Four Seasons Hotel, Bahrain, a project Reynaers ME was involved with

Four Seasons Hotel, Bahrain, a project Reynaers ME was involved with

Reynaers grows despite headwinds

The company is very much part of the regional construction scene and has made strong gains over the years

February 2016

Aluminium systems provider Reynaers Middle East has continued to grow despite difficult economic conditions, says a top official.

Ali Khalaf, managing director, revealed: “Our 2015 turnover was €13.53 million ($14.74 million), 23 per cent higher than in 2014.”

Driving growth over the years is the work Reynaers ME gets from iconic projects in the region. In 2015, it supplied systems to the Four Seasons Hotel at Bahrain Bay, and worked on the Marina Residence and Sparkle Tower in the UAE.

Another force driving growth is constant innovation of the company’s portfolio; it has consistently grown and improved on its portfolio of products and systems in order to stay ahead of the competition.

The company introduced the Purity handle to the region at the end of 2014, a product designed by Italian designers exclusively for Reynaers. Crafted out of a brand new alloy called Pura, Reynaers says these high-end handles are hypoallergenic, very hard wearing and will need only the lightest cleaning to keep their lustre.

In 2015, Reynaers ME came out with the Hi-Finity range, a stylish, new sliding door range with an ultra-slim profile system which allows uninterrupted panoramas. This ultra-luxury product has been well received in the market, with Reynaers ME selling 30 systems in Jordan, Lebanon, Bahrain, UAE and Saudi Arabia.

Reynaers started 2016 by introducing its newest aluminium window system, Masterline 8, in early January. Khalaf revealed that this next generation hinge system offers better performance, higher insulation and a competitive price, by reducing fabrication time by 30 per cent.

The company’s most profitable product is the Curtain Wall system, CW50, which accounts for 50 per cent of its turnover due to its popularity with high-rise towers. Khalaf remarked that this product underwent improvements in 2015, and will be innovated on again in 2016.

Commenting on the fall in oil prices and their consequences, Khalaf said: “We have a large number of projects in the pipeline for 2016, and our budget is even higher than in 2015, predicting 16 per cent growth. But, we will have to expand in different sectors and countries in order to meet targets.”

Reynaers ME has come up with an entirely new business model for Saudi Arabia. The company has set up a small fabrication facility and a warehouse in Dammam, and will be targeting the high-end residential market in the country. “Our partners are focused on large projects such as towers and commercial buildings and we find this sector to be under-serviced. We are aiming to create a niche in this market,” Khalaf explained.

Despite the challenges, a Bain study commissioned by Reynaers Belgium categorised the Middle East as a ‘Fast Growing Market’. The target for Reynaers ME is to double its turnover by 2020.

Reynaers ME is tipped to meet this target. The company has already increased its turnover by 40 times since its inception in 2005, and was also able to weather the 2008-09 financial crisis by showing positive results.

Reynaers is currently supplied by extruders in Saudi Arabia and the UAE and plans to establish a partnership with an extruder in Egypt this year. The Egypt move could help it tap into the North African market, says Khalaf.

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