Peikko Gulf To Expand Its RAK Facility To Boost Manufacturing Capabilities
Peikko Gulf, the international supplier of building materials, has recently announced the expansion of its Ras Al Khaimah facility, marking a significant step towards enhancing its manufacturing capabilities by approximately 40%. This upgrade includes the addition of new machinery to its fleet and an expansion of the facility's footprint to nearly 23,000 m2. The move is aimed at catering to the increasing demand in the construction sector and enabling the company to undertake larger projects across the region.
Established in 1965, Peikko Group, the parent company of Peikko Gulf, has a global presence serving 33 countries. The Ras Al Khaimah unit, located in Al Hamra, was initiated in 2010. It specialises in producing precast connections and DELTABEAM® for the markets in the GCC, Middle East, Africa, and India. This expansion further solidifies Peikko Gulf's commitment to innovation and its capacity to serve a broader market base.
Recent analysis by Global Data highlights the UAE's construction market's value at USD 94 billion in 2023, with an expected growth rate of over 3% annually from 2025 to 2028. The projections suggest the market will surpass USD 133 billion by 2027. This optimistic forecast underscores the potential for companies like Peikko to capitalise on the escalating demand for building materials and construction services.
Topi Paananen, CEO of Peikko Group, shared his enthusiasm for the expansion, emphasising the strategic importance of Ras Al Khaimah in the company's success. "This expansion is a significant milestone for us," Paananen stated. He further acknowledged the critical role of RAKEZ in supporting business growth and the company's aim to continue its growth trajectory by meeting the evolving needs of the construction industry.
Ramy Jallad, RAKEZ Group CEO, expressed excitement over Peikko Gulf's growth within the Ras Al Khaimah Economic Zone (RAKEZ). He highlighted the region's booming construction sector and the increasing demand for innovative building solutions. Jallad assured continued support for Peikko and other construction industry players, to help them meet market demands and expand their global presence.
This expansion by Peikko Gulf not only demonstrates the company's commitment to innovation and customer service but also reflects the robust growth prospects of the UAE's construction industry. With the support of RAKEZ and the strategic location of Ras Al Khaimah, Peikko Gulf is well-positioned to meet the rising demands of the construction sector and contribute to the region's development. The company's expansion is a testament to the vibrant economic environment in the UAE and its potential for fostering business growth across various sectors.
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