Moving forward in a competitive environment

Subsidiary of Emirates Investment & Development PSC (Emivest) which is partially owned by the Dubai Government, Duplas Al Sharq has come a long way in terms of product offerings and value-added service propositions. Today, it has achieved a reputation for being a leading technology- based plastic manufacturing company servicing local and international brands.

In a recent interview with International Plastics News - Middle East (IRNE), Eng. Mohammad Nofal, General Manager shared the company's vision, the limitations of the industry and its growth prospects.

IRNE: What are the primary products and services offered by Duplas Al Sharq?

Nofal: Duplas Al Sharq L.L.C is a plastics manufacturing company, engaged in the production of high quality PE, PET, PP, and PC bottles and closures of various sizes, from 200 ml to 25 litres. These bottles are used widely in the lubricant, detergent, shampoo, chemical, edible oil, dairy, juice and water industries, locally and worldwide. Additionally, Duplas has a variety of blow moulding and injection moulding machines, UV printing and in-line labeling equipment.

We cater to a number of industry verticals, locally and abroad. Predominantly, we serve lube oil companies such as ENOC, Shell, Total and ELF. We also supply to local and international brands in the home care, personal care, food applications and beverages industries, such as Reckitt Benckiser (Dettol, Harpic, Vanish) and Al Rawabi.

IRNE: How does the company maintain its competitive edge?

Nofal: Duplas Al Sharq offers a complete customised solution package to its customers. The company is managed by a team of professional and highly skilled technicians who are experienced in the design and production of plastic bottles and products, according to customers' specifications.

We offer competitive prices according to current market trends, superior quality and continuous customer service. Additionally, our extensive logistics network ensures on-time delivery of products enabling clients to maintain a low storage turnaround period.

Duplas Al Sharq is ISO 9001-2000 certified and has implemented the latest ERP system. We deploy state-of-the-art technology to optimise cost of production which we effectively pass on to our customers in addition to an internal Research and Development unit, ensuring on-going product development and innovation.

IRNE: What major challenges has Duplas Al Sharq dealt with in recent times?

Nofal: Price volatility has been a major concern for the plastics industry as we have witnessed unprecedented price hikes in recent times. Between 2009- 2010, there was an average price hike of 30 and 50 percent in HDPE resin and polycarbonate, respectively. Erratic price increases are not only eroding our profit margins but also impeding our consistency since we need to pass some of the price volatility to our customers. We do try, however, to absorb most of it.

Transportation charges are another major challenge for the plastic bottles industry. Transport costs of exporting products to the Gulf region are reasonable but Western countries post escalating freight charges which erode our profit margins substantially.

IRNE: Does the company have any imminent expansion plans?

Nofal: Duplas Al Sharq has major expansion plans on the cards for the next three years. By 2011, we intend to increase our production capacity by 20% with a further capacity thrust of 30% by 2012. Currently, we have a single production facility in the Jebel Ali Industrial zone in Dubai but we intend to expand our manufacturing premise and add new machinery and stores space to the existing structure. We also plan to penetrate the loAdidas Ultra Boost 3.0 Cny