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EJEP’s seminar advances strategy on Aluminium exports to EU

In its drive to promote Jordan’s exports of Aluminium products, the Euro-Jordanian Action for the Development of Enterprise (EJADA) held a seminar in Amman last month under the auspices of its Euro-Jordanian Export Programme (EJEP).

Addressing the seminar, Mr Vogt Otfried (project consultant) presented the export penetration strategy for Aluminium extruders and fabricators into European markets.

Mr.Otfried detailed his findings over the prospects that exist for Jordanian Aluminium extruders and fabricators to export to EU countries, and he summarized his recommendations on how best to prepare a penetration strategy taking into consideration the existing demand and supply factors governing the EU markets.

Mr. Otfried summarised the results of the Inward Buying Mission that took place in Jordan during the 3rd week of September 2005 when six European buyers (extruders and fabricators) held one-to-one business meetings with their Jordanian counterparts (SMG members). In the strategy, Mr Otfried recommended that Jordanian companies within this sector should: become sub-suppliers to extruders in the Western European countries; cooperate with EU companies in promising industries other than Construction as the prices in Construction standard profiles in Europe are hardly cost effective.

The companies should concentrate on added value manufacturing processes and aim at establishing joint ventures with partners in Central Europe and the Balkan States to enable them to participate in tender bids in Europe. Addressing Jordanian Aluminium fabricators Mr. Otfried suggested that, to penetrate the EU market, several significant changes need to be managed successfully on a short term and to start in the non-EU states through establishing partnerships. He said that the first results from the Inward Buying Mission for the Aluminium fabricators are promising and fabricators should build-upon the business opportunities that were presented to them under this mission.

On the other hand, Mr Otfried recommended that Aluminium manufacturers should consolidate through establishing their own sector representative association. Mr Otfried recommended that the association be grouped by product. A sample association structure was presented to the participants during the meeting. “The meeting was quite fruitful, and we hope that regular visits by experts would enhance our production quality and our export potential to enable us to penetrate efficiently into EU markets,” said Mr. Mohammad Marashdeh, general manager of Arab Aluminium Industry Co., extruder. He indicated that the sector needs ample support in the field of investment in training through donor programmes, and he lauded the Royal Scientific Society’s support which has benefited the sector through the bringing in of experts to give advice on Clean Product, and on methods to save energy and reduce water consumption.

Marashdeh suggested that outsourcing by EU companies from Jordan would be the most viable option to enhance exports of Aluminium profiles and casts. Mr. Naji Al-Naji, sales manager of Modern Aluminium Industries Co., extruder, hailed the seminar as an eye opener and said, “More visits by experts are needed to upgrade the industry to European standards.” On the fabricators side, Mr. Shadi Izmiqna, projects manager of Al-Faqeer Industrial Co., said the meeting was useful as it pegged our industry’s capabilities against the standards in Europe. “The comparison enables ground for improvement and hence there would be always need for experts’ visits to evaluate the scope of development that we would require to attain European standards…Visits by SMG sector members to EU industries would also give us a hands-on knowledge of procedures implemented there.

On his part, Mr. Omar Shegem, managing partner of Petra Aluminium Co. said, “EJEP has implemented its role as an entity geared towards helping Jordan’s Aluminium exports.” However he was critical of the buying mission that visited Jordan. “The Inward Buying Mission included two European companies that were more interested in exporting to Jordan; however one company from one of the Baltic States has shown interest to buy from our company,” Shegem declared.

Amman,10October2005
Redaction
The Star


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