Peikko Gulf undertakes Ras Al Khaimah facility expansion to boost manufacturing for construction sector
Ras Al Khaimah, 28 March 2024: International supplier of building materials, Peikko Gulf expanded its Ras Al Khaimah facility to boost its manufacturing capabilities by around 40%. With the facility now spanning nearly 23,000 m2 and new machinery added to its existing fleet, the company will serve the growing market needs and take on larger projects in the region.
Peikko Gulf is a subsidiary of Finland-based Peikko Group which was established in 1965, catering to 33 countries globally. The Al Hamra, Ras Al Khaimah manufacturing unit was set up in 2010 to produce precast connections and DELTABEAM® for the GCC, Middle Eastern, African, and Indian markets.
Global Data’s recent analysis indicates that the UAE’s construction market was valued at USD 94 billion in 2023 and is expected to grow at an annual average growth rate of over 3% from 2025 to 2028, reaching a projected value of more than USD 133 billion by 2027. This optimistic outlook for the UAE’s construction industry suggests that suppliers and manufacturers of building materials, such as Peikko, are likely to see an increase in demand, opening up further opportunities for growth.
Topi Paananen, entrepreneur and CEO of Peikko Group, said, “This expansion is a significant milestone for us. It’s driven by our commitment to innovation and serving our customers on larger projects. Ras Al Khaimah’s strategic location has been instrumental in our success, allowing us to effectively reach our target markets across the GCC, Middle East, Africa, and beyond. Peikko is poised to continue its growth trajectory, responding proactively to the evolving needs of the construction industry, with RAKEZ’s continuous cooperation and support in facilitating business growth.”
Ramy Jallad, RAKEZ Group CEO, said, “We are thrilled to see Peikko Gulf expand their operations with us. Their growth is demonstrative of the advantages Ras Al Khaimah offers to the manufacturers and suppliers of building materials in the midst of the region’s booming construction sector. The increasing real estate projects across the Gulf and beyond underscore the rise in demand for innovative and efficient building solutions, which Peikko Gulf is well-positioned to cater to. RAKEZ is committed to ensuring continued support for Peikko and all construction players in our business community, so they not only meet the demands of this vibrant sector but also thrive and expand their global footprint.”
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