As part of its international growth, ARC International, a worldwide market leader in tableware, has acquired a majority stake in RAK Glass, which is located in the emirate of Ras Al Khaimah, one of th…
As part of its international growth, ARC International, a worldwide market leader in tableware, has acquired a majority stake in RAK Glass, which is located in the emirate of Ras Al Khaimah, one of the seven United Arab Emirates. Specializing in sanitary ceramics and tiles, the RAK Ceramics group wished to benefit from synergies between glass and ceramics and set up a glass manufacturing company which started opal glass production in 1998 and clear glass production in 2000. Keen to be on the leading edge in terms of technology the group then decided to focus on its ceramics activities and to sell its glass activities, enabling ARC International to purchase 80% of the capital of RAK Glass. The RAK Glass plant has two furnaces for opal and clear glass. Located in a area of high development potential, the company counts among its assets: a skilled staff, a commercial presence in many countries, a strong position in its markets, a significant customer portfolio in countries where it is not present, and a commitment to quality and customer satisfaction. By establishing in this emirate, ARC International enters a strategic catchment area which represents a market of more than 300 million customers (without the Indian subcontinent). It also allows ARC International to improve its distribution control and to supply a wide range of products into a market to which it has had only limited access to date due to high distribution fees and customs duties. RAK Glass customer portfolios contain some significant players in markets in which ARC International is not yet operating. With certain production costs in line with the current price levels in the area, ARC International has the opportunity to cover the needs of the local market as a whole. The benefits in terms of productivity and new markets represent the engine for growth for ARC International which will allow it to ensure the continuity of its activity in its western plants.