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Monday, November 9 - 2009

Zamil Air Conditioners Executive delivers keynote address at Gulf Construction Conference series

  • Saudi Arabia: Monday, December 08 - 2003 at 08:58
  • PRESS RELEASE

Mr. Abdullah Al Zamil, Senior Vice President of Zamil Air Conditioners (ZAC), a leading international manufacturer of air conditioning systems and the Middle East leader, delivered the keynote speech at The Annual Heating, Ventilation and Air Conditioning (HVAC) Conference 2003, which took place from 1-2 December 2003 as part of the Gulf Construction-organized conference series.

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The event was officially supported by The Big 5 Exhibition in Dubai, United Arab Emirates.

Mr. Al Zamil's speech - titled 'Roadmap to effectively managing climate control: outlook on the business of comfort and process cooling in the GCC' - highlighted energy, technology and HVAC industry issues in the GCC region and outlined the necessary steps to positively address them.

"The HVAC industry in this region has a profound impact across economic, social and environmental fronts and the numerous opportunities presented by its growth also poses serious challenges relating to energy consumption and the environment and these must be tackled with diligence and commitment," said Mr. Al Zamil.

The explosive market value of the comfort and process cooling sector in the GCC is estimated to exceed US$ 1.2 billion per annum in products / parts and possibly double that in terms of associated products and services. From a socio-economic standpoint, HVAC-related employment exceeds 65,000 jobs and provides total family income of some US$ 1 billion. Local manufacturing contributes some US$ 750 million towards regional GDP.

"Against this growth are 'hidden' energy and environmental costs, which are estimated to exceed US$ 1.5 billion per annum - based on an appropriation of 28 MW of power, and this excludes the cost of plants which will require an estimated capital outlay of US$ 150 billion over the next 20 years. Compounding these costs are the direct impact on the environment from carbon dioxide emissions, the greenhouse effect and global warming," said Mr. Al Zamil.

"ZAC is committed to playing an active role in helping to counteract these negative implications while at the same time satisfying the increasing cooling requirements of the region, which is necessitated by a growing population and economy and a corresponding requirement for increased construction," he added. "We aim to achieve this through the ongoing use of emerging technologies in the production of air conditioning equipment and to contributing towards R&D efforts through our US$ 10 million Air Conditioning Technology Center."

Immediate measures to ensure more efficient energy consumption include following simple conservation steps and implementing an energy design process which optimizes the interaction between a building and its mechanical systems rather than relying on widely used construction and sourcing practices that are currently based on low material costs and low innovation levels. This requires detailed energy simulation tools for use throughout the design and construction phases of a building and as such the development of specialist expertise supported by the creation of industry incentives.

Other aspects which must be considered include the right-sizing of HVAC equipment, the use of higher efficiency mechanical equipment, and thermal storage technologies for commercial / industrial applications, where air conditioning equipment is operated during evening off peak times so that resultant thermal energy is stored as ice or chilled water so that is can be used at a later time when it is most needed, such as during daytime peak hours.

Over the medium term, ZAC advocates that utilities optimize the power generation industry through reform, along with support from government agencies and the construction industry. This should include restructuring tariffs to promote electricity conservation and the creation of incentives for developing wind, solar, geothermal and biomass alternatives, as well as implementing new construction regulations and legislative standards certifications and forming associations and societies to promote best practices.

Long term initiatives to ensure affordable cooling include launching GCC-wide initiatives that support research and product development by harnessing the region's natural resources to innovatively adapt existing technology to create, for example, solar energy through the sun's power, gas-driven cooling using the abundant resources in the region, and geoexchange cooling systems, which tap into the earth's stored energy resources.

"Clearly there is a great deal of work to do but by following these steps, the savings stemming from an energy conscious public policy, standards and regulations and effective incentives programs, R&D funding and consolidating efforts among all strata of business and industry can effectively support economic growth in the region, reduce energy bills, increase comfort levels and most importantly, have a major impact on reducing global warming and the depletion of the ozone," concluded Mr. Al Zamil.
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Notes and media contacts

About the Gulf Construction Conference Week
Officially supported by The Big 5 Exhibition, the annual Gulf Construction Conference Week is the international building and construction forum for the Middle East. As a focused, informative and networking event, it comprises The Annual Heating, Ventilation & Air Conditioning Conference 2003, The Annual Aluminium & Glass Conference 2003 and The Annual Insulation Conference 2003. The event series is regarded as the region's premier platform for introducing and discussing new ideas, products and services and is attended by construction industry personnel interested in keeping ahead of industry developments.

About Zamil Air Conditioners
Zamil Air Conditioners (ZAC) was founded in 1974 as one of the first air conditioning business to be established in Saudi Arabia and today is a leading international manufacturer of air conditioning systems and is Number 1 in the Middle East. It designs, manufactures, tests, markets and services a comprehensive range of air conditioning products, which range from compact room air conditioners and mini splits to large scale central air conditioners, chillers and air handling units for highly specialized applications. These are marketed under various brand names - Classic, Cooline, Cool Care, Clima Tech, Kessler Tech and Geoclima - depending on specific markets.

ZAC is also involved in the production of branded air conditioners for leading international manufacturers, Sanyo, Trane, Luxaire, Philco, Admiral, Siemens Bosch and Frigidaire, under an Original Equipment Manufacturer (OEM) agreement. It operates a joint venture with General Electric, called Middle East Air Conditioners Ltd. (MEAC). As a result of excellent production facilities at ZAC, a range of GE-branded air conditioning consumer products are produced for Saudi Arabia and other Gulf countries.

ZAC is one of three sector businesses of Zamil Industrial Investment Company.

About Zamil Industrial Investment Company
Zamil Industrial Investment Company (ZIIC) was founded in 1998. It is headquartered in Dammam, Kingdom of Saudi Arabia, and employs more than 4,800 people in 50 countries. As an international manufacturing and fabrication group, it provides leading air conditioning, pre-engineered steel buildings, structural steel products, transmission towers, open web joists and decks, and architectural glass processing solutions to meet the requirements of the global construction industry through its three sector businesses: Zamil Air Conditioners (www.zamilac.com), Zamil Steel Industries (www.zamilsteel.com) and Zamil Glass Industries (www.zamilglass.com).

ZIIC exports to more than 70 markets and derives 37% of revenues from outside Saudi Arabia. For the period January - September 2003, net profits after Zakat contributions grew by 9.3% to SAR 45.3m (US$ 12.1m), while post Zakat earnings per share also grew by 9.3% to SAR 7.55 ($2.01), up from SAR 6.91 ($1.84) during the same period in 2002.

For the year ended 31 December 2002, profits were SAR 50.8 million (US$ 13.5m) on turnover of SAR 1.4 billion ($ 376m). ZIIC's shares have been actively traded on the Saudi Equity Market since early 2002. More information can be found at www.ziic.com

For further information on this press release, please contact Zamil Industrial Investment Co., Public & Investor Relations Dept., Tel: (966) 3 8471840, Fax: (966) 3 8472574.

Issued on behalf of Zamil Industrial Investment Company by Hill & Knowlton. For more information contact Jamil Alsharif on Tel: +973 533532, Fax: +973 533370.

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