KEF Holdings Opens New Manufacturing Facility in Sharjah

• New facility to provide industrial valves to growing energy sector in the Middle East
• Current Middle East demand for oil and gas valves in excess of US$ 3bn; expected to grow by 10% p.a.

Sharjah: 10 November 2008 – KEF Holdings (‘KEF’), the UAE-based manufacturer of steel castings and valves, today inaugurated its new state-of-the-art facility at Sharjah Hamriyah Free Zone, making it the first integrated manufacturer of industrial valves in the Middle East.

The new 50,000-square metre facility will be operated by JC Valves Sharjah, a KEF business and certified manufacturer of industrial valves. The facility will produce a comprehensive and specialised range of industrial valves allowing the company to serve the Middle East’s thriving oil, gas, petrochemical and energy sectors. The expansion follows Dubai International Capital’s acquisition of a 45 percent stake in KEF Holdings in September 2008.

The inauguration ceremony was attended by Dr. Rashid Al Leem, Director General, Sharjah Hamriyah Free Zone Authority; H.E. Venu Rajamony, Counsel General of India; Faizal Kottikollon, KEF Holding’s Founder and CEO; and Anand Krishnan, Chief Operating Officer of Dubai International Capital. Also attending the ceremony were representatives of key clients of KEF including ARAMCO, ENOC, Dubai Petroleum, TAKREER, GASCO, Qatar Petroleum, Qatar Gas, Kuwait Oil Company, TOTAL, Petroleum Development Oman and Occidental Petroleum.

Faizal Kottikollon, CEO of KEF Holdings said:

The launch of our new plant comes as a significant leap, not only for KEF Holdings, but also for the energy sector in the UAE and the wider region as a whole. We believe that this plant will bring much needed self-reliance to the Middle East, reducing costs and time for our clients in the oil and gas, mining, industrial, and petrochemical industries in the Middle East, Asia, Europe, and the United States.

The annual requirement of oil and gas valves in the Middle East is currently in excess of US$3 billion and is projected to grow by 10 percent annually. With the support of our key shareholder, Dubai International Capital, we look forward to expansion in key growth markets to meet this demand and plans are underway to set up a similar manufacturing facility in Saudi Arabia. We also plan to establish distribution and service centres in Qatar, Kuwait and Iran, which allow us to be closer to our customers.

Speaking at the inauguration ceremony, Anand Krishnan emphasised that the new facility opening marked an important step for KEF’s expansion across the region and its contribution towards the development of the region’s energy sector.

“Having been operational for just eleven years, it is a remarkable achievement that KEF has built and launched such a state of the art facility that is not only the best of its kind in the Middle East but as good as any in the world today. The facility enjoys the latest technology and vigorous procedures to ensure a reliable supply range of industrial valves to our region’s energy sector.”

Sameer Al Ansari, Executive Chairman and CEO, Dubai International Capital said:

Our investment and support attest to the faith we at DIC have in KEF’s management team and their ability to sustain impressive growth in the years to come as they continue to achieve world-class standards alongside their more established European industry peers.

In order to meet the future demand for industrial valves, JC Valves Sharjah is also planning to construct a larger facility, which will occupy an area of 100,000 square feet, situated adjacent to the current one at Sharjah Hamriyah Free Zone. Construction of the new facility will commence shortly and it is expected to be completed by mid-2009.

The first-of-its-kind facility in the Middle East allows JC Valves Sharjah to manufacture, assemble and test a comprehensive range of world-class industrial valves under one roof.

Established in 1997, KEF Holdings is the holding company of its two flagship businesses including JC Valves Sharjah and Emirates Techno Castings (‘ETC’). Collectively, JC Valves Sharjah and ETC form the Middle East’s first fully automated foundry boasting a production capacity of 36,000 tonnes per annum.

KEF serves over 70 clients including leading market players in the oil and gas industries such as Takreer, ENOC, Qatar Petroleum, KOC, PDO, Qatar Gas and Tyco. KEF was recognised for its best-in-class practices, as evidenced by their award of Best Foundry in the World by Weir Clear Liquid, a division of Weir Group.

Notes to Editors:

About KEF Holdings:

KEF Holdings is the holding company of JC Valves Sharjah and Emirates Techno Casting (ETC) based in the Sharjah Hamriyah Free Zone. ETC is the flagship business of KEF Holding. ETC manufacturers precision steel castings utilising cutting-edge technology and engineering ingenuity and distributes its products to the leading market players within the oil and gas, chemical, mining, industrial, and chemical industries located in the Middle East, Asia, Europe, and the United States.

Since its establishment in 1997 by Faizal E. Kottikollon, ETC has enjoyed an impressive track record of growth, averaging a growth rate of 60% over the past 3 years.  ETC began with one steel foundry in 1997 and now boasts three steel foundries with the production capacity of 36,000 tonnes per annum.  In addition, ETC is one of the world’s few foundries utilising the Vacuum Argon Oxygen Decarburising Furnace, allowing it to create special alloys which further enhance its ability to provide highly technical and customised products.

Its core values of Quality and Excellence earned it the distinction of the Best Foundry in the World, awarded in 2007 by Weird Clear Liquid, a division of Weir Group.  The company’s dedication to these core values has given ETC the ability to rival Europe’s leading established foundries in terms of efficiency and production.

JC Valves Sharjah is the regional office of JC Fabrica with exclusive distribution rights of branded commodity valves to the Middle East and Indian Subcontinent.

As part of its commitment to its staff, KEF Holding has built a Community Center on-site to provide educational and healthcare enrichment programs.

More information on JC Valves Sharjah, its products and technology is available at: www.jcmiddleeast.com. Information on ETC, its products and technology is available at: www.emiratestechnocasting.com.  

About Dubai International Capital LLC:

Established in 2004, DIC is an international investment company with offices in Dubai and London focused on both private equity and public equity. A wholly-owned subsidiary of Dubai Holding, DIC manages an international portfolio of diverse assets that provide its stakeholders with value growth, diversification, and strategic investments. Assets under management total over US$13 billion. DIC focuses on three asset classes:

 DIC Private Equity: invests mainly in secondary buyouts in developed markets where it backs strong existing management teams over a medium to long time horizon. DIC PE has acquired businesses in a range of sectors in Europe and North America including:

- UK leisure company Tussauds Group for £800m (later merged with Merlin Entertainment Group   to create the world’s second largest visitor attractions; DIC retains a 20% stake)
- UK engineering company Doncasters for £700m
- US engineering company FastenTech for $492m (later merged Doncasters with Fastentech creating world leader in turbine manufacture)
- UK hotel chain Travelodge for £675m,
- German industrial packaging manufacturer Mauser for €850m
- UK healthcare company Alliance Medical for £600m
- German producer of specialty alumina Almatis for US$ 1.2 billion

 DIC Global Equities: makes structured investments in large-cap, Fortune 500 global equities, that are forecast to deliver above average returns over the long term, either directly or via DIC’s US$1.4 billion Global Strategic Equities Fund (GSEF).

 DIC Emerging Markets: invests in a range of asset classes in emerging markets.

 - Equity investments: include significant stakes in the UAE-based luxury retailer Rivoli Group and Singapore-based True Group, a leading provider of wellness services in South East Asia, KEF Holdings a UAE based manufacturer of steel castings and valves, in addition to a US$200 million investment in Oger Telecom, a leading regional telecom conglomerate.

- Sector / country-specific investment funds: DIC has established several such as Ishraq, a US$150 million investment company bringing the Holiday Inn Express brand to the Middle East; the US$500 million MENA Infrastructure Fund, which invests in infrastructure projects in the Middle East and North Africa, and Jordan Dubai Capital, a US$300 million investment company that targets private equity opportunities in Jordan and most recently China Dubai Capital, a US$1 billion fund that will target opportunities in China’s growing economy.

DIC was named MENA Private Equity Firm of the Year in the 6th annual Awards for Excellence in Private Equity Europe 2008, organised by Dow Jones Private Equity News.

Information about Dubai International Capital LLC is available at: www.dubaiic.com.

For further information please contact:

Dubai International Capital LLC

Mark Lunn
Tel: +9714 362 1888
Email: mark.lunn@dubaiic.com

Jehad Saleh
Tel: +9714 362 1888
Email: jehad.saleh@dubaiic.com

JiWin for Dubai International Capital LLC

Maliha Aqeel
Tel : +9714 361 3598
Mob : +97150 6331976
Email : maliha.aqeel@jiwin.ae