In what is said to be its first foray into Africa, Mulk Holdings, a United Arab Emirates (UAE)-based conglomerate, has entered into a joint venture agreement with Suzan General Trading, the Kenya-based diversified multinational group.

In terms of the agreement, Mulk and Suzan would launch a new company – to be known as Alubond Africa – and invest about $25 million in the unit. The company is to be launched in Kenya as part of a two-phased plan to firstly launch manufacturing factories by mid to end 2013.

Mulk said these factories will create a full range of Alubond USA metal composite panels, feature sub structure systems, an aluminum coil coating line and will act as a regional base for solar energy solutions.

According to arabianbusiness.com, the JV partners also want to visit Nigeria in October to investigate prospects in Africa’s second biggest economy and most populous country.

In terms of the arrangement, the JV will see Mulk holding a 55 percent share with the outstanding 45 percent share taken by Suzan General Trading.

Sharjah-based Mulk’s Alubond USA has become the world’s largest metal composite panel brand, with a production capacity of 28 million sq m worldwide operating in the UAE, Europe, US, Turkey, India, Saudi Arabia and Russia.

Arif Hafiz, group managing director of Suzan, was on Monday quoted as saying the consistent African economic growth in construction and energy coupled with abundant natural minerals and metals was a sign that for the next two to three decades business would be booming in Africa.

“Hence our decision to enter into this JV is at the right time and we are confident that Alubond Africa will prosper and grow many folds in time to come,” Hafiz said in a statement.