

Construction products giant Conmix – which is commemorating three decades of active service to the construction industry this year – is poised for yet another leap forward, this time ready to tackle the next booming market in the UAE – the capital Abu Dhabi.
“Conmix sees a very rapidly developing market in Abu Dhabi and is convinced that it is making the right decision by moving in as it has the potential and right resource-base to become the leading player in that burgeoning market,” says chief executive officer, Lothar Hellenkamp. “We are considering various plans and will soon establish a clear direction.”
However, this is not the only market the company intends to tap and plans are currently being chalked out to expand in various directions. Markets are being evaluated for further investment opportunities and new partnerships and ventures are being sought to establish Conmix as a key player, he adds.
Conmix is a joint venture of Bukhatir Investments and German Gulf Enterprises, both from the UAE, and Karl Epple of Germany, an internationally-renowned, readymix concrete and dry pre-mix plaster manufacturer.
When Conmix launched operations as a readymix supplier in 1975 in Sharjah, it was the first professional establishment of its kind in the Emirates. Starting with readymix concrete, the company later introduced pre-mix plaster to its production line.
The company has seen its fortunes seesaw over the past three decades and has, however, survived the test of time, thanks to its prudence and utilisation of the right strategies, comments Babu Shankar, chief financial officer.
“Conmix moved into exciting times with the first boom in 1993 and since then, there has been no turning back with a smooth upward growth curve. Buoyed by the boom, the company set up a number of new production facilities, starting with a sophisticated batching plant in Umm Al Quwain in 1998, followed by a new plant in Dubai the very next year, while its latest expansion was another production facility in Dubai Investment Park in 2004. Today, the company has production facilities that cover a 100 sq km stretch from Umm Al Quwain to Sharjah, Dubai and Jebel Ali,” explains Chris Lobel, general manager – readymix concrete.
The company is now looking forward to have set up another plant in Ajman to cater more fully to the requirements of the Northern Emirates.
Innovation has been the hallmark of Conmix’s existence and that is the reason why the company has grown enormously over the past decade. It has many ‘firsts’ to its name including the introduction of self-compacting concrete to the UAE market – a high-flow, yet stable concrete that can be spread into place and filled into formwork without any vibrations, he adds.
“Conmix will not rest on its laurels – it will continue to grow and expand,” states Hellenkamp. “We are big and we are still growing and that is probably why Conmix is regarded as one of the largest quality manufacturers of readymix concrete and pre-mixed plaster products in the whole Middle East region.”
Diversity
While readymix is the core of the business for Conmix – for which the UAE will always be the prime market – diversity in its business areas and product line has brought the company where it stands today. Pre-mix plasters and construction chemicals are the other divisions for which the company is chalking out plans and seeking to further diversity in terms of product mix. With this expanded product line, Conmix is now eyeing opportunities to establish a niche in the markets of more than 20 countries.
“Diversification has taken us places and none of our business lines is dependent on the other. With separate business plans and marketing strategies to remain as profitable entities, all three divisions – readymix concrete, pre-mix plasters and the construction chemicals – are growing independently. If one is facing a trough, the other two can carry the group through the turbulent times,” Shankar mentions.
“The concrete business will always continue to fluctuate and while building activity is likely to remain buoyant for sometime, there is a threat of overcapacity in the market which will kill profitability. This is a decisive factor that has forced us to diversify into other lines of business. We have seen the booms and recessions of the early 2000s so we know exactly how the market will behave,” Hellenkamp remarks.
He continues: “Sustained growth is what we need to survive in any business in the long run. We do not want to over-commit to anything and intend to maintain a steady growth pattern, which can help us to diversify and yet meet the market requirements. We are looking forward to develop a competitive base where we can not only educate and train our employees but also the investors and other decision-makers. Already, we have hired the services of the best consultants in the business to conduct lectures and symposiums here.”
Construction chemicals
The export of construction chemicals is the newest line of interest for Conmix and already the company has an established reputation in the foreign markets.
“Our decision to move into this line of business has paid off as our highly technical product range has found dedicated buyers’ circles. These products make market penetration relatively easy and this specialist market itself doesn’t go through a lot of turmoil,” comments C K Gopinathan, general manager, plaster & construction chemicals.
The Construction Chemicals division of Conmix has an extensive product mix, serving various speciality areas and different clientele in many countries. The products include:
• Cementitious repair mortars and grouts;
• Epoxy adhesives, grouts and repair products;
• Waterproof coatings, impregnations and membranes;
• Joint sealants and water bars;
• Floor treatments and toppings;
• Mould oils, curing compounds and surface retarders;
• Concrete and mortar admixtures; and
• Tile adhesives and bonding agents.
Pre-mix Plasters
Exports of pre-mix plaster have also been a major revenue source for the company. “Conmix pre-mix plasters are currently being exported across the region and the markets for these products are growing. We are evaluating various options to expand our area of operations,” Gopinathan adds.
The Conmix pre-mix plaster range comprises more than 50 types of pre-mixes, including:
• Cement and cement lime plasters;
• Gypsum lime plasters;
• Decorative plasters;
• Tile adhesives and grouts;
• Acoustic and insulation plasters; and
• Surface treatments, repairs and specialised mortars.
Presently, both construction chemicals products and pre mix plaster products are being exported to more than 20 countries including, Sudan, Ethiopia, Uganda Kenya, Tanzania, Syria, Lebanon, Kuwait, Bahrain, Saudi Arabia, Qatar, Oman, Afghanistan, Sri Lanka, and Bangladesh. Through its extensive network of distributors, Conmix currently sells more than 15,000 tonnes of various products per month.
Facilities
The company’s state-of-the-art production facilities in Sharjah, Dubai, Jebel Ali, Umm Al Quwain and Ajman, all have fully-computerised concrete batching plants and cutting-edge support equipment including chillers, ice plants, sand-drying ovens, screening units, de-dusting plants, packaging machines, storage silos, and sufficient warehousing space for the storage of the bagged plaster. It also operates two dry-mix plaster plants with a capacity of 600 tonnes per day and liquid plants for construction chemicals.
A new dry mix plant with a capacity of about 200,000 tonnes per annum will be erected in Jebel Ali in 2006.
Conmix’s plants are environment-friendly. Dust emission caused while charging cement and other fine materials in silos are reduced below internationally accepted levels by deploying specially designed filter techniques and automatic safety devices. Conmix has a modern recycling plant where excess concrete and washing water is reprocessed. Solid wastes are disposed of in a proper manner, while the water is reused for washing truck mixers. This helps in conserving water and keeps the environment unpolluted and tidy, comments Shankar.
Each of the factories has a fully-equipped laboratory where experienced professionals carry out strict checks on product quality. All the products meet the relevant BS, ASTM and DIN standards. These laboratories also collaborate with customers to develop tailor-made products to meet their exacting demands.
“On numerous occasions, we have satisfied the specific requirements of clients who want a particular feature in our products to serve their specifications. It’s a lot of hard work but it’s challenging and that’s what is best about it. Our laboratories are manned by a highly skilled technical staff who have wide experience in ensuring that the product is not only of the highest standards but also exceeds the expectations of the customers,” Hellenkamp says.
According to Hellenkamp, Conmix has an edge over the competition because of a number of factors such as its team of experienced engineers, seasoned laboratory personnel, advanced machinery and a research and development wing.
“Our engineers and laboratory personnel are supported by cutting-edge technology in concrete manufacturing, quality control equipment, research and testing facilities. This apart, our technical advisors are always on hand to assess projects and recommend the most suitable materials and cost-effective methods of use,” he continues.
Prompt delivery of quality readymix is of paramount importance in this business and at Conmix, this is ensured through logistically efficient use of more than 120 transit mixers as well as 20 mobile and stationary concrete pumps. Customers can be assured of the international quality standards maintained by the company, which received its first ISO certification in 1996 and now it complies with the ISO 9001:2000 quality system for quality assurance in design, development, production, installation and servicing.
Success
Conmix’s success can also be attributed to the constructive chemistry of its three thriving parent organisations – Bukhatir Investments, a well-diversified group of companies owned by Abdulrahman Mohammed Bukhatir, a prominent businessman in Sharjah; German Gulf Enterprises, a local engineering and trading company representing world-renowned engineering and heavy equipment/machinery companies as Putzmeister concrete pumps, plastering machines, Liebherr batching plants, Atlas excavators and truck-mounted cranes; and Karl Epple Holding, a pioneer in readymix concrete and plaster manufacturing technology, which has been active in the construction industry for over a century.
This professionally-managed company has a team of about 500 highly skilled and trained multi-national employees.
Over the years, Conmix has been associated with numerous projects in the UAE, GCC, Africa and South Asian countries. The long list includes some of the most prestigious projects such as Dubai Marina Tower (S1), Emirates Hills Apartments, New Medical Centre Hospital, Wafi Shopping Complex, Aviation College, BurJuman Centre, Emirates Towers, Al Maha Resort, Dubai International Airport expansion, Deira City Centre, Jumeirah Beach Resort and Burj Al Arab, all in Dubai; Zadco/Gasco headquarters building in Abu Dhabi; and Hamriya Free Zone Development and American University in Sharjah.
Abroad, the company has been associated with Assarain and Sai Wahaiby villa, Ministry of Housing building, Robat Palace, and Sultan Qaboos Mosque in Oman; Al Mizan Tower, Al Rajhi villa and King Fahad University in Saudi Arabia; Shafer chalet, Hilton Resort and Mohaleb Centre in Kuwait; Qatar Navigational headquarters and an amusement park in Qatar; a villa for Projects SA in Bahrain; HCL building and Silverline Technologies project in India; Rwenzori Courts in Uganda; and Blinden Mission building and DMJ head office in Kenya.