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CCME.NEWS, covering the regional and global HVACR industry with an unwavering commitment to providing in-depth news and analyses on policy, business and technology

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Premium Story

SIPOS expands its service team

Company claims recruits bring engineering expertise

Company claims recruits bring engineering expertise

SIPOS Aktorik, supplier of specialist and standard actuators for district cooling applications, has announced a major expansion of its service team. In the last two years, seven new recruits have been appointed to the actuator supplier’s technical support department at its German manufacturing headquarters, the announcement said.

According to SIPOS, the latest recruits have been selected for engineering expertise and strong service focus. The new employees combine high level engineering skills, academic qualifications and practical capabilities, the company claims.

SIPOS, which now employs 85 people at its headquarters in Altdorf, reports a growing global market for its products and services, including increasing demand from China. Service is provided on-line, by phone or on-site, the announcement said.

Other recent recruits for Sipos include new members of staff in R&D, production, order processing and administration, the announcement added.

Premium Story

Tabreed reveals 2010 unaudited financial highlights

Announces agreement to refinance Dh2.6 billion with its lenders to shore up its recapitalisation programme

Announces agreement to refinance Dh2.6 billion with its lenders to shore up its recapitalisation programme

National Central Cooling Company PJSC (Tabreed), the Abu Dhabi-based utility company, has released its full-year unaudited financial results for 2010. Tabreed revealed that for the 12 months ended December 31, 2010, its total revenue increased by 31% to Dh1,023.7 million, compared to Dh783 million in the same period in 2009, and the net profit, excluding the non-cash impairment declared for 2009, increased by 147% to Dh146.3 million over the same period in 2009.

The other financial highlights according to Tabreed are:

Gross profit increased by 53% to Dh426.4 million, compared to Dh278.1 million in the same period in 2009.

Net profit, excluding the non-cash impairment declared for 2009, increased by 147% to Dh 146.3 million, compared to Dh59.2 million in the same period in 2009.

Chilled water revenue for the period was Dh753.3 million, a 73% increase over the same period in 2009.

Basic and diluted earnings per share were Dh0.15, compared to Dh(1.22) in the same period in 2009.

Tabreed also announced that its bank lenders have unanimously approved the principal terms of an agreement to refinance Dh2.63 billion of liabilities and to extend Tabreed Dh150 million revolving credit facility.

The approved refinancing will convert its existing short-term bilateral and syndicated bank debt facilities into a consolidated facility, with an extended tenure and lower total cost of borrowing, giving it long-term flexibility to deliver its business plan, said Tabreed. 

Tabreed also revealed that it has secured an additional Dh400 million in short-term financing from Mubadala Development Company, PJSC, in the form of an amendment to the current Dh1.3 billion bridge loan. The bridge loan will provide Tabreed with funding, while the company completes its recapitalisation programme.

In this context, Khaled Al Qubaisi, Tabreed’s Managing Director said: “Today’s announcement is significant, not only because of the strong full-year unaudited results for 2010, but also because the approval of the terms of the refinancing by our bank lenders is a decisive step towards the successful recapitalisation of Tabreed. The Board and management of Tabreed are pleased to have reached this significant milestone and the company continues to work hard with all stakeholders to close the recapitalisation programme.”

Sujit S Parhar, Tabreed’s CEO, added: “The full-year unaudited results released today demonstrate a significant turnaround of the company’s performance over the last 12 months. The management and staff improved operational performance by refocusing on the core chilled water business. This has resulted in improved overall profitability and has positioned the company for growth, given the region’s demand for cooling infrastructure.”

Tabreed claimed that 13 plants and two plant expansions came online in 2010, adding 155,800 of gross capacity. This has brought its gross total installed cooling capacity to 541,525 TR across 49 plants as of 31 December 2010, Tabreed said. 
 
It also listed areas of both profit and loss:

Chilled water
Tabreed’s core business of chilled water produced revenues of Dh753.3 million, an increase of 73% when compared to Dh435 million in the same period in 2009. This performance was driven by new plants and plant expansions coming online, Tabreed said. The gross profit increased to Dh320.6 million from Dh165.8 million in the same period the year before.

Contracting
According to Tabreed, the company’s contracting segment recorded revenues of Dh 132.3 million, a decrease of 26%, when compared to Dh178.2 million over the same period in 2009, with a gross profit of Dh31.1 million compared to Dh23.1 million in the 12 months of the previous year. The increase in gross profit was due to less uncertainty around costs to complete, as projects reached completion, said Tabreed. It’s wholly owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results, reflecting completion of several projects and progress on others, including Sowwah Island, the company revealed.

Manufacturing
Tabreed’s manufacturing segment reported revenues of Dh95.9 million, a decrease of 34%, when compared to Dh145.3 million in the same period in 2009, while the gross profit fell to Dh28.2 million compared to Dh45.5 million in the same period of 2009. According to Tabreed, the decline was due to reduced order books and an increase in competition at Tabreed’s 60%-owned subsidiary, Emirates Pre-insulated Pipes Industries.

Services
Tabreed’s services segment, which is involved in the design and supervision of building electrical and mechanical works, reported revenues of Dh76.3 million, a decrease of nine per cent, when compared to Dh83.7 million in the same period in 2009, while the gross profit decreased to Dh48.4 million compared to Dh51.6 million in the same period in 2009. Tabreed said that the change reflected the regional real estate slowdown that affected the services division, which includes Ian Banham & Associates (Tabreed has a 70% shareholding), l2l (60% shareholding) and Cooltech (100% shareholding).

Premium Story

RathGibson appoints Mark G Essig as CEO

Essig brings on board previous experience as CEO and Executive VP

Essig brings on board previous experience as CEO and Executive VP

RathGibson, the Illinois-based manufacturer of welded, welded and drawn, and seamless stainless steel, nickel, and titanium tubing, has announced the hiring of Mark G Essig as its Chief Executive Officer.

“I am excited to have the opportunity to lead the RathGibson team and look forward to working with the company’s loyal customers and suppliers,” said Essig, who was most recently President and CEO of Sangamon Industries. Previously he served as CEO of Aviation Power and Marine, Barjan, GS Industries and as Executive Vice President at AK Steel, the announcement said.

Commenting on Essig’s appointment, the Chairman of RathGibson, Eugene Davis, said: “We are very pleased to welcome Mark to RathGibson, and look forward to the continued success of the business under his leadership. We thank Mike Schwartz for his steadfast leadership during RathGibson’s turnaround, and wish him all the best in his new endeavours.”

Premium Story

SIPOS finds subterranean solution

Underground conduction system uses concrete rings as an alternative to shafts and tunnels

Underground conduction system uses concrete rings as an alternative to shafts and tunnels

Saying that traditional built-in shafts and tunnels and below ground systems are costly to construct, extending the network and providing ongoing maintenance is expensive and preventing ingress of water, soil and other particulates is challenging, SIPOS Aktorik, supplier of standard and specialist actuators, has announced introducing the ‘concrete ring’ solution. The latest underground conduction systems are being supported by SIPOS Aktorik’s actuators, the announcement added.

The new design uses concrete rings as an alternative to shafts and tunnels. Requiring no maintenance, this approach is an ideal application for SIPOS’ variable speed actuators for valve control, the company claimed.

With a design that is ideally suited for this application, SIPOS’ actuators can be mounted on a below ground valve with the electronics unit installed in a separate, readily accessible, above ground cabinet, SIPOS explained. An integrated frequency converter protects motor controls making SIPOS’ product a ‘fit and forget’ solution that is ideally suited for this below earth application, it claimed.

Other features that make SIPOS actuators appropriate for the underground application are an eight-year servicing cycle and IP68 protection class, which confirms the product’s high corrosion resistance, the manufacturer added.

Premium Story

Kahramaa to host alternative energy summit in Qatar

Will partner with naseba, organiser of business summits, exhibitions and professional training courses

Will partner with naseba, organiser of business summits, exhibitions and professional training courses

According to a news release, following the success of the Qatar Alternative Energy Investors Summit 2010, Kahramaa – Qatar’s General Electricity and Water Corporation – has decided to partner with naseba, producer and promoter of business events, to host the 2011 edition of the summit. It will take place on March 16 and 17 at the Sharq Village Hotel and Spa in Doha.

Kahramaa claimed that this year’s event would be bigger and showcase regional alternative energy projects and initiatives, and host investment bodies, private investors and international and regional decision makers from across the industry to create a platform for raising capital for leading regional projects. The two-day summit would be attended by over 100 representatives from government authorities, investment firms, and industry service providers, amongst others, it added.

His Excellency Essa bin Hilal Al-Kuwari, Acting Managing Director of Kahramaa, Chairman of Gulf Cooperation Council Interconnection Authority (GCCIA), expressing his optimism about the summit, said, “It is an excellent opportunity to meet with all pivots of the renewable energy industry, including the government representatives, the academics, the investors and the private sector representatives.”

He further stated: “This summit is important as it comes at a time when the world economy is heading towards recovery after 2009 recession. The Qatari economy, as part of the market economy, is seeking this opportunity to invest in renewable energy, which will eventually benefit both the economy and the environment.”

In alignment with the energy investments plans of the region, the summit will highlight the future energy outlook for Qatar and the Middle East, the announcement elaborated. Additional highlights are expected to include: government alternative energy strategies and goals; the investment landscape within alternative energy; and the risks, the rewards and return on investment – solar versus wind – the key factors that need to be considered before investing.

Nicholas Watson, Energy Series Director at naseba, providing further insight into the event, stated: “Qatar Investment Authority is earmarking $130 billion for investment over the next five to six years, $65 billion of which will be devoted to energy-related projects. Qatar has an anticipated growth rate of 20% in a region that has energy investments potential of $615 billion; and active government initiatives such as Kahramaa investing $4 billion in power generation and involvement in the first solar-powered desalination plant, Qatar will very soon become the region’s energy hub.”

Some of the alternative energy experts who are slated to discussing key issues during the summit include: His Excellency Essa bin Hilal al Kuwari, Dr Horst Kreuter, Member of Board of Directors, International Geothermal Association, Dr Dirar Khoury, Director of Institutional Research, Qatar Foundation, Ben Cotton, Partner, Earth Capital Partners, and Ennis Rimawi, Managing Partner, Catalyst Private Equity.

The organisers have announced that Helianthus Group, Altira group (Ecolutions Solar), AZMEEL International for Construction and Trading, I2BF, Kahramaa, International Geothermal Association, and Oxford Business Group, among others will be the main sponsors and partners for the summit.

Premium Story

Emirates GBC kickstarts year with networking event

Dr Susan Roaf’s lecture offers insight into sustainable practices

Emirates Green Building Council (Emirates GBC), an organisation which is avowedly aimed at conserving the environment by strengthening and promoting green building practices in the UAE, has commenced its calendar of industry networking events for 2011 with a guest lecture by Dr Susan Roaf, Professor of Architectural Engineering at HeriotWatt University, UK.

Dr Roaf, an award winning teacher, architect, researcher and author, addressed the gathering on ‘Sense and science: minimising risk in the built environment in a rapidly changing world’.

The presentation was held at the Aloft Hotel, Abu Dhabi National Exhibition Centre, and was attended by industry professionals and academics,

Dr Roaf is an expert in setting benchmarks for sustainable buildings, adapting buildings for climate change, and also eco-house design. She discussed the application of sustainable practices to promote green buildings that will help mitigate environmental risks and promote the advancement in the community and economy at large.

On the occasion, Adnan Sharafi, Chairman of Emirates GBC, said: “The industry networking sessions organised by Emirates GBC are strongly attended thought leadership events that highlight the latest advances in sustainable development practices.

“The events help the Emirates GBC members and non-members to share best practices, and thus contribute to promoting green building practices in the region.”

He added: “Dr Susan Roaf has an exemplary track record in highlighting the challenges and opportunities in green buildings, and her session provided rich insights into practical realities, inspiring the participants to partner in promoting sustainable building development.”

In this context, Emirates GBC revealed that in-line with its key objectives of enhancing awareness on sustainability, special training workshops on green building principles are currently being offered to professionals.

Developed in partnership with British University in Dubai, the Emirates GBC supports training courses in Leadership in Energy and Environmental Design (LEED). The council also organises focus days for industry experts to interact and knowledge share.

Claimed to be the first green building council established in the UAE, the Emirates GBC is a member of the World Green Building Council (WGBC). The Council also leads the WGBC MENA Network – a cooperative initiative between Emirates GBC, Qatar Green Building Council and Jordan Green Building Council.

Premium Story

DSI bags first project of 2011

Dh160 million-contract awarded for a government project in Oman

Dh160 million-contract awarded for a government project in Oman

Drake & Scull International (DSI) PJSC has announced that it has been awarded its first contract of the year for a project worth Dh160 million in Oman. DSI will be responsible for the complete MEP works, including the design, supply, installation, testing and commissioning for the government project.

The company’s current backlog stands at Dh 5.5 billion as of September 2010. However, the company managed to secure additional contracts worth Dh800 million in the last quarter of 2010, DSI added.

Speaking of the company’s recent contract win, Khaldoun Tabari, DSI CEO, said, “We are pleased to begin the year on a positive note with this major project win, which demonstrates that the investments made over the last year have significantly solidified our presence in the region.”

According to DSI, it implemented an intensive expansion strategy over the last two years, during which, the company entered into new markets that included Kuwait, Qatar, Saudi Arabia, Egypt, Jordan, Syria, Oman and Libya.

In this context, outlining the company’s plans, Tabari concluded, “The future outlook for DSI is promising, as we look to venture into new geographical markets such as Iraq, India and North Africa, and consider entering into sectors such as Oil & Gas, which complement our existing portfolio.”

Premium Story

Green Building Middle East

28-30 March 2011, Abu Dhabi, UAE

28-30 March 2011, Abu Dhabi, UAE

To be held at Abu Dhabi National Exhibition Centre, Green Building Middle East is being billed as the largest international trade fair and regional summit for sustainable construction in the Middle East. Over 500 companies are expected to exhibit, showcasing thousands of products. According to the organisers, the show is expected to attract over 10,000 trade visitors.

A highlight of the event will be a conference track, comprising four high-profile global summits.

Being produced by Corporate Publishing International (CPI), the summits are: Building Smart, Climate Control Summit, Infrastructure Summit and Green Building Middle East.

Contact:
T: +971 4 335 6533
W: greenbuildingmiddleeast.com

For information on Climate Control Summit,

Contact: Frederic Paille
T: +971 4 375 6833
M: +971 50 714 7204
E: fred@cpi-industry.com

Premium Story

My life, my DCpline

From a stint on a ship to being at the helm at Emicool, Adib Moubadder has sailed the waters – the saline and the chilled variety – smoothly. As a committed advocate of district cooling, his vision is to reduce carbon emissions and deliver chilled water at the lowest kW/TR to the region and beyond.

From a stint on a ship to being at the helm at Emicool, Adib Moubadder has sailed the waters – the saline and the chilled variety – smoothly. As a committed advocate of district cooling, his vision is to reduce carbon emissions and deliver chilled water at the lowest kW/TR to the region and beyond.

MY BACKGROUND

I am 39 years old. I studied in Lebanon. I did my entire schooling – from KG1 to high school – at the American School in Saidon (now known as Saida), about 40 kilometres away from Beirut. I consider it one of the best schools. It was established in 1881.

After school, I wanted to study mechanical engineering at the American University of Beirut, but the atmosphere was not conducive due to wars in my country. So, I had to go to Alexandria to attend the Arab Academy for Science and Technology. In 1990, when I joined, it was a maritime academy. I was admitted to the Marine Mechanical Engineering College at the academy.

HOW I BECAME WHAT I BECAME

I studied at the Arab Academy from 1990 to 1995 and graduated with a Bachelor of Marine Mechanical Engineering degree. I was first in my batch. Representatives from the Abu Dhabi National Tanker Company (ADNATCO) attended the graduation ceremony. They straight away offered me a job! By the way, ADNATCO is a wholly owned subsidiary of Abu Dhabi National Oil Company (ADNOC).

Adib Moubadder at the Emirates Towers Hotel

Adib Moubadder at the Emirates Towers Hotel

I joined ADNATCO as a Trainee Engineer, and went on to progressively reach the position of the Third Engineer, then the Second Engineer and, for a short period, the Chief Engineer. I was with ADNATCO from 1995 to 1999.

After that, I chose to change my career path and enter the field of mechanical engineering. I applied for a job at the Emirates Towers Hotel, which was the third tallest building in the world at the time. We were the opening team for the Emirates Towers Hotel. I joined as the Assistant Chief Engineer and, then, became the Chief Engineer. I was with the hotel from 2000 to 2002.

And then I was elected by the Facilities Management (FM) Committee at the Jumeirah Group, which owns and operates Jumeirah Beach Hotel, Burj Al Arab, Emirates Towers Hotel, Wild Wadi and labour accommodation. I was the Facilities Manager for these entities. After a year, I became Senior Facilities Manager for the entire group. All the chief engineers of each of the facilities reported to me.

While at the Jumeirah Group, I was in the design committee involved in the design of Madinat Jumeirah – an experience that would serve me well later.

CHILLING OUT!

It was while here that I gained experience in running and improving the output of a chilled water plant. The chilled water network was old. The responsibility involved a very tight timeframe. It was crucial to eliminate temporary shutdowns and to plan for redundancy, considering that these facilities attracted very prestigious guests.

I learnt a lot and gained experience in networks and chilled water systems. I learnt how to be patient, how to have customer focus at all times, how to find engineering solutions and how to be innovative. My stint on a ship, with my education in marine mechanical engineering, came in handy. On a ship, you need to solve problems, and quickly, at that!

While at Jumeirah Group, I realised that there was going to be a boom in the real estate market for the next 10 to 15 years. I was appointed Corporate Facilities Director for Union Properties, and then, GM (Facilities). I was responsible for the design and running of the facilities (FM).

At the time, no one quite understood what Facilities Management meant. We developed the projects for a 20-year lifecycle. One example of a project is Motor City. I was involved in it from the design phase. My earlier experience in this area stood me in good stead. Thanks to my involvement in the two projects – Madinat Jumeirah and Motor City – I have wide experience in the design of infrastructure.

Owing to the trust that people in the board of Dubai Investments and Union Properties had in me (Dubai Investments and Union Properties together own Emicool), I was made MD of Emicool, in March 2010.

JOINING THE ’COOL

First, let me give a brief background about my association with Emicool. In 2008, I was appointed as Acting GM for a short duration. I received my posting as MD in March 2010. So, I have been in this position for a little over nine months. As Acting GM, I was required to step in as a temporary resource to do some fire-fighting. I studied the industry well during this time, and it has been useful. If you don’t know customer-behaviour how can you hope to serve them? So, I came with paradigm for customer orientation.

Since I have taken charge, we at Emicool have built a separate department for customer service, another department for finance and billing, and yet another for technical issues. Today, we have 5,600 customers who are connected to our district cooling plants. By the end of 2011, we will have 10,000 customers. How do I say 10,000 customers, you ask? Well, I still have new developments to be connected to the plants. They are Dubai Motor City, Dubai Lagoons and Retaj.

I love Emicool. It is a youthful company. And that is an advantage. If you are youthful, there is scope for growth. You can make the organisation grow.

It is a district cooling company that was initially formed to serve only a small community – the Green Community. Now I nurse a dream of making the company more dynamic, achieving sustainability, helping the environment, reducing the grid network and being a qualified utility service provider.

MY VISION

As a utility service provider, I want to serve other domains as well, in the future. Today, we serve the UAE. But we want to serve the GCC and, eventually, the rest of the world. That is my vision. I want to have a positive impact on the environment, reduce CO2 emissions and deliver chilled water at the lowest kW/TR. Today, I am working with Juan Ontiveros of the University of Texas at Austin, USA, whom I met through the International District Energy Association (IDEA). Together, we are aiming to achieve 0.82 KW/TR.

I believe that the company is in a continuous process of progress. I have put together certain guidelines. I want to establish a good relationship with customers who are going to be with me throughout the lifecycle of the project. I want to improve ERP and billings system. I want to establish an electronics communication regimen and SMSs.

CHALLENGES IN THE REGION

I see the fluctuation in the price of oil and gas as the major challenge. If the government could go for a fixed subsidising plan for 10 to 15 years, that would be of big help. We should be in a position to understand when the next hike in the price of electricity and water is going to be. Currently, we are living in uncertainty. However, I should hasten to add that this uncertainty is not only here, but is a global phenomenon.

Another challenge has to do with the need for the customer to truly understand the concept of district cooling and to realise that it is a reliable system and that it supports sustainable development. I want to increase the level of awareness about the importance of district cooling for health, safety, reduction in electricity consumption and a reduction of carbon emissions. The challenge is enormous, because like elsewhere in the world, the customer is looking for the cheapest option, the most economical solution.

With his family

With his family

I can understand the concerns of the customers (end-users). As it is, customers have to pay for water and electricity, and now, over and above that, they have to pay for district cooling. All these are huge operating expenses for them. So, they are dissatisfied. But they have to understand that from day one, when they bought a villa or an apartment, they have not had to invest in an individual chiller, so they have saved money. And also, they have not had to maintain it or replace parts. So, yes, there are savings. But the savings are hidden. They are embedded in the initial price of the property, which would have been much more, had the customers also had to pay for the chiller. Further, after they bought the property, the prices escalated, so they have made substantial savings on the cooling aspect of things.

In the final analysis, district cooling is definitely the way to go forward. People are questioning Dubai’s role in district cooling – whether it has adopted the right approach. But today, Dubai is an example for other entities in the GCC, like Qatar and Saudi Arabia. In my view, Dubai has done a great job in developing district cooling in the region, be it through Palm District Cooling, Empower or Emicool. They have given huge savings to the grid network. In Dubai Investments Park alone, the savings for air conditioning purposes is more than 700 MW. Surely, this is a valuable saving, right?

So, with the understanding that district cooling is the way forward, all district cooling companies should talk. They should discuss the road ahead. The authorities should be part of the talks, be they DEWA, Dubai Municipality or the Supreme Council. They should talk so that they can come out with a reasonable solution agreeable to all parties.

MY MENTORS IN LIFE

I have drawn inspiration from great people. Speaking from a scientific point of view, Albert Einstein is one such person. Sheikh Zayed Bin Sultan Al Nahyan is another source of inspiration. In my view, he did something big for the country. He gave a real structure to the country and also its unity. The country progressed by leaps and bounds, thanks to his leadership and vision. Mahatma Gandhi is another source of inspiration for me.

MY FAMILY

My wife is Tunisian and is the MD of a company. She is a legal translator and is well known. We have four sons – Youssef, Ali, Zayed and Yacine. Actually, my son Zayed was named after, Shaikh Zayed. It was my way of showing my admiration for the great leader.

Our boys are what my wife and I live for. They are a good bunch of kids. Like all other young boys, they play football and are very much into music.

MY INTERESTS

Organisational behaviour and quality management are two areas that have held an abiding interest for me. In fact, I have a Master’s degree in Quality Management from Wollongong University. So, you could say that it is my vocation and avocation.

Adib with his mates in the Emicool football team

Adib with his mates in the Emicool football team

Like my sons, I too am a football enthusiast. I play the game in my free time. And I’d like to believe I’m good at it! I’m a right back and have good stamina to last the entire course of a game. I have nurtured this interest even at work. At Emicool, we have a football team, which is, in fact, registered with the Dubai Sports Council.

I also play squash. I have reserved a slot for it on Fridays. I work out in the gym at least once a week. I think I have a good fitness regimen. Yes, I do take care of my health.

MY PHILOSOPHY

I don’t have a complex philosophy of life. It can be summed up in a single simple sentence: Don’t break anyone’s trust in life or promise or love.

Premium Story

‘ESMA is a positive development’

Carrier recently earned an ESMA certification and also launched the Evergreen 19XRD in the region. B Surendar of Climate Control Middle East caught up with Philippe Delpech, the president of Carrier EMEA, to discuss the developments. Excerpts from the interview …

Carrier recently earned an ESMA certification and also launched the Evergreen 19XRD in the region. B Surendar of Climate Control Middle East caught up with Philippe Delpech, the president of Carrier EMEA, to discuss the developments. Excerpts from the interview…

Could you please elaborate on your collaboration with ESMA (Emirates Authority for Standardization and Metrology)? What, do you think, will ESMA achieve? For example, there is a lot of work that needs to be done to improve installation standards in the UAE.

Philippe Delpech, president, Carrier EMEA

Philippe Delpech, president, Carrier EMEA

Carrier invented modern air conditioning in 1902. Since then, we have promoted energy efficiency and performance to support the regulatory agenda. We are involved the world over, be it in Europe, Asia or in the US; Carrier helped establish the US Green Building Council (USGBC), for instance.

We have been an integral part of many certification organisations, be it Eurovent or AHRI. Likewise, we hope ESMA takes off well and that it raises HVACR standards in the country. ESMA has the support from the government and can establish standards that will raise HVACR performance here to a higher level. This is a positive development, because HVACR energy consumption here is high.

Overall, we believe only reliable, environmentally conscious and ethical companies can participate in meeting customer demand for more sustainable offerings. From a long-term perspective, this is good for the UAE.

It is good that ESMA has the capacity to establish standards, which hopefully, will drive installation practices to the best level.

You have the distinction of being the first to earn an ESMA certification in the country, which you did recently. Do tell us about this.

In June, we invited ESMA to our factory in Saudi Arabia to view the entire product-manufacturing cycle. They audited the entire process and said we met the standard for this certificate. The range of products in the factory includes window units and splits – both outdoor and indoor – typically up to 5TR cooling capacity. We are honoured to be the first HVACR company to receive ESMA certification,

What, do you think, will ESMA be able to achieve with regards to curbing rampant counterfeiting?

The real issue has to do with the publishing of misleading information in catalogues. This is what we are hoping ESMA will investigate and regulate. We are heartened by the fact that the ESMA certificate is a mandatory requirement for importing goods into the country. Indeed, misleading thermodynamic performance is an issue, for instance, and any such unethical behaviour could damage the reputation of the entire industry.

You recently launched the Evergreen 19XRD in the Middle East. Does this firmly signal your re-entry into the central cooling market?

In the last decade, we have observed two phenomena. The first is district cooling, which contrary to common belief, is not so common, globally. For instance, you do not get to see district cooling in Europe and Asia of such large capacities as here.

The second phenomenon is in the growth of mega-projects. China is a driver of such projects, including mega airports or mega commercial centres. Keeping this in mind, we decided to expand our range in tonnage to supply to these mega projects. We had a major share of the projects connected to the Beijing Olympics.

One of the best product offerings to meet the requirements of large projects is the Carrier Evergreen 19XRD chiller, which is sold worldwide. It uses hermetic compressor technology and can be dismantled, shipped and reassembled with ease.

Outside the GCC, we have supplied to the new airport in New Delhi. Speaking of which, today, we see several mega-projects coming up in India. Generally speaking, we have the opportunity to supply to mega projects and, in that regard, the 19XRD represents a very successful move for Carrier.

What features make the 19XRD stand out?

It is a very standardised machine. It has large-volume hermetic compressors and is designed in such a manner that makes it easy to dismantle and ship. To be specific, you can place the 19XRD into two containers. It has a very efficient tube design, and the machine runs on non-ozone depleting HFC refrigerant. The capacity range is what we have standardised and modularised.

Do you think you have been late in entering the district cooling market here and that you did not capitalise on the boom that the UAE, in particular, experienced?

It’s a question of perspective. If we look at the UAE, district cooling has been a huge issue, but from a worldwide perspective, it is really a niche area. There is no district cooling in China or India to the extent seen here. It is a question of economics. To produce the 19XRD in large scale, for the quality we want, we wanted a large market base to achieve the return on investment. This condition came together when China took off with the Shanghai Expo, the Beijing Olympics and its large airport projects.

At the same time, we must not forget that in the 1970s, we supplied large capacity chillers to mega projects in this region. The district cooling story is rather small in the context of mega projects.

Do you see a market for the 19XRD with smaller modular chilled water plants?

Modularity is good. The reason why people are coming back to standalone plants is that they don’t trust the system of district cooling. The pendulum went too far on one side. In China, like most places, they want to pay as per consumption. In this part of the world, people should accept the fact that end-users may want to pay for what they use. If they build a 20,000 TR plant for five buildings and discover that only three are occupied, it is questionable whether it is fair on their part to levy the entire cost on the occupants of the three buildings.

The pendulum will come back to the middle. In addition, the economic crisis in Dubai was pretty dramatic. The district cooling concept, in itself, is not in question, but experience shows that the approach was flawed. It has to be balanced and matched with consumption. As for us, district cooling is an application that is very interesting, because the consumption of chillers is high, and the 19XRD is designed for that purpose.

What would you recommend to consumers: district cooling or standalone?

For us, we look at improving energy efficiency and minimising the impact on the climate. For some projects, we would advise standalone, and for some others we would advise district cooling. If it has to be district cooling, we would advise a modular approach. The 19XRD is a good size for modularity.

Carrier is a leader in providing energy-efficient solutions. To provide customers access to our experts in efficiency and environment, Carrier launched the AdvanTE3C Solutions Center, which support Carrier’s customers around the world in developing strategic, energy efficient and custom-engineered building solutions. These solutions include not just air conditioning systems but also other elements such as glass, windows and ventilation. Today, consumers are asking for advanced performance. You cannot achieve performance if you look at only air conditioning. That’s a development we are seeing in mega cities. The experts at theAdvanTE3C Solutions Center will work with the designer on issues related to chillers, AHUs and FCUs.

As President, what is your vision for the Middle East?

We are the leading company in the field of HVACR. We want to remain the leading company and improve our position, be it in the residential, light-commercial, commercial air conditioning or the commercial refrigeration segments. The strategy is to be focused to be the best supplier for our customers in each segment, always mindful of environmental stewardship.

We have a specific product range for each segment. In commercial refrigeration, for instance, we can offer turnkey solutions, be it to a hypermarket or small food retail store. Food safety requires a very high level of maintenance. We want to improve our relationship with the consultants to make sure the technologies at our disposal are embedded in the project right from the beginning. Also, we want to develop in-house service capabilities even further in order to serve our customers and through maintenance, sustain the highest level of equipment performance. I say this because the quality of performance of machines after installation tends to deteriorate, if not maintained properly.

The Middle East region has a lot of potential for better installation and better service. Today’s economic circumstances will certainly open the eyes of people and encourage them to look for reliable machines that also score high on energy efficiency, climate change mitigation, proper service and the availability of spare parts. During the boom, it was easy to forget these things.