Powerwall sees potential for prefabs as Libya and Iraq rebuild

A LANARKSHIRE manufacturer of prefabricated buildings has embarked on a major push into the Middle East as it targets construction projects in trouble-torn countries such as Libya and Iraq.

Powerwall, which runs a ten-acre production site in Wishaw and employs about 80 staff, is also locked in talks with potential partners in a string of markets, including Egypt and Syria. The firm’s fabricated structural frames, reaching up to 22 storeys, can be used in housing developments, schools and hospitals and are said to offer major time and cost savings over traditional building techniques. Its concerted push east comes on the back of two deals in the region.

The Scottish company, which began developing its modular building technology in the early 1990s, has just formed a partnership with a Saudi group to form Powerwall Arabia.

It will manufacture and market products under a licensing arrangement in Saudi Arabia and Qatar.

Powerwall has also entered into a partnering agreement with the Al Badie Group in Abu Dhabi to market its building system in a number of “key locations” in the Middle East.

Global sales director Joe Pacitti said the region in general was in a growth phase, with older infrastructure in need of upgrading or replacement. “The whole of the Middle East is looking to increase investment in quality housing, hospital, schools, hotels and the like,” he said.

“In Saudi and Qatar the drivers are high population growth and a need to improve the quality of buildings – hence the fast solution to this being modular.

“Across the other regions we are seeing the key drivers of post social change and a need to support the population with again better quality accommodation and schools, etc.”

Pacitti, who also pointed to “early stage interest” from several North African countries, said that by licensing the manufacturing of the building system, jobs could be created in the local markets. Powerwall’s global sales director told Scotland on Sunday earlier this year he was confident the firm could build up between £50 million and £100m of international business over the next five to ten years.

Talks have also taken place with prospective partners and “interested parties” in Canada, China and the United States.

He explained at the time: “We get an initial licence fee but the key is the royalty for every square metre or foot.

“In Canada, for example, we could have three licensees and between six and ten in the US. I reckon that for every 12-15 million of population there could be a manufacturing plant without encroaching on other operators.

“We could be looking at 100 licensees in ten years, but that may come earlier as we build up a head of steam.As it is based on a royalty system, we are looking at a recurring revenue stream.”

Powerwall’s “volumetric” building system is also said to have attracted interest from oil and gas explorers operating in remote regions.

In addition to its main plant near Glasgow, the company has a facility in Udine, in Italy, and employs up to 40 sub-contractors. It turns over some £15m, but is projecting growth of 60 per cent-plus in the next couple of years as the number of licensees multiplies.