Who is Peikko and how it does it help construction companies thrive?
Finland-based Peikko Group provides solutions for precast elements, cast-in-situ accessories and component. We also have an integrated composite beams system called Deltabeam, as well as wind turbine foundations.
We were established 1965 and have more than 50 years of experience. Today, Peikko’s solutions work towards sustainability and consider the efficiency and speed of construction. Peikko’s products help to reduce working time on construction sites, and our local warehousing and manufacturing enables faster deliveries, reducing carbon emissions caused by transporting goods.
Please bring us up to speed on Peikko’s work in the Middle East to date.
Peikko entered the Middle East in 2008 through a joint venture between Al Rashed Group and Peikko Group, creating Al Rashed Peikko LLC, which is based in Dammam, Saudi Arabia, where we have a warehouse and a sales office.
Peikko Gulf LLC was established in 2010 and is located in Ras Al Khaimah, UAE. Here, we have a sales office and in-house manufacturing facilities. Our clients are architects, construction companies, structural designers, flooring specialists, developers, investors, and energy executives.
How did Peikko perform in the last 12 months, and what are your expectations for the year ahead?
We are aware of impact and pressure in the construction market, as issues such as late payment and competition continue to create challenges. But there are still various types of construction projects taking place in the region. We are confident in our performance expectations for the business, and always listen to the needs of the market.
Construction is an important sector in Middle East, boasting more than $1tn (AED3.6tn) of projects in its pipeline today. Our pipeline spans across a number of sectors, including residential, commercial, and hospitality, as well as oil and gas. We hope to be a significant partner in a number of key projects, and expect to see annual growth of more than 20% by 2020.
What are some of the popular products you supply to construction companies?
One of Peikko’s products, Deltabeam, creates flexible and open spaces that enable the changing of layout of a building during its lifespan.
Regarding precast connections, one of the advantages of Peikko system is that temporary supports are no longer needed. It is no longer necessary to wait for the injection material to hardened, making it possible to continue building the next structural elements straightaway. This reliable and cost-efficient solution contributes to sustainable construction in the Middle East.
What is your long-term strategy for growth in the Middle East?
Peikko’s business strategy is simple: we want to achieve a high level of customer satisfaction and profitable growth by working in a respectful and trustful manner.
We have great opportunities to secure long-term growth in the future, and the Middle East is a strategically important for us as we move forward with this goal.
To ensure we are prepared for future challenges, we have started building a new factory and warehouse premises on an industrial plot in Ras Al Khaimah. UAE.
The factory will use the latest technology and automation equipment in order to enhance Deltabeam production capacity. It will also strengthen manufacturing capabilities thanks to its optimal layout that has been designed so that operations can be increased if the need for expansion increases in the future.
What are the major growth areas for Peikko moving forwards?
The strength of Peikko is that we have a strong technical and global presence in the construction market. This gives us the opportunity to understand the specific needs of local markets, and to develop technical solutions that answer such needs.
Peikko has a strong focus on research and development and has a good track record of launching innovative solutions. A good example is our column connection, which is made using column shoes and anchor bolts. Peikko also actively participates in standardisation work and large international research projects with leading institutions.
What are some of the main trends influencing Peikko right now?
Sustainability in construction, low energy buildings, and fire and life safety are among the key trends and areas of focus for Peikko in the region.
Sustainability and the circular economy are becoming strong tendencies, but the difficulty will be implementing these ideologies. The building sector has a part to play in the sustainability debate. That is why now have chosen to focus on the environment by converting our products and company strategy to the circular economy. We want the building industry to be part of the solution, not problem.