylinders and calorifiers

Wall mounted boilers

Solar collectors

Heat Pumps

Commercial boilers

Viessmann Middle East FZE SAIF Zone PO Box 120841, Sharjah UAE phone +971-6-557 87 56 路 fax +971-6-557 87 65 e-mail: info-me@viessmann.com

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 HOLISTIC ENERGY MANAGEMENT Brett Annesley, Guest Columnist

• Middle East faces chronic water shortage

SAFETY TALLY

• On World Water Day, DuPont trumpets its

Selina Denman, Editor, Commercial Interior Design

• British plug set for design revamp

Energy-management approaches to lighting control and design may provide the key to reducing energy consumption within the commercial sector.

Clichés express an unavoidable, resounding truth. The much-abused ‘safety in numbers’ is a case in point.

BACKTRACK

MARKET GAP

Greg Whitaker, Editor, PMV Middle East

Stuart Matthews, Senior Group Editor

The Emirates Motor Museum in Abu Dhabi has a selection of customised Dodge Power Wagons. However, while we have dunebashing as a sport, Monster Truck racing hasn’t taken off here as it has in the US.

A good plumber is harder to fi nd than an odourless camel, which can only mean there’s a gap in the market. Who will be the fi rst to fill it?

water-saving technologies • Marshall-Tufﬂex appoints new technical manager for the Gulf

SPOT POLL

What’s your biggest headache right now?

41.4% Finding new work

34.5% Getting the money we’re owed

24.1% Unhappy workers

0.0% Materials procurement

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

April 2010 | MEP Middle East 3

COMMENT MIDDLE EAST

Registered at Dubai Media City PO Box 500024, Dubai, UAE Tel: 00 971 4 210 8000 Fax: 00 971 4 210 8080 Web: www.itp.com Offices in Dubai & London ITP BUSINESS PUBLISHING CEO Walid Akawi Managing Director Neil Davies Deputy Managing Director Matthew Southwell Editorial Director David Ingham VP Sales Wayne Lowery Publishing Director Jason Bowman EDITORIAL Senior Group Editor Stuart Matthews Tel: +971 4 435 6293 email: stuart.matthews@itp.com Editor Gerhard Hope Tel: +971 4 435 6252 email: gerhard.hope@itp.com ADVERTISING Publishing Director Jason Bowman Tel: +971 4 210 8351 email: jason.bowman@itp.com Business Development Manager Atif Majid Tel: +971 4 210 8155 email: atif.majid@itp.com STUDIO Group Art Editor Dan Prescott Designer Angela Ravi PHOTOGRAPHY Director of Photography Sevag Davidian Chief Photographer Khatuna Khutsishvili Senior Photographers G-nie Arambulo, Efraim Evidor, Thanos Lazopoulos Staff Photographers Isidora Bojovic, George Dipin, Lyubov Galushko, Jovana Obradovic, Ruel Pableo, Rajesh Raghav PRODUCTION & DISTRIBUTION Group Production Manager Kyle Smith Deputy Production Manager Kyle Smith Production Coordinator Devaprakash V A Managing Picture Editor Patrick Littlejohn Image Retoucher Emmalyn Robles Distribution Manager Karima Ashwell Distribution Executive Nada Al Alami CIRCULATION Head of Circulation & Database Gaurav Gulati MARKETING Head of Marketing Daniel Fewtrell ITP DIGITAL Director Peter Conmy ITP GROUP Chairman Andrew Neil Managing Director Robert Serafin Finance Director Toby Jay Spencer-Davies Board of Directors K.M. Jamieson, Mike Bayman, Walid Akawi, Neil Davies, Rob Corder, Mary Serafin

Tapping into water conservation

he planet marked World Water Day on 22 March. According to the United Nations Development Programme, more than a billion people, or about one in six worldwide, do not have safe drinking water. More than two billion lack access to adequate sanitation. If current water-usage trends continue, two-thirds of the world’s population will not have enough clean water by 2025. The international observance of World Water Day is an initiative that grew out of the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro. The Water for Life Decade 2005-2015 will give a high proﬁle to implementing water-related programmes. The ﬁrst water decade, from 1981 to 1990, brought water to over a billion people and sanitation to almost 77 million. But obviously there is still a lot to do. According to the Institute for Advanced Strategic & Political Studies (IASPS), water resources in the Middle East are plummeting. While representing 5% of the total world population, the Middle East and North Africa (MENA) region contains only 0.9% of global water resources. The number of water-scarce countries in the MENA region rose from three in 1955 (Bahrain, Jordan and Kuwait) to 11 by 1990 (with the inclusion of Algeria, Israel and the Occupied Territories, Qatar, Saudi Arabia, Somalia, Tunisia, the UAE and Yemen). Another seven are anticipated to join the list by 2025 (Egypt, Ethiopia, Iran, Libya, Morocco, Oman and Syria). In commemoration of World Water Day 2010, Al Majal Environmental & Technical Services, a 100% Omani environmental company, launched its ‘One Million Taps’ programme under its Oman Water Mandate (OWM) campaign to address the water challenges of the country, which reportedly obtains

40% of its demand for drinking from bottled water. The ‘One Million Taps’ programme aims to educate the public and encourage the widespread use of water-saving devices, from taps to shower heads, for example. Interestingly, the campaign is being promoted as a ‘national duty’. While the government aims to provide a safe and adequate water supply, it is the duty of every citizen to conserve water, reduce wastage and adopt measures to maximise water use, according to Al Majal. In addition, companies have a corporate social responsibility to conserve water as part of reducing their overall environmental impact. Water conservation reduces a company’s risk, and is in line with consumer preferences, as well as maintaining overall efficiency in the supply chain. With regard to the latter, the Al Majal scheme is designed to provide a total saving of up to 30% to 50%. At the end of the day, there is no hi-tech solution to water scarcity. As the ‘One Million Taps’ programme shows, what is needed, first and foremost, are a few fittings and a lot of common sense. GERHARD HOPE Editor gerhard.hope@itp.com

Circulation Customer Service Tel: +971 4 210 8000 Subscribe online at www.itp.com/subscriptions Certain images in this issue are availiable for purchase. Please contact itpimages@itp.com for further details or visit www.itpimages.com Printed by Atlas Printing Press L.L.C. Dubai The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication which is provided for general use and may not be appropriate for the reader’s particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.

Audited by: BPA Worldwide. Average Qualified Circulation 6,083 (July - Dec 2009)

ON THIS MONTH’S COVER Thrasos Thrasyvoulou from turnkey MEP contractor Al HabtoorSpecon, talking about the company’s strong growth trajectory since 2007.

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.

www.constructionweekonline.com

Keep up-to-date with all MEP Middle East news at

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 TechnoPark in Jebel Ali. The ﬁ rst phase of the new facility, sprawling over 22 000 m², will create 300 jobs and has a capacity to produce 30 000 switchboard panels a year. Work on the second phase is being planned, with a new extension for MV panels and a new product line. “Our expansion to new premises in TechnoPark follows extensive 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, developed with the support of Emaar Industries & Investments (EII), will help us achieve our goal. “With a seven-fold increase in production capacity, the plant will help us meet our customer requirements by providing high-quality, reliable and cost-effective products,” said Dynergy Technologies board member Mahnad Kashani. Dynergy Technologies focuses on facilitating energy solutions for local communities, hotels and construction projects. It is a subsidiary of EII, a member of Emaar Properties PJSC. EII, as a facilitator of the industrial and manufacturing sector, supports Dynergy in business development, marketing,

AED1.5 BILLION The market for LV panels

6 MEP Middle East | April 2010

Emaar Properties chairman Mohamed Alabbar, EII CEO Mohammed Saeed Al Raqbani and other executives at the Dynergy opening

establishing banking relations and implementing strong corporate governance measures. EII also secured a partnership with ABB Industries for Dynergy products, thus bringing in advanced power and automation technology to the company.

of its economies, institutional reforms and market liberalisation, which all create opportunities for large-scale transactions.”

Al Raqbani said the expansion of Dynergy Technologies to a new manufacturing facility in TechnoPark “will further em-

KEY DRIVER “The industrial and manufacturing sector is fast evolving as a key growth driver of Dubai’s economy, with small and medium enterprises accounting for up to 98.5% of Dubai’s business sector and 61% of the total workforce. EII complements the diversiﬁcation efforts of the Dubai government by providing tangible and strategic support to industries in achieving their larger growth goals,” said EII CEO Mohammed Saeed Al Raqbani. “The region presents an attractive opportunity for private investments in the manufacturing sector due to the planned growth

EII has secured a partnership with ABB Industries for Dynergy products www.constructionweekonline.com

UPDATE Dynergy aims at tapping this growing market. We target a turnover of AED200 – Mahnad Kashani million by 2012.“ power the company to enhance its production capacity, and also seek new geographic markets. EII’s continued support will further empower Dynergy to drive growth, create new job opportunities and expand its product range.” Providing turnkey solutions in LV and MV switchgear, Dynergy was previously operating out of small rented premises with a production capacity of only 4 000 panels a year. TechnoPark was selected as an ideal base for its own premises following an in-depth survey on various zone options in the Emirate.

CAPACITY EXPANSION “The capacity expansion and economies of scale that the new plant brings will create a competitive advantage for Dynergy. The new plant will also assist us in further emphasising research and development supported by adequate technical expertise,” said Kashani. With all products type-tested as per the speciﬁ cations of an independent quality certiﬁ cation authority in the UK as well

as IEC, Dynergy expects the new facility to drive its expansion into new markets in the GCC region. The company adheres to clean, reliable and safe manufacturing practices as part of its commitment to sustainable development. The new plant also has several energy-effi cient practices in operation, with production taking place under a sunlit semi-glassed roof, and using pneumatic tools system to save electricity consumption. Dynergy is a member of the Emirates Green Building Council, and currently runs a third-party assessment for greenhouse gas emission as the fi rst step to becoming a carbonneutral entity. Dynergy offers complete power distribution solutions for 400 V. It will also be providing solutions to cater for up to 22 kV three-phase power. The product range includes LV main distribution boards, MV distribution boards, sub-main distribution boards, fi nal distribution boards, capacitor banks and motor control centres, among many others.

Independent Technical Solutions LLC P. O. Box: 62447 Dubai Tel: +971 (0)4 2679885 Fax: +971 (0)4 2679886 Email: sales@intechsolutions.ae

Industrial quality Pressure Independent Flow Control Valves. · · Car Park Induction & Jet Fan · Ventilation Maximize your Delta T and minimize energy use with Flow Control System. DeltaPValves. · Tunnel Ventilation System. The&only Valve that GUARANTEE · · CO Smoke Detection System. Delta T performance · High technology that translates to high Delta T and efficiency gains. Website: www.hcgroep.com · Other benefits includes 5 – Year Warranty, 3 Pressure / Temperature Ports, Lifetime Serviceability, Guaranteed DeltaT, Flow Predictable To + / - 5% Website: www.flowcontrol.com · High Efficiency Capture Jet Hood · Ultra Violet Kitchen Filtration System · Automatic Water Wash Hood System · Ventilated Ceiling · Service Distribution Unit Car ParkUnit Induction & Jet Fan ·· Ecology Ventilation System. Hood Control · MARVEL Intelligent · System Tunnel Ventilation System. · CO & Smoke Detection System. Website: www.halton.com Website: www.hcgroep.com

· Mist Eliminator · Low Displacement Ventilation Equipment · Grills & Diffusers · Chilled Beams · Oil & Gas Dampers · Blast Valves · Cabin Ventilation Unit

· ·· · ·· ·· ·· · ·

Industrial quality Pressure Independent Flow Control Valves. Maximize your Delta T and use with Flow Control High Efficiency Capture Jetminimize Hood energy · Mist Eliminator Ultra Violet Kitchen Filtration System · Low Displacement DeltaPValves. Automatic Water Wash Hood System Equipment The only Valve that GUARANTEE Delta T Ventilation performance Ventilated Ceilingthat translates to high Delta · GrillsT & Diffusers High technology and efficiency gains. Service Distribution Unit5 – Year Warranty, · Chilled Beams Other benefits includes 3 Pressure / Temperature Ecology Unit Serviceability, Guaranteed · Oil & Gas Dampers Ports, Lifetime DeltaT, Flow Predictable MARVEL Intelligent Hood Control · Blast Valves To + / - 5% System · Cabin Ventilation Unit Website: www.flowcontrol.com Website: www.halton.com

Flow Meters BTU Measurement Systems CHW · HW · CW · DW · Steam ONICON offers a variety of ﬂow technologies BTU and ﬂow management needs, to meet your y backed by our legendary customer service. all backe Contact ONICON today to learn how accurate a factory calibrated energy and affordable affor measure measurement system can be. · · · · ·

BTU Meters Inline Magmeters Insertion Magmeters Insertion Turbine Flow Meters Vortex Steam Meters · Highly Accurate · Cost Effective · Individually wet-calibrated to your application

Website: www.onicon.com

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 has won a US$144 million turnkey order from the Abu Dhabi Transmission & Despatch Company (TR ANSCO) for a major expansion of a water transmission system in Abu Dhabi to help meet the Emirate’s rising demand for drinking water. The project will increase the volume of water supplied by the Shuweihat Power and Desalination Plant to the City of Abu Dhabi by increasing the capacity of two pumping stations. The project is scheduled for completion in 2011. The order was booked in the fourth quarter of 2009. ABB will be responsible for the engineering, installation, testing, commissioning and overall management of the project, and will provide a turnkey mechanical, electrical and automation solution for the extension and modiﬁcation of the Shuweihat and Mirfa pumping stations.

“ABB’s integrated power and automation technologies will help to provide a reliable and efﬁcient water supply to meet growing demand for water and support sustainable development in the region,” said Peter Leupp, head of ABB’s Power Systems division. The products supplied will include pumps, with related surge vessels and piping, energy-efﬁ cient drives and motors, as well as the required extension of the electrical balance of plant. The automation systems to manage the operation and monitoring of the water pipeline will use ABB’s state-of-the-art System 800xA control platform. TR ANSCO is a subsidiary of the Abu Dhabi Water & Electricity Authority (ADWEA), which is responsible for developing the high-voltage power and bulk water transmission network in the Emirate of Abu Dhabi.

ABB will help to provide a reliable and efﬁcient water supply to meet growing demand for water and support sustainable – Peter Leupp development in the region.“

Marina development in Abu Dhabi remains buoyant MARINE WORKS

Water-infrastructure specialist Septech is seeking to boost its Abu Dhabi-based Marine business following its presence at the 2010 Abu Dhabi Yacht Show. “Globally marina development has suffered enormously from the economic downturn, but in contrast we are seeing a marked growth in demand from the Emirate of Abu Dhabi,” said Septech marine business unit manager Bruce Birtwistle. “We estimate that the drop in global demand has reduced revenues by 20%; we are fortunate to be operating in one of the few markets still showing forward progress on marine development.” The 2010 Abu Dhabi Yacht Show was hosted 8 MEP Middle East | April 2010

The 2010 Abu Dhabi Yacht Show was hosted on the Septech-constructed Yas Marina

on the Septech-constructed Yas Marina. Recent project wins in Oman for other businesses in the Sep-

tech portfolio have opened the door for the marine unit to focus on Muscat, and new projects are increasingly cropping up in the

Kingdom of Saudi Arabia and Qatar, added Birtwistle. “We are very realistic in our outlook. Whilst the pace of marina development has certainly slowed with the contraction of the regional property development market, we nonetheless feel conﬁ dent our business position and our exclusive partnerships leave us well-placed to succeed in the current market, especially as developers become more discerning in their choice of suppliers,” said Birtwistle. In addition to the Yas Marina, completed prior to the Abu Dhabi Grand Prix, Septech is currently constructing two marinas in Dubai and a variety of ﬁ shing harbours in Oman. www.constructionweekonline.com

UPDATE

DSWP wins Khalifa A utilities works Now responsible for all infrastructure, following earlier district-cooling contract CONTRACT

Drake & Scull Water and Power (DSWP) has clinched a contract for the complete utilities development works at the Khalifa A City residential compound in Abu Dhabi. This follows an earlier AED118 million contract for a 20 000 TR chiller plant and two thermal storage tanks. The value of the latest contract is not known. DSWP, a subsidiary of Drake & Scull International PJSC (DSI), is now overseeing all relevant infrastructure works, including sewer lines, irrigation, telecom services, ďŹ re-ďŹ ghting, substations and related civils such as roads and paving. â&#x20AC;&#x153;One of the motivating factors for us in deciding to form a business stream dedicated to

managing and controlling infrastructure, water and power works was the surety we would continuously have a demand in the market to cater to. This has indeed been the case till now due to the non-diminishing demand for water and power, which are the basic elements needed in any community,â&#x20AC;? said DSWP executive director TawďŹ q Abu Soud. â&#x20AC;&#x153;This contract win marks the eighth for DSI in 2010, bringing the total value of projects awarded to date to AED1 billion,â&#x20AC;? said DSI CEO and vice-chairman Khaldoun Tabari. In related news, DSI reported net proďŹ ts of AED333 million for the ďŹ scal year starting 17 November 2008, the date the company was incorporated as a public joint stock company, and

ending 31 December 2009. It recorded AED2.2 billion in revenue for the same period. The results showed an annual proďŹ t of AED280 million for the calendar year starting 1 January 2009 and ending 31 December 2009, a year-on-year proďŹ t increase of 32%, up from AED212 million in 2008. Annual revenue totalled AED1.89 billion, up from AED1.72 billion in 2008, a yearon-year increase of 10%. â&#x20AC;&#x153;DSI had a positive year. Given that 2009 was challenging, this was an extraordinary end to the year. Our performance in 2009 ratiďŹ ed the strength of our management team, the resilience of our business model and the innovation of our integration engineering. As 2010 proceeds, we remain optimistic as we continue

Khaldoun Tabari

to invest in our growth strategy and engineering capabilities for the beneďŹ t of our employees, clients and shareholders,â&#x20AC;? said Tabari. â&#x20AC;&#x153;The company performed in line with our expectations and strategic priorities.â&#x20AC;?

d K d > ^ K > h d / K E & K Z z K h Z , K d Î&#x2DC; K > t d Z E ^ ^K> , Zd Í´ ^Ĺ˝ĹŻÄ&#x201A;Ć&#x152; tÄ&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152; ,Ä&#x17E;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152;Ć?

ZÄ&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161;Ĺ?Ä&#x201A;ĹŻ ^Ĺ˝ĹŻÄ&#x201A;Ć&#x152; ,Ä&#x17E;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152;Ć?Í&#x2022; WĹ&#x161;ĆľĹŹÄ&#x17E;Ć&#x161;

Ĺ˝ĹľĹľÄ&#x17E;Ć&#x152;Ä?Ĺ?Ä&#x201A;ĹŻ ^Ĺ˝ĹŻÄ&#x201A;Ć&#x152; ,Ä&#x17E;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152;Ć?Í&#x2022; YĹ?ĹśĹ?Ä&#x161;Ä&#x201A;Ĺ˝ ^Ć&#x2030;Ĺ˝Ć&#x152;Ć&#x161;Ć? ^Ä?Ĺ&#x161;Ĺ˝Ĺ˝ĹŻ / / > / ^Ć&#x161;Ä&#x17E;Ä&#x201A;Ĺľ Ĺ˝Ĺ?ĹŻÄ&#x17E;Ć&#x152;Ć?Í&#x2022; > > d /Zz KÍ&#x2DC; Í&#x2022; ĆľĆ&#x152;Ĺ˝Ć&#x2030;Ä&#x17E;

ZÄ&#x17E;Ć?Ĺ?Ä&#x161;Ä&#x17E;ĹśĆ&#x161;Ĺ?Ä&#x201A;ĹŻ Î&#x2DC; Ĺ˝ĹľĹľÄ&#x17E;Ć&#x152;Ä?Ĺ?Ä&#x201A;ĹŻ ^Ĺ˝ĹŻÄ&#x201A;Ć&#x152; tÄ&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152; ,Ä&#x17E;Ä&#x201A;Ć&#x161;Ä&#x17E;Ć&#x152;Ć?

WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝Í˛Í˛sĹ˝ĹŻĆ&#x161;Ä&#x201A;Ĺ?Ä? ^Ç&#x2021;Ć?Ć&#x161;Ä&#x17E;ĹľĆ? WĹ&#x161;Ĺ˝Ć&#x161;Ĺ˝

,Ĺ?Ĺ?Ĺ&#x161; Ä&#x201A;Ć&#x2030;Ä&#x201A;Ä?Ĺ?Ć&#x161;Ç&#x2021; Ĺ˝Ĺ?ĹŻÄ&#x17E;Ć&#x152;Ć? Î&#x2DC; ^Ć&#x161;Ä&#x17E;Ä&#x201A;Ĺľ 'Ä&#x17E;ĹśÄ&#x17E;Ć&#x152;Ä&#x201A;Ć&#x161;Ĺ˝Ć&#x152;Ć?

WĆ&#x152;Ä&#x17E;ĹľĹ?ĆľĹľ ,Ä&#x17E;Ä&#x201A;Ć&#x161; dĆ&#x152;Ä&#x201A;ĹśĆ?Ä¨Ä&#x17E;Ć&#x152; ^Ĺ˝ĹŻĆľĆ&#x161;Ĺ?Ĺ˝ĹśĆ?

,Ĺ?Ĺ?Ĺ&#x161; Ä&#x201A;Ć&#x2030;Ä&#x201A;Ä?Ĺ?Ć&#x161;Ç&#x2021; ,Ä&#x17E;Ä&#x201A;Ć&#x161; WĆľĹľĆ&#x2030;Ć?

^Ç Ĺ?ĹľĹľĹ?ĹśĹ? WĹ˝Ĺ˝ĹŻ ,Ä&#x17E;Ä&#x201A;Ć&#x161; WĆľĹľĆ&#x2030;Ć?

7HO 'XEDL 8QLWHG $UDE (PLUDWHV HFRYDO#HLP DH ZZZ HFRYDOPH FRP 6KRZURRP 1R 0LVWHU %DNHUV %XLOGLQJ 2SS 10& 6SHFLDOW\ +RVSLWDO $O 1DKGD

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

Cable management specialist Marshall-Tufflex has strengthened its presence in the Gulf by appointing Svetislav (Bata) Bulajic to the newly-created position of international technical sales manager. Dubai-based Bulajic brings with him a strong technical background, which Marshall-Tufflex is keen to exploit fully for the benefit of customers throughout the UAE, Qatar, Saudi Arabia, Iran, Kuwait, Bahrain, Oman, Iraq and Yemen. One of Bulajic’s key areas of expertise is underfloor power distribution, having previously worked for EKA Building Systems in Dubai on a number of high-profi le construction projects, including successfully in-

troducing Electrak systems to the GCC region. His appointment reinforces Marshall-Tufﬂex’s commitment to supporting its international customers and helping them make the most of its recent technological advances in cable management and prefabricated wiring systems. As international sales director Tracy Masters explained: “We know our Gulf customers are keen to adopt our latest innovations, and Bulajic’s appointment is absolutely key to achieving this. His background in design through to commissioning of a range of solutions, together with his knowledge and technical expertise/focus, will give our clients the opportunity to meet their ever more demanding re-

Trane launches Voyager PRODUCTS

Trane’s new Voyager rooftop units are now available in the local market, bringing increased energy efficiency and reliability to supermarkets, movie theatres, warehouses and other commercial and industrial buildings in Europe, Africa and the Middle East. The easy-to-install systems replace the existing Voyager rooftop unit line. The 15-165 kW packaged units offer a choice of cooling-only, gas-fired, heat pump or dual-fuel technologies to meet specific customer cooling and heating needs. Additional energy-saving options such as plate heat exchanger, heat wheel, adjustable fresh air volume and free-cooling are also available. The new Voyager rooftop units are Eurovent-certified (Class A efficiency for a number of units) with a high Coefficient of Performance (COP) and Energy Efficiency Rating (EER). Additional energy savings can be achieved with tech10 MEP Middle East | April 2010

nologies such as heat recovery and a modulating and condensing gas burner. The Voyager’s high efﬁciency makes it particularly suitable for cold chain and storage applications, such as chocolate and ﬂower storage. The new design allows the units to perform in extremely warm or very cold environments. Its ‘plug-and-play’ design, with a single-point power connection and factory-installed accessories, ensures easy installation and commissioning. Comfort, operation, safety and accessibility are improved as a result of a complete redesign of the structure. “Trane Voyager systems combine high reliability and energy savings, easier installation and less maintenance to deliver reduced cost of ownership,” said Pierre Cazal, vice-president equipment systems for Trane commercial business in Europe, Middle East, Africa and India.

Svetislav (Bata) Bulajic

quirements through what are virtually bespoke design solutions for power and data provision. His appointment is critical to what our customers are trying to achieve, and we are delighted to have him on board.” Bulajic’s main focus will be on Marshall-Tufﬂex’s range of

prefabricated wiring systems. The concept behind the MT32 prefabricated wiring system is to take all the hard work out of electrical installations by providing completely pre-wired, pre-tested plug-and-play electrical wiring for projects. It is the MT32 technology – the development of the unique 32A connector that, in combination with the entire range of MarshallTufﬂex modular and prefabricated plug-and-play wiring systems – offers a total electrical wiring solution for a project, eliminating hard wiring on-site and thereby saving time and reducing costs. MT32’s ‘zero harm, zero waste’ properties also provide easy re-conﬁguration wherever and whenever re-positioning of sockets is required.

Metito to build sewage plant in Afghanistan SEWAGE TREATMENT

Desalination and wastewater treatment specialist Metito has been commissioned to design, supply, build and commission a sewage-treatment plant for the local government in Kabul, Afghanistan to serve a population of 6 000 people. “Afghanistan has seen its fare share of misfortune and destruction, which has negatively impacted its infrastructure, and we are delighted to help with the rebuilding of the country,” said Metito group business development director Bassem Halabi. The plant is at the design and procurement stage. It will employ the latest in extended aeration technology, which puriﬁes sewage by the destruction of organic compounds through the use of air. These compounds, which are converted to gas, wa-

ter and sludge form, are then removed, and what remains is clear and odour-free efﬂ uent water that can be used for various applications. Decades of civil war has led to the devastation of the Afghani economy, in addition to the destruction of much of Afghanistan’s critical water infrastructure, which affects many of its citizens. “The availability of sanitation facilities is vital to the rebuilding of Kabul. “We aim to improve the situation with this project, and allow citizens access to the most basic of basics: sanitary services. Afghanistan is not an easy place to work in, but with a dedicated team and support from the local authorities, the plant is expected to be completed by 19 May 2010,” said Bassem. www.constructionweekonline.com

UPDATE

UAE-US trade empowered Empower CEO discusses means to foster bilateral trade BUSINESS

The CEO of Empower, Ahmad Bin Shafar, has discussed ways to foster UAE-US business relations at a meeting with the newly-appointed US Consul General Justin H. Siberell. Principal commercial ofﬁ cer Robert W. Dunn was also present at the historic meeting. Bin Shafar, the head of the largest district cooling service provider in the region, said the UAE is one of the top places to do business in the world, and US businesses are actively seeking to become a major part of this. On the other hand, among the most promising prospects for US exports to the Middle East, according to the US Department of Commerce, is in the area of air-conditioning and refrigeration equipment. The meeting stressed the need for boosting co-operation

and exchanging expertise between Empower and those US companies engaged in the energy sector in particular. The US delegation praised the liberal business climate in Dubai in particular and the UAE in general. Siberell described the emirate as a hub for the entire region, thanks to the far-sighted vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The delegation agreed that Dubai was a success story with worldclass infrastructure. “Empower has succeeded in building world-class district cooling infrastructure, which is considered an ideal economic and environmental solution for residential and commercial units, ofﬁces and hotels in the UAE. I am pleased that residen-

GULF WATER & POWER FORUM 25-27 April Bahrain www.gulfwpf.com BUILDING SUSTAINABILITY INTO THE MIDDLE EAST 28 April Dubai www.itp.net/events Ahmad Bin Shafar

tial units are becoming increasingly aware of the importance of using district cooling as an alternative to conventional AC systems, leading to energy savings and increased environmental awareness.”

SOLAR ENERGY

www.constructionweekonline.com

PROJECT QATAR 12-15 April Qatar www.ifpqatar.com CITYSCAPE ABU DHABI 2010 18-21 April ADNEC, Abu Dhabi www.cityscapeabudhabi.com

Germany in solar JV with Qatar SolarWorld, Germany’s biggest solar company by revenue, has acquired nearly a third of a Qatar-based polysilicon joint venture in a move to shift production abroad in light of rising labour costs at home. The joint venture, Qatar Solar Technologies (QST), will invest more than US$500 million in the construction of a solar-grade silicon plant with a planned annual capacity of 3 600 tons. Production is scheduled to start in the third quarter of 2012. German solar equipment maker Centrotherm will be technology partner for the Qatar-based joint venture. SolarWorld is to own 29% of the joint venture, while partners Qatar Foundation and Qatar Development Bank will own 70% and 1% respectively.

EVENTS

ARAB ENERGY CONFERENCE 9-12 May Doha, Qatar http://aec9.oapecorg.org FM EXPO 2010 18-20 May Dubai International Conference & Exhibition Centre www.eventseye.com HARDWARE + TOOLS ME 18-20 May Dubai International Conference & Exhibition Centre www.hardwaretoolsme.com ME WASTE SUMMIT 2010 18-20 May Dubai Airport Expo Centre www.turretme.com FM Awards 2010 19 May Dubai www.itp.net/events Saudi Aircon 23-26 May Riyadh Exhibition Centre www.eventseye.com

Production will be moved abroad in light of rising labour costs at home

German solar companies are making great efforts in moving production abroad as looming cuts in solar incentives as well

as high labour costs in Germany, the world’s largest solar market, are putting huge pressure on margins.

CONSTRUCTION WEEK RIYADH 8 June Riyadh Exhibition Centre www.itp.net/events

April 2010 | MEP Middle East 11

UPDATE

DuPont appoints new ME director Move reafﬁ rms company’s commitment to the Middle East market APPOINTMENT

DuPont has announced the appointment of Hartmut Reinke as its director for the Middle East, Turkey and Africa. The move reinforces the company’s commitment to further strengthening its presence in the Middle East through the deployment of key senior leadership and coming closer to customers in the region. Reinke is based in Dubai. He joined DuPont in 1985, and has

US$105 BILLION In infrastructure projects are planned or are under construction in the UAE

held various regional and global management positions in product management, R&D, sales, marketing and administration, and has played a key role in spearheading the strategic growth of DuPont in Germany, France, the US, Switzerland and the UAE. He brings a wealth of experience served as DuPont’s director for Central and Eastern Europe, the Middle East and Africa for three years. “DuPont is a science company creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Our growth strategy for the long-term is based on major global trends driven mostly by increasing global population,” said Reinke. DuPont plans to capitalise on global growth opportunities by sharply focusing its innovation pipelines on four mega trends: to

Hartmut Reinke

meet the increasing demand for food productivity; protect people and the environment; decrease dependence on fossil fuels; and capitalise on the growth of emerging markets where about one-third of DuPont’s sales are currently generated. “I am very excited about prospects in the Middle East, an emerging market with immense potential,” said Reinke.

In the past 15 years, the company has opened ofﬁces in the Middle East and invested in developing local skills and talent. Its team is constantly striving to offer increased beneﬁts, new products and solutions for its local customers, based on DuPont science and innovation. “DuPont is committed and well-positioned for accelerated growth in the Middle East region,” said Reinke. DuPont is also focused on regional opportunities such as the infrastructure boom, where US$105 billion in projects are planned or are under construction in the UAE. Construction contracts in Saudi Arabia’s real estate market are expected to top US$60 billion in 2010. Egypt and GCC economies, including Kuwait, Bahrain, Qatar and Oman, are also evolving at a rapid pace.

UAE is still a major source of high-quality contracts CONSULTANCY

Specialist commercial consultancy Traprain Consultants Ltd. is consolidating its presence in the UAE with the opening of an ofﬁce in Dubai. Despite the recent economic turmoil, the region still represents an extremely valuable source of highquality contracts, according to CE Peter Foreman. “Indeed, we believe that the problems in the construction market will provide us with opportunities. We also have a number of existing clients from Europe and elsewhere with operations in the region, and this will enable us to service these from a local base.

“This is a significant and very positive step forward for Traprain. The office in Dubai will increase opportunities for our network of consultants to access not only the UAE market, but also other parts of the Middle East,” said Foreman. The consultancy specialises in offering a range of directorlevel services to industries including oil and gas, construction and energy through a network of top-fl ight consultants. The company sees the move as offering further opportunities to increase its reach, and to service the activities of existing clients operating in the region from a local base.

There are large numbers of both indigenous and JV companies which need high-order advice and training.“ – Dennis Brand 12 MEP Middle East | April 2010

Dennis Brand, who writes a high-proﬁ le monthly legal column for MEP Middle East, will head up the Dubai operation. His background is in commercial and legal areas, specialising in construction, development and energy projects. Traprain Consultants in Dubai will work in association with the UK-based company, and act as a hub for all of Traprain’s consulting activities in the Middle East. Brand has spent many years in London with major law ﬁ rms, advising on infrastructure projects in both the public and private sectors. He later worked with Kvaerner Hydrocarbons, then part of the Kvaerner Group, where he oversaw in particular its pre-contract and post-contract award activities, and the preparation and negotiation of contract terms. He was later appointed com-

mercial and legal services director and company secretary of John Brown Hydrocarbons Limited, and held a similar position at CB&I John Brown Limited and its subsidiaries. In 2005, Brand relocated to Dubai to join the construction, development and energy group of the Dubai office of London law fi rm Berrymans Lace Mawer, with particular responsibility for its non-contentious construction and engineering practice. In January 2008, he co-established the Dubai office of HBJ Gateley Wareing, heading its non-contentious practice, which included construction, development and engineering projects. “There is a market for goodquality management consultancy services providing specialist contractual, commercial and corporate advice on a cost-effective basis,” said Brand. 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 turnover from 2008 to 2009, and has enough projects in hand “to grow 50% this year as well. Our strategic planning for the next three years is based on a growth rate of 25% a year, based on our projections and the specific jobs we are being called to tender on. This is reasonable growth under the circumstances,” says Thrasyvoulou. “Our aim is to get involved in projects with other major contractors in the region and abroad, and to have exposure to a broader client base.” An indication of just how fast the market has changed is that when MEP Middle East spoke to Thrasyvoulou in July 2009, he was confident that the company was well on its way to an impressive AED2 billion target. “We have not achieved this level because of the downturn, especially in Dubai, where a lot of projects have been postponed or redesigned, which will affect cash flow for a long period. In the interim we have become an AED1 billion company, and our immediate plan is to reach the AED1.5 billion level,” says Thrasyvoulou. Al Habtoor Engineering and Specon Limited signed a memorandum of understanding (MoU) in October 2005, with the partnership registered officially in July 2007. Both parties were already highly credible and experienced players in the market, so it was an auspicious beginning for the new company. The immediate result was “tremendous growth within a short period of time,” says Thrasyvoulou. This was due to the complementary nature of the two parties, together with their well-established presence. “The second factor that contributed to quick growth was the pipeline of projects available to us immedi14 MEP Middle East | April 2010

ately through Al Habtoor Engineering. This was a boom time for contractors, who were in search of reliable and qualiﬁed MEP specialists to do an almost impossible quantity of work in terms of the timeframes and demands of the industry,” says Thrasyvoulou.

INITIAL SUCCESS The initial success was also largely due to the vast experience in MEP of the combined core team, which had garnered 20 to 25 years’ experience prior to Al Habtoor-Specon arriving on the scene. “Most of the senior personnel were part of an earlier establishment led by myself,” says Thrasyvoulou. This also helped to mitigate the impact of the global downturn in late 2008. “In fact, due to the pipeline available with our partners, the downturn in the area, and specifically in Dubai, has not affected the growth of Al Habtoor-Specon as much, though the growth would have been higher if there had been no downturn, of course.” Thrasyvoulou says diversification was a conscious strategy right from the beginning. “Even though our project pipeline was big enough to sustain us during the immediate shock of the downturn in this area so that we kept on growing, I have always been a firm believer in not keeping all your eggs in a single basket. So at the time of the downturn we only had about 20% of our business in Dubai, and were not heavily affected.” This was due to geographic diversification, as “you do not want to be in one area only.” As a result the company “expanded cautiously and steadily,” moving into Abu Dhabi and Qatar. “Geographically we are now tendering for projects in Saudi Arabia, Kuwait, Bahrain and Oman as well, and other areas where we hope to get business in order to diversify our portfolio.” Then there is diversification of specialisation. “We began as an A-Z turnkey con-

tractor, with the traditional scope of HVAC, plumbing and sanitary, electrical and BMS. We also had a lot of experience in MV and HV substation work and transmission lines.” Hence an energy and power division was formed, culminating in the signing of a MoU to enter into a consortium with VINCI Energies of France “to participate in and execute projects in Qatar for MV and HV substations. The prequaliﬁcation and representations to the relevant ministry have been completed, and we are in line to obtain documents for the ﬁrst tender. This three-billion Qatari Riyal project will increase our works in hand substantially,” says Thrasyvoulou.

DIVERSIFICATION “Our diversiﬁcation also covers the infrastructure, MV and external facilities in projects like Sheikh Zayed University, Paris Sorbonne University and Khalifa Port and Industrial Zone that the company is currently carrying out. We also have qualiﬁed engineers and design-

Paris Sorbonne University

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 is another trend in terms of green building and sustainability. Needless to say, within MEP we cater for complex systems like ELV, audio-visual, CCTV, fire alarm and fire fighting, for example,” says Thrasyvoulou. Commenting on the current state of the market, he says: “Personally I believe that after the initial shock of the downturn in late 2008, the market in general has absorbed this and stabilised. I do not foresee a much bigger downturn; I cannot say we have reached the absolute bottom either, because there are so many factors involved. “From a personal point of view, I do believe we are nearly at the bottom. One thing I am sure about is that the liquidity, the availability of money through the banks, is better than a year ago. During the downturn, finance for projects was largely unavailable, as banks were in a more difficult position than contractors even. These days I am optimistic that even if we are not at the bottom, we are nearly there and that the liquidity is getting better. “I believe that opportunities are good in areas like Qatar, Kuwait, Saudi Arabia and Bahrain for an MEP contractor of our quality and depth. Weaker companies have closed down or merged, and the number of major competitors capable of executing big projects has been reduced,” says Thrasyvoulou. However, increased competition for a diminished pool of projects has placed increased pressure on pricing. “I have recently seen a drop in prices. A lot of MEP contractors, in order to sustain themselves, are becoming more competitive. I hope they will not www.constructionweekonline.com

go to the extreme of dropping prices to the level where quality is sacriﬁced and projects cannot be executed properly. This is a dangerous thing in my opinion. Clients must be very cautious in this respect.

DUBAI HAS SUFFERED MOST “Certainly the global economic recession has affected all countries. In the UAE, Dubai, due to the previous unsustainable boom and the sudden global downturn, has suffered more than other areas in the Gulf in terms of growth, fewer new projects, a slowdown in existing projects, especially hotels and residential/commercial developments. I believe that, after the initial shock in 2008 and the sustained recession in 2009, 2010 will still be a low-growth year – specifically in Dubai, but even in general in the Gulf region.” Thrasyvoulou says this view is reflected in a shift in the market. “In terms of work, there is a definite shift from the residential/commercial sector to education/healthcare and industrial/infrastructure work – what I call the traditional sectors. “Our recent success in carrying out two of the major educational projects in the area – Sheikh Zayed University (in a joint venture with Hastie) in the magnitude of AED540 million and Paris Sorbonne University (in the magnitude of AED240 million) – is itself evidence of this shift. “Both of these projects include related infrastructure works and complex specialised systems. In addition, the Khalifa Port and Industrial Zone project we secured recently, in the magnitude of AED320 million, verifies this further.

“There are many other projects in the pipeline, like New York University, Tawam Hospital, Al Ain University and the Abu Dhabi Airport. At present we are participating in almost all of these tenders, and are optimistic that some major projects will be secured,” says Thrasyvoulou. Such optimism is based on the company’s good engineering background and in-house design capability. A big problem to date has been the time constraints demanded by clients in order to enable them to capitalise speedily on their returns. “Often the design is not completely ﬁnished and the scope is not very well deﬁned. Then if the MEP contractor does not have the capability to check the design in terms of system workability, the end result will be a project with problems. MEP is the biggest single element after the main contractor in a building project. Buildings suffer if the air-con does not perform properly or there are plumbing problems at the end. We are a major part,” concludes Thrasyvoulou.

CURRENT PROJECTS • Paris Sorbonne University, Abu Dhabi • Sheikh Zayed University, Abu Dhabi • Rotana, Shangri-la, Merweb in Doha • Saadiyat Island accommodation, Abu Dhabi • Khalifa Port and Industrial Zone, Abu Dhabi • Kempinski Residences, Dubai • Masdar Institute of Science and Technology • Works on Dubai Pearl • Business Bay Hotel, Dubai

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 Middle East? The Ariston Thermo Group, oup, formerly the Merloni TermoSanitari Group, roup, has been operating in the Middle East st region for more than 30 years, together with our partner Paul Weil Company LLC, C, which operates in some of the countries of the region. We entered the market with our historical core business product, electricc storage water heaters, and have sold several everal million of them in our long presence e in the market. Nowadays Ariston has a unique recognition in the market thanks to the proven quality shown over three long g decades. In the last ﬁve to six years we have also launched new product lines such as gas boilers and solar systems. How important is the MENA NA region to the global group? We have launched our different ferent product lines in the 13 coununtries that we are managing g from our Dubai ofﬁces. These do not include North Africa; but from Dubai we also cover the Levant countries, KSA, GCC, Iran and Afghanistan. The Ariston Thermo Group has a total turnover of above US$1.8 billion, with a global sales network which distributes in more e he than 150 countries. It is the most international player in % of its sector, with almost 50% e EU sales coming from outside countries. ces do What products and services you offer here? In our product portfolio for the ffer difMiddle East region we offer ferent models of electric storage ties from water heaters with capacities

16 MEP Middle East | April 2010

In the water-heat water-heater sector, Ariston is the major player in the UAE market today, with internal marketing estimations giving us a market share about three times tim larger than our nearest competitor. “ nea Emanuele Stano 10 to 3 000 lit litres. We are also commercialising instantan instantaneous electric and gas water st heaters, gas storage water heaters, gas boilers and solar sy systems. In 2010 we are launchrevolutio ing a revolutionary range of sanitary water an as per the evolution of our heat pumps, and water heater rrange, in accordance with the latest Europea European directives on energy saving, introd we are introducing a comprehensive new product range with new aesthetic and technical features. Can you tell us a bit more about your Nanomix innovation? This provides m more hot water in comparison with a traditio traditional water heater of the same Spe cally, a special water inlet capacity. Specifi guara pipe guarantees 10% more hot water output. It is based on improved mixing efficiency: during a water draft, no normally the cold inlet water ‘di ‘disturbs’ the hot water inside th tank, so that the outlet water the te temperature will go below the co comfort value of 40°C. The special inlet pipe keeps the cold and w hot water layers well-separated, so that th the water draft can last longer outle hot water will reach later a (the outlet temperature b below 40°C). liatio with Europe obviously means Your affiliation tre the latest trends and developments get in-

www.constructionweekonline.com

PROFILE troduced to the MENA region quite quickly? Exactly. With six million water heaters produced a year, and 19 factories all over the world, the group must always respect the latest and strictest regulations coming from any of the major markets. The Middle East market, being supplied from the same factories which manufacture goods for Europe, offer only CE-certiﬁed model ranges, which comply with European regulations in terms of safety and performance.

SIX MILLION

The number of water heaters Ariston Thermo manufactures globally per year

Do your products have to be adapted at all for local conditions? Our product lines have been calibrated on the most extreme conditions to satisfy the market demands coming from any of the 150+ countries where we sell our goods. In our region, only KSA requires a special safety valve to respect the SASO regulation. Therefore we have a speciﬁc full line of products equipped with this accessory for our Saudi customers.

and retail. With the booming growth in the real estate market over the last decade, a big effort was placed on tender sales, and this guaranteed us the biggest market share and premium recognition today. We can answer the demands for any hot-water requirement, from domestic use to industrial. Nowadays the opportunities are coming from the ‘green’ technology approach in new buildings, but also from neighbouring regions such as Eastern Africa and Central Asia.

What are the main markets you serve? We have dedicated sales teams for projects

What gives you the edge in such a highly competitive market?

LATEST TECHNOLOGY FOR THE MIDDLE EAST The Ariston Thermo Group has launched a new range of electric storage water heaters (50 to 100 litre capacity) in the Middle East. Anticipating continuous technological innovation, and in respect of the latest European standards on energy efficiency, the Ariston worldwide product offering has been updated. Commercialisation of the updated range in the Middle East began in January 2010. Technical specifications such as the heating element power rate, voltage, tank working pressure and external dimensions have not been changed at all. However, building on the strong foundation of the renowned quality of Ariston products, certain improvements have been introduced to all models in the range. These include Nanomix technology, which guarantees improved performance due to new internal components, a new unbreakable external thermometer, new finishing technology for the external casing, new Italian-designed aesthetics and more resistant carton boxes. 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 panel with a ‘smart’ thermometer, an ABS safety package that includes active electric safety, an anti-overheating system, an anti-dry heating function, an auto diagnosis function and an anti-bacterial function. Titanium Plus glass-lined is offered on the PRO ECO model. The existing Ti Tronic and Ti Tronic BEST ranges will be replaced by the new PRO ECO range. The existing SG R range will be replaced by the new PRO R range, while the existing SGHP range will be replaced by the new BLU R range. The Ariston Thermo Group, a global leader in heating and hot-water products, has a leading position in three key sectors: water heating, central heating and air-con, and components. Its range includes wall-hung and floor-standing boilers, water heaters, solar systems, heat pumps and air-con.

www.constructionweekonline.com

Thanks to our presence over the last 30 years and the recognised quality of the products, Ariston continuously increased its presence in this market, with several competitors appearing and disappearing in terms of the competitive scenario. In the water-heater sector, Ariston is the major player in the UAE market, with internal marketing estimations giving us a market share about three times larger than our nearest competitor. What are some of the major trends impacting on the market here? Are green building and sustainability major drivers? As a group, yes, this is a focus, with big investment in solar systems, heat pumps and energy-saving appliances. In the Middle East we are in the starting phase, with a lot of interest being expressed in solar. It will still take some years to reach a mature market level in this regard. Sensitivity to energy efﬁciency has still not matured here. I am sure this will happen in the next few years. The low cost of electricity is not pushing users to save on energy consumption. However, the government is putting much effort into this new green trend, and the results will soon become apparent, with solar systems becoming more and more popular in both domestic and commercial buildings. How has the economic downturn affected business regionally and globally? Of course, the second half of 2008 and the whole of 2009 presented us all with a challenging scenario. From this altered economic perspective, new opportunities emerged, and if markets such as Dubai showed a slowdown, others such as Abu Dhabi, Qatar and KSA kept on at high levels, guaranteeing an overall good performance for the area. Emerging markets are still showing strong growth. Globally this has been the occasion to revise some procedures in order to consolidate the growth of previous years and to be even more competitive as soon as the markets again start pulling in the sales. What is your outlook for the year ahead? In our sector we probably still have to face the impact of the stopping of many realestate projects in the region. Few new construction projects have commenced in the last 18 months, and this will mean little demand for water-heating appliances during 2010 and 2011. However, as stated, this will be compensated for by new markets that we are exploring, along with new opportunities arising from the new product lines that we are launching.

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’.

sk almost anyone what ‘setoff‘ (sometimes called ‘contracharging’) means, and they will quickly provide an answer to the effect that set-off is where the amount of a claim is deducted from another liability, following which only the net sum is paid. Ask the supplementary question as to whether there is more than one type of set-off, and not so many answers will be forthcoming, and certainly not with such speed; however, more of that later. In construction and engineering contracts, where set-off is to be applied within the same contract, it is usually allowable if the claim and liability are both liquidated sums – that is, deﬁned amounts. Such contracts usually provide for set-off in any event, although may require notice to be served. Some contracts, particularly those being industry-standard forms, will include provision for set-off and describe the provision as such, whereas others will include provisions which clearly amount to set-off, but without mentioning the term. Where set-off is to be applied as between different contracts, this generally can only be done if the contracts contain clear provision for it. However, this is not so unusual where the same parties have entered into more than one contract between them, as in the case of supply contracts. What is more unusual, however, is where set-off is allowable between different parties to different contracts – for example, where at least one of the parties, and possibly both, to a contract are corporate entities and part of larger groups. Provision can be made in the contract that, where there is a claim from another member of the same group in respect of another contract, one party may set-off against the other the amount due (or claimed) by that other member of the same group. This may be considered somewhat unfair, as the party 18 MEP Middle East | April 2010

who is having the set-off applied against it has no real opportunity to challenge the setoff until it has been applied. However, set-off in such circumstances can only occur if such provision is expressed in the clearest terms. Set-off, however, is important where it may be difficult to pursue the other party by legal action, or if they are at risk of becoming insolvent. Let us return to the subject of types of set-off. There are four basic types: legal set-off, equitable set-off, banker’s setoff and insolvency set-off. Legal set-off can only be used as a defence to court proceedings, and the claims in respect of which set-off is to be applied must be defined or liquidated sums, which can be proved. It is important that the claims be both due and owing at the time when the claim is made. It is important also that the claims or debts be between the same parties and that they are held in the same capacity. Unlike the examples discussed above in respect of construction and engineering contracts, legal set-off claims do not have to result from the same or even closely related transactions. It is important, however, to keep in mind that contra-claims which are not defined or liquidated sums but estimates when the set-off is proposed can only be confirmed following a court judgment or arbitration award, and cannot of themselves be accepted as valid claims for set-off. Equitable set-off is different from legal setoff in that it does not need court proceedings to make it an available option for the debtor; moreover, contra-claims must be as a result of related, if not the same, transactions. Unlike legal set-off, claims can be for undefined or unliquidated sums – for example, damages. The sums concerned must, at the time of the set-off being applied, be due and owing. If for an undefined or unliquidated sum, the amount must be a reasonable assessment and made in good faith. Banker’s set-off is where the customer of a bank has more than one current account or

loan account with the same bank, not necessarily the same branch, and one of the accounts is behind in terms of repayment of the debt. The bank may in such circumstances transfer funds from the customer’s account which is in credit to pay the account which is in debt. Although banker’s set-off does not require either a judgment of a court or arbitration award before it can be applied, many banks will inform customers by including such set-off provision in the literature which customers are required to sign when applying to open a bank account. Insolvency set-off is available in certain jurisdictions where there is an established insolvency law and procedure, as in the UK. Insolvency set-off cannot be varied by terms written into a contract. There are very limited circumstances where set-off is permissible in a bankruptcy or liquidation, because set-off in such circumstances goes against the rule in insolvency that unsecured creditors must be treated equally in respect of their claims. Insolvency set-off aside, it is acceptable to include a clause within a contract which limits or even excludes the right to set-off between the parties. If drafted properly, such clauses are enforceable and are not considered as being contrary to public policy. However, that being said, such clauses must be drafted properly if they are to be enforced. Note, however, that the right to apply setoff is variable in different countries, and it is better to establish such a right in the contract itself. Again, remember that each company is a separate ‘person’, and set-off rights generally only run within a particular contract and between the same parties. If you want something more extensive, it needs to be stated clearly (and may be difﬁcult to enforce in practice). Dennis.Brand@traprain.com 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 size of the project, and the power required. The biggest demand from the company at the moment is units between 500 kVA and 1 250 kVA. Some of these run separately, while others are connected to each other, thereby creating a small power station. At present the bulk of Action’s business is derived from Dubai, but the company is also serving Abu Dhabi from its ofﬁce and yard in Mafraq.

Aggreko can supply generators from 15 kVA to 2 000 kVA in single units, as well as multi-megawatt packages using 1 250 kVA units linked together. Smaller sets are used to power Portacabins, piling machines and hand tools, while construction cranes are usually powered by 250 kVA or 320 kVA generators. Large-scale construction projects often require multi-megawatt power packages to power labour camps.

Altas Copco provides portable and stationary generators. The company has reported increased activity in the larger 500 kVA to 1 000 kVA category due to power shortfalls in some urban areas, but it mainly supplies contractors who require units in the 20 kVA to 275 kVA range. The company believes there is a trend towards buying as opposed to renting, as only 25% to 30% of generators sold go to rental companies.

20 MEP Middle East | April 2010

www.constructionweekonline.com

GENSETS CUMMINS

FG WILSON

Cummins Inc., a global power leader, is a corporation of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, controls, air-handling, ﬁltration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana in the US, Cummins serves customers in more than 160 countries through its global network of 550 company-owned and independent distributor facilities, and more than 5 000 dealer locations. Cummins reported net income of US$755 million on sales of US$14.34 billion in 2008. Cummins Middle East FZE, the ﬁrst wholly-owned dependant distribution entity of Cummins Inc. in the region, was established in early 2000 in order to strengthen its distribution network’s reach and better support the increasing engine population in the area. It is headquartered in the Jebel Ali Free Zone in Dubai, and is responsible for the UAE, Bahrain, Yemen, Qatar, Jordan, Oman, Afghanistan, Lebanon and Iraq. For more information, visit www.uae.cummins.com, e-mail cummins.middleeast@cummins.com, or contact +971 4 8830461.

FG Wilson designs and manufactures diesel and gas gensets. Its most popular products for construction sites range from 60 kVA to 500 kVA. It also gensets from 10 kVA to 2 200 kVA so as to be able to cater for customer demand. All these can be supplied as sound-attenuated and weatherproof canopied gensets. FG Wilson offers technical support from presales and aftersales support from installation to commissioning. Its Middle East business includes Iraq and Afghanistan.

HIMOINSA Founded in 1982, Himoinsa is a manufacturer of gensets based in Spain. It has suppliers across the world, including the Middle East, which distributes its products and supplies spare parts. The products found most popular on construction sites are Himoinsa’s 100 kVA to 500 kVA units.

INGERSOLL RAND Ingersoll Rand supplies 20 kVA to 600 kVA diesel gensets. Its business comes from almost all sectors that require electrical power. Business ﬂuctuates from one sector to another depending on the general economy. For example, the construction industry has tradi-

tionally lead growth in the GCC. However, the slowdown due to the global economic crisis has lead to a resurgence in renting as the preferred method of acquiring gensets for the construction sector.

KIRLOSKAR Kirloskar’s 250 kVA genset is widely used at construction sites to power Portacabins, labour camps and various other equipment and accessories required on-site. Over 50 000 Kirloskar green gensets are manufactured annually, and all are ISO 9001/9002 accredited. Kirloskar Middle East FZE is located in Ajman, from where it supports the entire region. Kirloskar has a substantial share and a presence in the engine and diesel genset segment in the GCC.

MANLIFT GROUP Manlift Group distributes a large ﬂeet of gensets built speciﬁcally for harsh conditions and extreme temperatures. These feature large internal fuel tanks for 24 hour operation. They range from 30 kVA to 1 250 kVA. The company supplies the UAE and Qatar, and has worked on the Dubai Metro, Palm Jumeirah, Dubai Festival City, Motor City, Al Raha Beach and Yas Island.

CAT GENSET FOR CHP APPLICATIONS Caterpillar has announced the availability of the G3512E advanced natural-gas-fuelled genset, designed for maximum efficiency in extended-duty distributed generation and combined heat and power (CHP) applications. Driven by a Cat electronically-controlled, lean-burn gaseous-fueled reciprocating engine, the G3512E genset has been designed to offer a high power density and excellent fuel efficiency, while maintaining tight NOx control. It provides flexibility to operate on pipeline natural gas with a wide range of methane numbers without sacrificing efficiency and performance, and delivers up to 41.7% ISO electrical efficiency without water pumps. The Cat G3512E genset operates at 50 Hz/1500 rpm with the Miller combustion cycle, is rated at 1 000 ekW, and has a standard NOx emissions rating of 500 mg/ NM3 at a separate circuit aftercooler (SCAC) inlet water temperature of 54˚C. It is built on a heavy-duty, diesel-based platform and uses an advanced camshaft and turbocharger design to achieve high mechanical efficiency.

www.constructionweekonline.com

The Cat G3512E genset

It additionally features an open combustion chamber design, which allows for a lowpressure fuel system of 10 to 35 kPa. A standard feature is a digital microprocessor gas engine control module that automatically and precisely regulates ignition, engine governing and air/fuel ratio for optimum fuel

econom economy and stringent NOx con control. Its patent-pending ai air/fuel ratio control m monitors charge air density and maintains NOx within tight tolerances under a variety of ambient and load conditions. It features an individualcylinde detonation sensing cylinder and tim timing control, with a precham prechamber-type spark plug design for f extended service life without adjustment. Additional functionality includes an emergency stop fuel-purge cycle and programmable protective relaying functions. The genset is easily tailored to speciﬁc applications. Additional features include exhaust options, alarm and remote annunciator modules and battery chargers. It is also available with an optional 250 mg/ NM3 NOx emissions setting and 54˚C SCAC temperature rating.

April 2010 | MEP Middle East 21

AT ;9(5,, WHEN IT COMES TO ENERGY AND THE ENVIRONMENT, WE NEVER FOLLOW. WE 3,,+.

WITH THE HIGHEST PERCENTAGE OF LEED ACCREDITED GREEN BUILDING PROFESSIONALS IN THE INDUSTRY, IT’S NO WONDER TRANE HAS RECEIVED RECOGNITION FOR ITS ENERGY AND ENVIRONMENTAL STEWARDSHIP IN VIRTUALLY EVERY CATEGORY. AS A CHARTER MEMBER OF THE CLINTON CLIMATE INITIATIVE AND PLATINUM SPONSOR OF GREENBUILD AND THE LEED FOR SCHOOLS INITIATIVE, TRANE HAS THE DIRECTION, STRATEGIES AND GLOBAL COVERAGE TO MAKE A POWERFUL CONTRIBUTION IN THE FIGHT AGAINST GLOBAL WARMING AND CLIMATE CHANGE. LEARN MORE:

DUBAI OFFICE

- PO BOX 31000 - DUBAI, UNITED ARAB EMIRATES - PHONE: +971 04 346 0090

AWARDS:

BEST OF THE STRATOSPHERIC OZONE PROTECTION AWARD 2007

| HVAC PLANT ENGINEERING PRODUCT OF THE YEAR – GOLD AWARD 2007 | U.S. EPA CLIMATE PROTECTION AWARD 1999 U.S. EPA ENERGYSTAR® BUILDINGS ALLY OF THE YEAR 1998 | U.S. EPA STRATOSPHERIC OZONE PROTECTION AWARD 1998 SUSTAINABLE BUILDING INDUSTRY COUNCIL BEST PRACTICES AWARD 2004

ENGINEERED SYSTEMS

CONTROLS

SERVICES

PARTS

TRAINING

TRANE.COM

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.

Dow Wire & Cable, a business unit of Dow Chemical Company, manufactures critical components for wires and cables

www.constructionweekonline.com

enrice said that, although the global recession has resulted in a dip in electricity consumption, particularly in the West, “We foresee consistent growth in the developing 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% consistent 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 together. 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 exclusively 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 business interests, which run the gamut from heavy and medium voltage to consumer electronics, automotive and building and April 2010 | MEP Middle East 23

CABLES construction. These are health and nutrition, energy, transportation and infrastructure and consumerism.

ASPIRATIONS “Some 6.5 billion people have the same aspirations in terms of the cars they drive and the type of air-con they want for their homes, which we believe will drive electricity consumption in a signiﬁcant and sustained way. 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,” said Penrice. “The issue is not just about growth in emerging markets. In developed markets, the power infrastructure -- especially in the US and many parts of Europe -- is old and needs renewal. The power infrastructure of

US$ 1.5BN The Dow group’s R&D budget

New York, for example, is 100 years old and is crumbling. So there are investment opportunities not just in developing markets, but in mature markets as well. “Then there are the new challenges posed by climate change and renewable energy. I think energy efﬁciency has always been something this industry has not really focused on, in that the 9% average loss between the generation and an consumption been one of those of electricity has always be about. As soon as things that nobody talks ab you start putting a price on that 9% in terms going to have to pay of how much you are goin for carbon emissions, that 9% becomes real money, at which point there the is going to be a tremendous focus on reducing it. There re is not one magic solution, solution but we believe that energy efﬁciency iis going to be a major driver. Another trend is the g global investment in renewable energy. “For the cable industry, solar power is an even bigger opporture nity. The average yield of renewable energy is 20% due to weather variab variables, but you still infrast need the same cable infrastructure. Renewable energy also tends to ffocus on remote locations, which mea means concomitant t growth in the transmission and distribution sectors,” said Penrice.

about 12 years from starting a project to getting approval. It really has become such a political process it is almost impossible to get new overhead lines. “So increasingly as the technology continues to develop, and high-voltage technology in particular, the alternative of transmission underground has grown from what has been a relative niche in the industry to very much a mainstream, and one we believe will become even more competitive and mainstream as a means of transmitting electricity,” said Penrice. Growth in the global cable industry is predicated on finding solutions for transmission efficiency and longevity. “How do you get more out of your existing infrastructure? How do you put the economic case for reliability and longevity? In terms of installation, it costs roughly three times more to bury a cable than it does to make it. So if we are going to make underground cables more costeffective, then the cost of installation needs to come down.” On the issue of environmental awareness, Penrice said that “although green is a very broad subject, it refers to sustainability of materials and energy efficiency in particular. Again this is something that this industry has not really focused on. There are many other industries that have green as almost their number one driver. But we see it as coming in the cable and power industry as political pressure, and climate change in particular, is brought to bear.

RELIABILITY “What matters to everyone is having a system in the end that is the most reliable and cost-effective. What often happens with a cable buyer is they want the cheapest cable … so is the cheapest cable the lowest cost cable? No. The cost of a cable is around US$3/

URBANISATION URBAN Rapid urbanisation is le also leading to growth und in underground cable instal installations. “The days of running cables in overhead line lines is getting more and more mo dif cult. As big difﬁ cit cities grow, undergr ground installati tions are growing fa faster. I think in th US now for the a new overhead line you need

24 MEP Middle East | April 2010

For the cable industry, solar power is a big opportunity. Renewable energy focuses on remote locations, which means growth in transmission and distribution. “ Jon Penrice

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 itself, but in the operation. The initial cable costs 14%, what we call the lifetime cost of the cable, while the installation is nearly three times that at 40%. This is where the longevity and reliability issues come in, together with asset management. If you end up in an asset-replacement strategy, you will end up facing signiﬁcant replacement costs,” said Penrice. An invisible element of the cost calculation that is often ignored is the issue of energy

loss. “The average is 9%, which is a global ﬁgure, but it can be much higher if you have commercial losses. Best practice globally is 4% to 5%. In terms of a cable with a 40-year lifespan, that energy loss accounts for about a third of the cost. That is just the cost of the electricity losses; it does not include the carbon costs that may accrue. “So our philosophy is really to tackle the big picture: the cost of installation, reliability and longevity, and see how we can bring solutions to bear to reduce that cost. Dow

DUCAB CELEBRATES 30 YEARS Ducab, a leading manufacturer of high-quality power cables in the Middle East, showcased its latest technologies in cable manufacturing at this year’s Middle East Electricity Exhibition at the Dubai International Convention and Exhibition Centre. The company displayed products from its Special Cables Unit, launched a new range of Ducab Connect

www.constructionweekonline.com

products, and hosted a series of joint seminars with Dow Wire & Cable and FM Sudaﬁx. “This year Ducab is celebrating 30 years of powering the region as a manufacturing leader,” said MD Andrew Shaw. Ducab has launched a new ofﬁce in Qatar and is also planning a number of expansions outside of the UAE market.

Inside is really a strategy aimed to try and raise awareness of the importance of quality in the industry. The lowest-cost, most reliable cable system is built on high-quality manufacture of compounds and semi-conductive all the way through to the cable itself. “Our approach with Dow Inside is to go to the marketplace itself and point out the importance of these quality standards. Quality standards around the world are very varied: some are demanding, while some are not. Standards tend to be negotiated in committees, which will go for the lowest common denominator, and so standards get diluted. In the end they become minimum standards, which I think is normal. “But there are better alternatives. We see the opportunity for high-performance cables. Rather than change the standards, which can be a very long process, it is far better to have high-quality cables from the start and say these are the beneﬁts that can be achieved. But this can only work if we have a combined collaborative approach in the industry,” said Penrice.

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 in the GCC over the last three years was around 19% ... it tumbled to almost 5.5% between 2008 and 2009.“

MEP services are an integral part of building activities, and the most demanded services within the construction sector, as it is required to keep building functions fully operational. So any impact on economic growth will directly impact the growth of the construction sector – which, in turn, will impact the growth of MEP services. The growth rate of MEP services in the GCC over the last three years was around 19%, a period when there was a boom in the construction sector and oil prices were soaring. However, the growth rate showed a slight dip in 2008, and tumbled to almost 5.5% between 2008 and 2009 due to the sluggish economic and financial outlook, thereby reflecting the reduction in construction activity. We expect the market to grow at a compound annual growth rate of 11% during the next five years, showing a gradual incline in growth during the end of 2010 or at the beginning of 2011 till 2013 owing to higher investments in real estate and infrastructure projects, mainly because of the GCC’s significant market characteristics and resilience.

Vivek Vijayakumar one or two of the three types of services by competing directly with other contractors or by sub-contracting with top companies, thereby providing more opportunities for the growth of local players. We have noticed that many civil contractor companies/real estate developers are trying to enter the MEP services market with their in-house technical capabilities in order

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?

You talk about a ‘fragmented and highly competitive market’? The market is fragmented and highly competitive mainly because of the presence of many small and medium scale companies at the local level, which have capabilities to do either 26 MEP Middle East | April 2010

25000 Revenue (in USD million)

The criteria are based on the comments and estimates from major market participants on the overall market size across GCC countries; their perceptions and expectations on the current and future market have also been taken into consideration. Finally we summed up their revenues using a bottom-up approach to estimate the market. We also considered the overall population of small, medium and large companies in each of the six GCC countries and the percent share they account for based on the revenue bracket they fall into through considerable sample-size coverage.

20000 15000

22446.4

10000 5000 0

13539.9 2008

2010 Year

www.constructionweekonline.com

MARKET ANALYSIS to maintain their proﬁt levels. Many international companies are entering/expanding into the market either through tie-ups (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 consolidation happening in the GCC market in terms of MEP services. MEP service providers are trying to get into the FM services business as a valueadded resource (aftersales services) mainly to streamline their proﬁt levels and to maintain their sustainability levels in order to offer a comprehensive, one-stop service solution and to balance the risk involved in both businesses.

Have the entry barriers into the MEP sector changed significantly as a result? Due to the reduction in construction activity, increase in construction material and labour costs, players are likely to assume higher risks and finally end up with lesser profits, thereby resulting in limited or lesser entry into this market currently, which may likely change in the future once MEP costs go down. These are some of the barriers that are likely to impinge the entry of global, regional and local players.

The sector ‘is likely to take off in 2011’? Yes, the reason is an increase in investment from both the public and private sectors in real estate and infrastructure, which is expected to boost the market further during the end of 2010 or at the beginning of 2011. The factors that could impinge on this takeoff are:

MAJOR FINDINGS • The most demanded services within the construction sector are MEP; • The market was valued at US$13.53 billion in 2008. This is estimated to reach US$22.44 billion in 2013, at a compound annual growth rate of 10.6%; • The fragmented and highly competitive market is likely to take off in 2011; • Saudi Arabia, Qatar, and Abu Dhabi are expected to shore up the market for MEP services till 2013; • Many civil contractor companies/real estate developers are trying to enter the MEP services market; and • MEP service providers are trying to get into the FM services business as a valueadded resource.

www.constructionweekonline.com

MEP Services Market Revenue in GCC by Countries

2.9% 3.8%

41.8%

5.2% UAE

12.3%

KSA

34.1%

Qatar Kuwait Oman Bahrain

• Delay in the commencement of construction projects due to lack of availability of funds; • Lack of investor conﬁdence; • Decrease in oil prices; • Volatility in exchange rates; and • Higher inﬂation costs and construction commodity prices etc.

Has the downturn brought to light any structural problems or deﬁciencies within the MEP sector? The following structural problems or deﬁciencies are prevalent within the MEP sector: • Higher attrition rates is a major problem during the downturn, as emerging economies are drawing labourers away from the region, posing a threat to manpower;

MEP service providers are trying to get into the FM business to maintain sustainability and to balance risk.“ Vivek Vijayakumar

• Reluctance of existing players to take on large-scale projects that require a high level of technical expertise and innovation and involve a high risk due to the increase in construction commodity/material prices and labour costs; • Delay in payment to the contractors due to insufficient fund reserves, which result in stoppage/postponement of projects; • Volatility in exchange rates and material prices, which tends to result in the rescheduling of projects/tenders; • Higher inflation costs are affecting project development directly by a delay in commencement or sometimes even the stalling of projects. In light of this, contractors are instituting a two-stage tender process, which will allow them to keep a project moving without stalling, thereby removing risks as well as enabling efficient management of pricing and price inflation.

You state that Saudi Arabia, Qatar and Abu Dhabi are expected ‘to shore up the market for MEP services’? Yes, the Saudi Arabia, Qatar and Abu Dhabi economies are relatively insulated from the ﬁnancial downturn due to their surplus cash reserves and the latest stimulus packages announced by their governments, providing more opportunity for MEP services going forward. According to Proleads, there are around 2 837 real estate projects estimated April 2010 | MEP Middle East 27

MARKET ANALYSIS to be worth in excess of US$2.4 trillion under construction, with the bulk of the development being carried out in Saudi Arabia 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 activities, backed by government spending, especially in the infrastructure sector, whereas the UAE is considered to be even more profitable than its neighboring counterparts, in the range of 10% to 11%, and it will remain the same due to its steady focus on huge iconic and sophisticated projects.

MEP Service Market Revenue in GCC by Services in

19.2% 37.6%

Has there been much of a ‘brain drain’ due to the downturn? Yes, the downturn in GCC nations has created job insecurity, thus causing higher attrition rates. These are some of the reasons for drawing labourers away from the region as the emerging economics are providing opportunities in terms of job securities and higher salaries. The impact is greater on the informal sector due to reduced proﬁt margins as a result of players being unable to sustain their competitiveness amidst higher inﬂation, construction material and labour

43.2% Mechanical Electrical Plumbing

MEP GETS A LEG UP WITH THE EXPANSION OF THE CONSTRUCTION INDUSTRY, A surge in population, economic expansion and subsequently higher investments in real estate and infrastructure projects have generated considerable oil revenues and consequentl, cash reserves, aiding the exponential growth of the GCC construction sector. This development of the construction industry bodes well for the MEP services market, since it is considered an integral service within the construction industry. New analysis from Frost & Sullivan, entitled ‘Strategic Analysis of the Mechanical, Electrical and Plumbing Services Market in the Middle East’, ﬁnds that the market earned revenues of US$13.53 billion in 2008, and estimates this to reach US$22.44 billion in 2013, at a compound annual growth rate of 10.6%. The fragmented and highly competitive market is likely to take off in 2011, once the effects of the recent economic slowdown and reduced construction activities wear off and the economy rebounds. Nevertheless, Saudi Arabia, Qatar, and Abu Dhabi are expected to shore up the market for MEP services till 2013, as their economies are relatively insulated from the ﬁnancial downturn,

28 MEP Middle East | April 2010

thanks to their surplus cash reserves and the latest stimulus package announced by the government. “Moreover, improved awareness about energy and environmental sustainability, as well as public health and safety concerns, are expected to go a long way in boosting the market for MEP services in the next ﬁve years,” says Frost & Sullivan research analyst Vivek Vijayakumar. “Already the most in-demand service of the construction industry, MEP’s popularity will soar further with the strengthening of the GCC’s commercial, residential, hospitality, infrastructure, and educational sectors.” Meanwhile, the GCC has mandated all types of buildings to install technologies and services that will make them environment-friendly. Owing to such constant demand, contractors are continuously upgrading their services by investing in in-house pre-fabrication, design, and service capabilities to diminish the strong bargaining power of the end users. Such measures will involve dealing with the escalating cost of construction, construction commodity prices, and labour cost. The prices are not likely to decrease due to the steady global demand and rising accommodation costs

of labour, which could severely constrict contractors’ proﬁ t margins. The market could also be adversely affected by the labour drain, as emerging economies are drawing labourers away from the region. In such a scenario, it has become vital for a company to recruit and send employees to training institutions to hone their skills, initiate training in-house or provide on-thejob training. However, contractors can skirt the issue of manpower through technological developments, which will limit on-site prefabrication and thereby lower time and manpower needs on-site and boost productivity hours. Additionally, the involvement of design engineers in the early stages of construction and correct selection of materials will ensure proper building integration and sustainability by reducing its operating costs. “To gain a competitive edge, it is critical for MEP contractors to offer scalable and comprehensive contracting service solutions as a one-stop shop, and back it up with effective qualiﬁed manpower for project design, installation and service support,”

www.constructionweekonline.com

MARKET ANALYSIS costs, weaker ﬁnancial background and lack of regional presence, track record and technical expertise. Only the top MEP service providers are currently providing training for their employees, either in-house or onsite. Some are sending them to institutions to become qualiﬁed, and then reabsorbing these employees.

What is the future outlook for smaller MEP companies? The smaller MEP companies with strong technical capabilities and a local presence are trying to establish themselves through a tie-up (either JV or acquisition) with top companies (either MEP service providers or with developers with an in-house MEP division) having a presence in all six GCC countries, or at least with companies having a presence in the top three potential countries, so as to expand themselves regionally. These smaller MEP companies will normally end up doing a limited number of projects either through sub-contracting or self-performed. There is a chance that these companies will sometimes end up not doing any projects in a year; some might close

down after a year. These companies generally have a proﬁt margin in the range of 5% to 7%, depending on the economic conditions of the country and the type of projects they get involved in.

You state that ‘contractors are continuously upgrading their services’. This implies a new focus on quality, customer service and value addition? Yes, in order to cope with the growing development of next generation/green buildings, huge iconic or sophisticated projects, island projects and multi-tenant/mixed-use developments, MEP contractors are upgrading their services continuously by investing in in-house pre-fabrication, design and service capabilities. The increasing focus on next-generation developments is mainly due to the need to be cost-competitive due to energy-efﬁciency and environmental sustainability factors, and also to enhance the market dynamics.

What is the forecast in terms of material and labour costs? Due to the rise in construction commodity

prices and labour costs, we expect the direct material cost to go higher in future. Also, the cost of direct labour will increase in the future due to rising staff accommodation costs. Finally, net proﬁt margins are likely to decline further, placing added pressure on contractors going forward. All material prices related to construction are an important end consideration in terms of proﬁt margins.

Technologies such as BIM are becoming more important? BIM software currently does not play a major role in the sustainability of MEP services in the construction sector in the GCC, as the construction industry still has a long way to reach such a high level of technical proﬁciency. It is dismaying to note that everything concerning MEP design has been done manually in 2D to date, especially in a region like the UAE, where there are massive and incredible projects taking place. BIM software will allow MEP engineers to slash overall project costs, speed up the design process and improve build quality by reducing mistakes. The usage of BIM is not under the scope of the study.

Turnkey Hot Water & Steam Systems

Electric

Boiler

Steam

Solar

Hot water & steam systems Energy & space saving

Skid mounted units Hygienic hot water

Specification support Compact design

Leading-edge construction High-quality stainless steel

SHERATON HOTEL, HONG KONG

BURJ TOWER, DUBAI

GRAND HYATT HOTEL, DOHA

SHORELINE APARTMENTS, DUBAI

_ 782 rooms, ballrooms & meeting spaces, restaurants & lounges, cafes & bars _ Electric hot water system 800 kW, 4x 2500 litres _ Heat pumps, 4x 350 kW _Electric steam boilers, 2x 1800 kg/h, 10bar

_ Armani Hotel, residences, offices 71000 litres/hour hygienic hot water at 60 °C _ Gas condensing boilers & skid mounted heat exchanger packages, 11x 300 kW

_ 249 rooms & 93 villas, 39000 litres/hour hygienic hot water at 60 °C _ Steam boilers, 3x 4000 kg/h, 11 bar _ Stainless steel high capacity water heaters, 6x 450 kW, 6600 litres/hour at 60 °C

_ 6 buildings, each with 156 apartments, 10000 litres/hour hygienic hot water at 60 °C _ 200 m² solar panel area, solar gain 80 % _ Gas condensing boilers for back-up heating 2x 80 kW _ Stainless steel calorifiers, 3x 4000 litres

ECOTHERM Middle East P.O. Box 299350 Dubai - U.A.E

www.constructionweekonline.com

Tel. +97144226944 Fax. +97144226943 info@ecotherm.com

www.ecotherm.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

The Abu Dhabi Pipe Factory LLC (ADPF) was established in 1981 in technical collaboration with Cord International of France. It is a leading manufacturer of glass-reinforced plastic (GRP) pipes and fittings in the Gulf. It uses dual helical filament winding for core pipes from 25 mm to 2 000 mm, and continuous filament winding for jacket pipes from 250 mm to 3 200 mm. The factory has a total area of 150 000 m², of which the production area is 40 000 m² (Abu Dhabi and Dubai combined). The production capacity is 50 000 tons of pipes and fittings a year. It has a combined total of nine production lines for dual helical winding and four for continuous winding. ADPF pre-insulated GRP pipes are used widely in piping networks for district cooling systems. A pre-insulated GRP pipe consists of a core pipe, also called a carrier pipe, and a jacket pipe, also called a casing pipe, with polyurethane foam in the annular space between the pipes. Insulation provides the primary thermal resistance against heat gain in chilled water systems. Normally two pipes are laid in parallel in the same trench to serve as a separate supply and return.

Borouge is a leading provider of innovative plastics solutions. Established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC) and Borealis, a leading European plastics provider, Borouge employs Borstar technology for end-use plastics applications throughout the Middle East, the AsiaPaciﬁc and Africa. Its petchem complex is located at Ruwais in Abu Dhabi, with a multi-billion dollar expansion due to commence production this year. This will effectively triple existing production capacity to two million tons a year, including – for the ﬁrst time – polypropylene. Borouge

30 MEP Middle East | April 2010

700

Failures a day in the US in ageing water-distribution systems

provides a range of differentiated products for high-value infrastructure applications, including water, gas and industrial pipe systems and power and communications cables.

CORYS-HEPWORTH PME LLC Hepworth PME LLC is the Middle East’s premier manufacturer and supplier of a range of high-quality plastic pipes, fittings and accessories used for the distribution and transmission of water, wastewater and gas. Corys is the holding company. Distributed in Dubai for over 35 years, all products are represented by a chain of offices throughout the area. Hepworth products conform to the highest of international standards used in the region. Its substantial stockholding ensures it is able to consistently satisfy the requirements of the industry. Hepworth PME offers a range of PVC-U pressure pipes and non-pressure pipes and fittings, PVC and ABS fittings and PP, PP-R, ABS and PE pipes in imperial and metric sizes. Its engineered fittings have been installed on sewerage, water supply, irrigation, fire mains, soil and waste contracts throughout the Middle East. Grease traps, end caps, land drain slotted pipes, long radius bends for street lighting www.constructionweekonline.com

PIPES bends, road gulleys, catch basins and sealed dry manholes are just some of the fabricated products from Hepworth PME. In March 2009, Hepworth PME entered into a joint venture with George Fischer, a global corporation across 130 companies worldwide with 50 production sites (80 companies are based in Europe, 35 in Asia and the Middle East, 12 in America and two in Australia.) The company’s core competency is piping systems, plastic and metal fittings, valves and shut-offs for water, gas and other liquids. Another recent joint venture is with MDS Meyer GmbH, a German specialist in the production of rubber seals and gaskets. The new company formed under this agreement, Corys MDS LLC, will produce a range of MDS branded rubber gaskets in Dubai. This latest step in the group’s growth will help reduce the high costs of importation and the attendant delays in transportation. It will also help expand its customer base worldwide. Corys has manufacturing units in Rashidiya in Dubai, Dubai Investment Park and Qatar, as well as fabrication workshops in Sharjah and Abu Dhabi. A new unit is due to open in 2010 that will double the production capacity to accommodate expansion within the UAE and other export markets. Corys employs over 800 staff across all its sites, and offers its customers a range of more than 25 000 products. A fleet of over 50 vehicles permits site delivery within an efficient timeframe. Production is achieved with the use of European equipment of the highest quality from suppliers such as KraussMeffai, Battenfeld, Weber and Engel, and raw material from suppliers such as Borouge and Sabic. Hepworth PME is an industry leader in installing and integrating the Oracle ERP (Enterprise Resource Planning) system. This automated system allows supply chain excellence, real-time management and communication, and gives Corys a major administrative advantage. Recently recertified for ISO 9000, Hepworth PME has worked on iconic projects such as The Palm Jumeirah, Burj Khalifa, Burj Al Arab and Atlantis, and is one of only three approved suppliers to Dubai Municipality. It is aiming for ISO 14000 in environment management.

DUBAI PIPE FACTORY Established in 2001, the Dubai Pipe Factory Company LLC (DPF) is located on a 150 000 m² facility in the Jebel Ali Industrial Area, of which 5 000 m² comprise manufacturing and testing facilities, in addition to storage areas for glass and resin and other consumables. It employs the continuous ﬁlament winding process to manufacture a range of GRP pipes, tanks, manholes, ﬁttings and accessories. www.constructionweekonline.com

US$36 BILLION

The yearly cost of corrosion on the water and sewerage system in the US

DPF is part of the Amiantit group, a leading manufacturer of pipe systems. The group’s pipe systems division comprises almost 30 wholly-owned, majority-owned or joint-venture manufacturing facilities in 18 countries. Using the latest technologies, pipes are produced in a wide variety of materials such as glass reinforced plastic (GRP), glass reinforced epoxy (GRE), thermoplastic (HDPE, PVC and PP), concrete, polymer concrete and ductile iron. International brands include AmPlas, Amipol, Amipox, Flowtite, Meyer Polycrete, Speedmark, C-Tech, AmiGrip and Vectus. The comprehensive range of Amiantit products includes pipes and accessories for water, sewage, hydro-power, gas, oil services, construction, engineering, municipal, industrial, agricultural and marine applications.

ELIPS The UAE’s largest pre-insulated pipe manufacturing facility, Empower-Logstor Insulated Pipes Systems (ELIPS), was launched officially in Jebel Ali recently by HRH the Crown Prince of Denmark Frederik Andre Henrik Christian and HH Sheikh Mansoor Bin Mohammed Bin Rashid Al Maktoum. ELIPS is a joint venture (JV) between Emirates Central Cooling Systems Corporation (Empower), a leading district cooling company in the UAE, and Logstor, the world’s largest manufacturer of pre-insulated pipes. The US$25 million facility will cater to the requirements of the district cooling and oil and gas sectors across the Middle East. ELIPS will ensure high quality of insulation and casing of pipes, enhancing efficiency and maintenance costs of district cooling services. It will also ensure price control by improving supply chain and eliminating artificial price fluctuations created by various players due to the demand-supply gap, added Bin Shafar. Logstor has been serving the Gulf region since 1992, and is now marking its commitment to serve the region by establishing an anchored presence with the ELIPS factory. Depending on dimensions and output from 100 to 300 pipe joints a day, the factory will offer job opportunities for a wide range of competences,

from operators to highly-skilled engineers. ELIPS will use spray technology for manufacturing large-diameter pre-insulated pipes, which will ensure high-quality products and also result in savings in raw material costs as compared to traditional injection technology. This technology also enables the JV to enter the oil and gas industry, which is not possible with traditional injections. Currently, only one out of ﬁve existing pre-insulated pipe manufacturers are using spray technology.

FUTURE PIPE INDUSTRIES The Future Pipe Industries group (FPI) is a global leader in large-diameter fibreglass pipes, developing, manufacturing and supplying systems in over 50 countries. Headquartered in Dubai, it comprises ten factories and a global network of sales offices across four continents, serving customers and end users in a variety of sectors, including, oil and gas, infrastructure and municipal, water distribution, desalination and power, petchem and industrial. FPI was established in 1984 when Fouad Makhzoumi acquired a stake in Gulf Eternit Industries, the first company in the group. As a manufacturer of a comprehensive portfolio of fibreglass pipe systems, FPI has successfully promoted fibreglass as a substitute for pipe systems based on traditional materials. Polyester and vinylester based fibreglass reinforced composites (GRP/GRV) offer excellent performance in terms of corrosion resistance and resistance to loads (buried installations) in high pressure and high temperature applications. GRP pips have been used extensively in the desalination and power industries (salt water systems, intake and discharge/ outfall, cooling water systems, flue gas desulphurization and utility piping), water distribution and municipal/infrastructure applications (storm and surface drainage, sewer and district cooling and heating.)

SAUDI PIPE SYSTEMS Saudi Pipe Systems Company is based in Jeddah in Saudi Arabia, and manufactures valves, cast iron and ductile iron fittings, GRP and HDPE pipes and pre-insulated pipes and fittings. PE100, considered the most heavy-duty among polyethylene pipes, is ideal for water and gas mains due to its maximum working pressure. It has enhanced toughness, higher permissible design strength and improved resistance to crack propagation. High-density polyethylene pipes (HDPE) offer the water engineer substantial benefits in performance. PE100 pipes are used in various applications, including sewage pumping mains, fire mains and chilled water. Pipes are manufactured in diameters from 25 mm to 3 000 mm. April 2010 | MEP Middle East 31

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 landmark accomplishment for NAPCO. This is further rewarding by virtue of NAPCO being the first and only company in the region to have its complete range of HVAC adhesives, coatings and sealants UL certified. A UK-based company with a manufacturing unit in the United Arab Emirates, NAPCO Middle East Ltd. is

the region’s leading manufacturer of HVAC adhesives, coatings and sealants for over 15 years, with projects that span across the Middle East, Africa and Asia. In today’s world of increasing demand for quality and safe products, NAPCO is working with its clients and internationally reputed laboratories to not only to meet 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’ commercial ofﬁces with the latest commercial technology, facilities, conveniences and retail shops to create an optimal business environment.

Salam 4 in Lusail City

Project Title

Client

Consultant

Main Contractor

MEP Contractor

Value (US$. Mn)

Project Status

Type of Project

Model School at Najma - School No: 23

Public Works Authority

In House

Inshaa Contracting Company

Not Appointed

project under construction

Educational Facilities

Al Emadi Twin Towers

Mr. Mohammed Esmail Al Emadi

Arab Consulting Engineers

Not Appointed

101 - 250

project under design

Commercial Buildings

Residential Building in Fox Hills

Buzwair Real Estate/QDREIC

Faim Design

Not Appointed

2.5 - 15

project under design

Residential Buildings

Apartment Building at Al Sadd

Mr. Nasser Abdul Aziz Nasser Al Nasser

Consulting Engineering Group

Not Appointed

16 - 30

award awaited for the main contract

Residential Buildings

Labour Accommodation at Wakrah - Phase 2

Public Works Authority

Al Aqsa Consulting & Engineers

Ramco Engineering

Not Appointed

project under construction

Residential Buildings

Ofﬁce/Residential Building at Najma

Mr. Abdul Jaleel Abdul Ghani Nasser

Consulting Engineering Group

Not appointed

Not Appointed

award awaited for the main contract

Mixed Use

Hotel & Ofﬁce Buildings at Al Rayyan Road

Mr. Abdul Rahman Al Mufta

South West Architecture

Al Mufta Contracting

Not Appointed

16 - 30

project under construction

Mixed Use

Al Dar Hotel

Mr. Mohammed Al Majed

Al Jazeera Engineering / EGEC

Not Appointed

16 - 30

project under design

Hotel

The Regent Doha

Ghanem Al Thani Holding

KEO International

Not Appointed

101 - 250

award awaited for the main contract

Hotel

Corporate Building for Energy City Qatar

Energy City Qatar

ABS

Not Appointed

101 - 250

award awaited for the main contract

Commercial Buildings

4 Ofﬁce Towers in Marina District of Lusail

Salam International/QDREIC

M.Z. & Partners

Not Appointed

275

project under design

Commercial Buildings

Shopping Mall in Abu Nakhla area

Al Meera Consumer Goods Company

Consulting Engineering Group

Noors Engineering Company

Not Appointed

project under construction

Shopping Centre

Entertainment District Precinct A & B

ADIH/Majid Al Futtaim/QDREIC

RTKL/Forrec

Not Appointed

1,500

project under design

Mixed Use

Community College in Dukhan

Qatar Petroleum

Technital Qatar

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

Cash Buyer Cash Seller & Settlement Cash Mean 3-months Buyer 3-months Seller 3-months Mean 15-months Buyer 15-months Seller 15-months Mean 27-months Buyer 27-months Seller 27-months Mean

Primary Aluminium (dollars)

Aluminium Alloy (dollars)

Copper

Lead

Nickel

NASAAC

(dollars)

2,048.23 2,048.93 2,048.58 2,079.10 2,079.95 2,079.53 2,172.20 2,177.20 2,174.70 2,246.80 2,251.80 2,249.30

1,885.03 1,892.93 1,888.98 1,913.00 1,923.25 1,918.13 2,019.75 2,029.75 2,024.75 2,102.25 2,112.25 2,107.25

6,847.20 6,848.18 6,847.69 6,870.30 6,872.45 6,871.38 6,876.50 6,886.50 6,881.50 6,810.25 6,820.25 6,815.25

2,121.23 2,123.68 2,122.45 2,139.93 2,142.20 2,141.06 2,140.45 2,145.45 2,142.95 2,107.45 2,112.45 2,109.95

18,964.75 18,976.00 18,970.38 19,034.00 19,052.00 19,043.00 18,983.00 19,083.00 19,033.00 18,701.00 18,801.00 18,751.00

1,978.98 1,988.50 1,983.74 2,008.25 2,018.75 2,013.50 2,112.25 2,122.25 2,117.25 2,185.25 2,195.25 2,190.25

THE FOLLOWING STERLING EQUIVALENTS HAVE BEEN CALCULATED, ON THE BASIS OF DAILY CONVERSIONS: Copper Cash Seller & Settlement: Copper 3-months Seller: Lead Cash Seller & Settlement: Lead 3-months Seller:

£4,385.77 £4,539.08 £1,360.13 £1,372.84

Settlement Conversion Exchange Rates Stg/$ $/JY Euro

1.5621 90.23 1.3687

$6825 Copper 3-months seller

LME AVERAGE SETTLEMENT PRICES IN EURO Metal

Euro Settlement Conversion Rate

Primary Aluminium

1,497.12

Aluminium Alloy

1,383.15

Copper

5,004.76

Lead

1,552.13

Nickel

13,871.06

Nasaac

1,452.98

JANUARY 2010 THE LONDON METAL EXCHANGE LIMITED AVERAGE OFFICIAL AND SETTLEMENT PRICES US$/TONNE

Cash Buyer Cash Seller & Settlement Cash Mean 3-months Buyer 3-months Seller 3-months Mean 15-months Buyer 15-months Seller 15-months Mean 27-months Buyer 27-months Seller 27-months Mean

Primary Aluminium (dollars)

Aluminium Alloy (dollars)

Copper

Lead

Nickel

NASAAC

(dollars)

2,234.53 2,235.15 2,234.84 2,265.95 2,266.65 2,266.30 2,359.95 2,364.95 2,362.45 2,428.75 2,433.75 2,431.25

1,955.98 1,965.35 1,960.66 1,985.25 1,996.25 1,990.75 2,095.75 2,105.75 2,100.75 2,178.25 2,188.25 2,183.25

7,384.98 7,386.25 7,385.61 7,409.68 7,412.03 7,410.85 7,403.25 7,413.25 7,408.25 7,342.00 7,352.00 7,347.00

2,367.03 2,368.38 2,367.70 2,390.28 2,393.25 2,391.76 2,398.75 2,403.75 2,401.25 2,385.05 2,390.05 2,387.55

18,430.00 18,439.25 18,434.63 18,477.50 18,500.00 18,488.75 18,524.75 18,624.75 18,574.75 18,429.50 18,529.50 18,479.50

2,063.20 2,072.20 2,067.70 2,095.00 2,106.80 2,100.90 2,202.50 2,212.50 2,207.50 2,273.75 2,283.75 2,278.75

£4,569.57 £4,588.35 £1,465.36 £1,481.67

Settlement Conversion Exchange Rates Stg/$ $/JY Euro

1.6165 91.30 1.4277

$7165 Copper 3-months seller

LME AVERAGE SETTLEMENT PRICES IN EURO Metal

Euro Settlement Conversion Rate

Primary Aluminium

1,565.37

Aluminium Alloy

1376.79

Copper

5,173.20

Lead

1657.98

Nickel

12,918.19

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

PRE-WIRED OFFICE FURNITURE Cable-management specialist Marshall-Tufflex has launched a new range of pre-wired office furniture desk units as part of its underfloor to desk solutions range. The units provide a neat, safe and stylish method of delivering power to desktop devices such as computers and printers, replacing messy and potentially dangerous trailing power cables. Power can be delivered directly from MarshallTufflex’s MT32 plug-and-play 32A power distribution system or via its Series 507 or any other powertrack system. The system is fully segregated with Clean Earth (CE) and standard versions available,

together with optional MCBs and RCD protection. The desk units comply with BS 6396 for Electrical Systems in Office Furniture and with BS 1363-2, where applicable. Colour-coding indicates red for 3.15A and yellow for 5A. The desk units are also compatible with a range of prefabricated wiring systems using standard 16A connectors and compact 32A connectors. Units are supplied as standard in black ABS and aluminium. However, aluminium units required with a silver-grey anodised finish are also available by contacting MarshallTufflex’s technical team.

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 supplied in addition to primary control as standard. Other features include a waterlevel sight glass, main on-off switch, steam stop-valve and long-life heating elements, as well as industrialgrade, heavy-duty 0.42 inch diameter stainless steel sheath heating elements with one-piece resistance-welded terminations for added life and security. www.sussmanboilers.com

www.marshall-tufﬂex.com

UTILITY MANHOLE COVER LIFTER General Machine Products Company Inc. of the US has introduced a utility manhole cover lifter to its range of safety tools and equipment. The lifter allows an individual to lift and remove heavy utility manhole covers quickly and safely in a variety of work environments and applications. The tool securely attaches to and raises the most stubborn covers – with the lifter doing all the heavy work, instead of the technician’s back. One lifter can work on a wide range of cover types, as each lifting hook attachment (or key) is designed to accommodate a broad selection of manhole covers. The long handle of the lifter provides the precise leverage necessary to easily raise bulky manhole covers. The lifting process is simple. First, select the appropriate lifting key for the

36 MEP Middle East | April 2010

cover to be removed. Insert the key into the cover’s hole or lifting pocket. Next, brace the lifter’s foot with one of your own feet while having the handle pointing away from you. Then pull the lifter’s handle backward toward you. Keep moving the foot of the lifter back to change the angle and allow for additional pulls of the handle to clear the manhole cover from its frame. Added design features include rubber hand grips and a spiked foot for secure traction on unstable ground surfaces. In addition, the lifter’s durable, plated-steel tubular body is engineered speciﬁcally to lift the heaviest utility manhole covers. The company offers several key options, including a small J-hook, a large J-hook and a heavy L-hook. All keys are made of heat-treated steel for added strength and durability. While

stock keys can accommodate the majority of utility cover types in use worldwide today, the company wcan also engineer custom key designs to ﬁt unique applications. www.GMPtools.com

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

www.swegon.com

Bassel Anbari, InterCool Mobile: +971 50 667 0527 E-mail: Bassel@intercool.ae

SwegonSolutions

PRODUCTS

The V-Cone steam ﬂow meter from McCrometer

REDUCING PIPING INFRASTRUCTURE The V-Cone steam flow meter from McCrometer delivers accurate steam-flow measurement in a space-saving design ideal for district energy facilities. According to McCrometer, the V-Cone eliminates many of the common equipment lay-out problems associated with steam processes in HVAC systems and electric power co-generation systems. It is designed for steam process lines connecting boilers with HVAC systems or cogeneration energy systems. At the same time, the self-conditioning flow design of the V-Cone eliminates most of the straight-pipe requirements typically needed with many flow meter technologies by controlling swirl and other flow disturbances in the pipe that affect measurement accuracy.

The company claims that the V-Cone is accurate to +0.5%, with a repeatability of +0.1%, and requires only 0-3 straight diameters upstream and 0-1 diameters downstream from the meter. Many other types of flow meters require as many as 10 pipe straight diameters upstream and five pipe diameters downstream from the meter. With space constraints an increasing issue in modern building, the V-Cone typically reduces real estate, piping material, associated pipe support structure and installation labour by 50% or more. With the V-Cone, larger line sizes mean larger savings. The V-Cone flow meter features built in flowconditioning and advanced differential pressure (DP) technologies. Operating over a wide flow range, it

MULTI-FUNCTIONAL OVERHEAD SHOWER The Raindance Rainmaker AIR from Hansgrohe, with its 680 mm shower head and ﬂushceiling mounting, adds a new dimension to sanitaryware. Now a new rectangular option has been launched to complement bathrooms designed along geometric lines. Its spray surface accounts for almost the entire area of the 680 mm by 460 mm ceiling element. The central part of the unit, with a diameter of about 240 mm, can also be used on its own. When required, the two outer segments can be added to the stream as well. The wide-spreading spray enhances its functionality, preventing contact with the cold outside air. Three downward-projecting conical whirl jets can be added to the stream as required to provide a powerful and relaxing massage effect. This multi-functional overhead shower system again employs the innovative AirPower 38 MEP Middle East | April 2010

technology, which draws in air to enrich the water, thus producing a voluminous rain instead of the needle-like jets experienced in conventional showers. www.hansgrohe.com

The Raindance Rainmaker AIR from Hansgrohe

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 flowconditioning 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 difference that is exhibited between the static line pressure and the low pressure created downstream of the cone. One tap is placed slightly upstream of the cone and the other is located in the downstream face of the cone itself. The pressure difference can then be incorporated into a derivation of the Bernoulli equation to determine the fluid flow rate. The velocity of the liquid flow at the point of measurement is optimised by the central position of the cone in the line. It forms very short vortices as the flow passes the cone. These short vortices create a low-amplitude, high-frequency signal for good signal stability. The result is a highly stable flow profile that is repeatable for continuously accurate flow measurement. McCrometer is a leading global flow instrumentation specialist focusing on the design, manufacture, installation and testing of flow metering solutions. Its MENA office is located in Jebel Ali. www.mccrometer.com

THREE-PHASE HVAC COMPRESSOR SOFT STARTERS Carlo Gavazzi Automation has launched its RSBT series, a three-phase soft-starting solution that optimises current reduction for HVAC (scroll) compressors, mainly used in heat pumps. The RSBT series is equipped with a patent-pending auto-adaptive algorithm that reduces energy consumption each time the compressor starts by self-adjusting appropriate parameters. In this manner it limits current inrush up to 65%, compared to direct-on-line starting. The RSBT series is compliant with Class B (residential) requirements for emissions, does not need any external settings and is provided with a compact housing (45 mm). It also provides phase sequence and imbalance protection. www.GavazziOnline.com www.constructionweekonline.com

THE LAST WORD

GREEN PARAGON

Swegon business development director Carl Tobisson talks about going green.

To what extent does the green performance of a building influence the purchase decision? The launch of Sheikh Mohammed’s green building initiative at the end of 2007 was the first step towards changing the criteria so that people pay more attention to energy-efficient and green building solutions. Such solutions are on their way to being at the forefront of people’s minds. There is a slow move away from building fast, cheap and then selling. How should developers take an interest in the lifespan of a building? There must be some kind of education. There are two types of investors, namely owners and speculators. Owners are going to pay the bills for energy, water and so on. The problem is with speculative buyers. When somebody else is paying the bills, it is not so easy. We must remember that, if you have a LEED-certified building, you can get more money out of it, which remains an advantage, even for speculative investors. How have you encouraged clients to pay the premium for green building? We are showing our customers that you have to look at the long-term costs. You have the investment cost, the running cost and the maintenance cost. The running and maintenance costs stay with the building its entire lifespan. What we are trying to indicate is that you have to look at the pointers – not only at investment, but the life-cycle cost. Has the construction industry lost the will to go green in the face of the economic climate? The recession could help in some 40 MEP Middle East | April 2010

ways. People will be more discerning. Before, everybody could build and sell. But now the market should be more stable, as opposed to people simply looking to build fast and sell. That’s why Sheikh Mohammed’s green proclamation was a big step. Someone has to take the lead, or practical steps will never be taken. What health benefits are to be gained from using Swegon in hotels? The first thing that comes to my mind would be the silent cooling. When most people stay in hotel rooms, they can hear the fan coil unit (FCU) operating. And also there is the draught element that can keep people awake. Those are two key areas that need to be addressed. The other one would be the risk of bacterial growth. Our system operates above the dew point, whereas other systems operate below the dew point. This means you need to have a tray under the FCU, and you need to lead the water away. As it is a wet system and there is dust present in the room, you need to clean this unit carefully. Bacterial growth is one area where there is a definite higher risk. What our system does is, first of all, with the Gold handling unit, it has filters that obviously filter and dehumidify the air. So the system supplies primary air that is filtered. This is not a problem if you require a normal supply of air. Also, you need to have the right amount of air exchanged. In addition, you have emissions from carpets and walls, for example, and this is dealt with by the extract air and ventilation. We would never recommend switching a system off completely and not having exchange of air in the room.

Swegon business development director Carl Tobisson

How important is indoor air quality? That is a good question. I think that, to a certain extent, say up until two years’ ago, the hotel industry has focused on the façade and external aesthetics, with cost-cutting on things inside that people cannot really see. But now in the UAE and the region as a whole, people are looking at reducing the total amount of energy consumed by their buildings. A total of 40% of energy is consumed by buildings. This is because people acknowledge that the well-being of people is of the utmost importance. What challenges are you facing? First of all, the economy needs to start picking up again. The biggest hurdle would be that lots and lots of consultants and property owners in this region like to use traditional systems. So in order to get your products into these new buildings, you have to be patient. You need to be able to show people the system already installed in existing buildings. Above all, you have to be persistent. Can you retrofit your products? We have not looked very much at that, but obviously this is an opportunity as well. The Paragon product is very new, and is part of our aim to target not only new developments, but existing ones as well.

We are very much trying to meet the needs of the builders. What is Paragon? This is a new induction cooling unit for the hotel industry unveiled by Swegon at The Big 5 last year. The product has just been launched in the UAE market. Swegon has already secured a 300-room contract for an airport hotel in Oslo. Unlike a traditional FCU, Paragon has no need for ﬁlters or drainage, so there is no risk of bacterial growth. Another advantage is that Paragon is available as a standard modular unit, with all the necessary actuators and valves premounted. This results in a signiﬁcant overall saving in installation costs. The small size of the unit, which is only 180 mm high, means that the false ceiling space can be reduced dramatically as well. Paragon has other unique features: air distribution is parallel with the ceiling, which means it can be placed at the rear of a room; adjustable supply air grilles direct the air vertically; an anti-draught function controls horizontal diffusion or air direction; and the enclosed unit means that the recirculated air never comes into contact with the space above the false ceiling, further enhancing indoor air quality. www.constructionweekonline.com

Delivering MEP construction excellence Providing MEP specialist construction to the building industry since 1976 Al Habtoor â&#x20AC;&#x201C; Specon LLC has successfully delivered a number of prestigious projects throughout the UAE and Qatar. Our team of highly qualified engineers and key management personnel bring vast knowledge and experience in MEP Construction, Design, Supervision, Service and Maintenance.

AL HABTOOR - SPECON LLC MEP Specialist Construction

We have successfully delivered MEP multi-disciplined projects for both the public and private sector, including hotels, airports, hospitals, sports facilities and residential towers. We pride ourselves in providing clients with timely execution, high quality, competitiveness and excellent after-completion service.

P.O. Box 87134 Dubai, UAE Tel: +971 4 294 0420 Fax: +971 4 295 3856

P.O. Box 26923 Abu Dhabi, UAE Tel: +971 2 626 2036 Fax: +971 2 626 3073

P.O. Box 22478 Doha, Qatar Tel: +974 413 0044 Fax: +974 413 0055

36D Grivas Digenis Ave. 1066 Nicosia,Cyprus Tel: +357 22 66 2775 Fax: +357 22 66 2871

97 El. Venizelou Ave. P.O. Box 139 17123 Athens, Greece Tel: +30 210 931 1440 Fax: +30 210 931 1441