This is Economic Impact, conversations from Emirates Development Bank (EDB), the key financial engine for economic development and industrial advancement of the UAE. In each instalment CEO Ahmed Al Naqbi speaks to change-makers and thought-leaders in the UAE to learn how they’re contributing to the nation’s economy and realising the UAE’s economic ambitions.
In this final episode in season one we're joined by Mr. KM Noordeen, the chairman and founder of Ocean Rubber Factory, to talk about his journey to success...
A leading supplier of technical rubber products in the Middle East, Ocean Rubber Factory is now acknowledged to be the biggest technical products manufacturing units in the Middle East.
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Speaker 1: HOST
Speaker 2: GUEST
00:00:00 INTRO V/O
“This is Economic Impact...Conversations from Emirates Development Bank”.
00:00:05 Speaker 1
A’salaam A’laikoom, welcome to Economic Impact, Conversations with Emirates Development Bank. I'm very happy to have with us a special guest today, Mr. Mohammed Noordeen, the chairman and founder of Ocean Rubber Factory. Mr. Noordeen, welcome. Thank you for joining us today. Can we start by hearing a bit about your background, a bit about the journey a bit about the factory, about Ocean Rubber itself.
00:00:29 Speaker 2
Yeah. Thank you, Ahmed. Thank you for giving us the opportunity to talk about the industry in the UAE and how the Ocean Rubber Factory came into being. We started manufacturing just before the Iraqi invasion of Kuwait.
00:00:48 Speaker 2
We were establishing at that time.
00:00:52 Speaker 2
Then, if you remember, I don't know if you, how old you were, or you were even born those days, in 1990, second part of 1990. It was a scary situation here. We're worried about Scud missiles and chemical bombs and things like that. Many people had left, families left and many businesses closed.
00:01:13 Speaker 2
But we were preparing for the industry, ordering machines.
00:01:19 Speaker 2
Erm...the particular day I remember is the 9th of January 1991, evening. There was a scheduled meeting between Iraqi Foreign Minister Tariq Aziz and American Secretary of State James Baker, and everybody knew that if the talks fail, there could be bombardment immediately.
00:01:42 Speaker 1
Right.
00:01:43 Speaker 2
I was ordering machines. I was out of the country to finalize order for machines at that time. I’d just landed before the conversation started to be with my family. OK, the result is, as expected, as feared the talks failed, war started, but war did not last very long.
00:02:09 Speaker 1
Right.
00:02:10 Speaker 2
But we had the American Navy ships and British Navy ships and many other Navy ships in the Arabian Sea and Arabian Gulf.
00:02:20 Speaker 2
And they wanted supplies, supplies needed rubber products, many of them custom made.
00:02:28 Speaker 2
In one particular instance, it's a hospital ship called Comfort. They were facing a problem that the sea water was lashing into the operating theater.
00:02:41 Speaker 1
OK.
00:02:43 Speaker 2
But they cannot block it because the casualties have to come in emergencies.
00:02:47 Speaker 1
Right.
00:02:48 Speaker 2
They consulted us so we designed and manufactured a triangular shape rubber barrier.
00:02:56 Speaker 2
Which stopped the water coming in but allowed the casualties at the same time with very soft rubber. And the US Navy was very happy and we got U.S. Navy approval.
00:03:13 Speaker 1
Fantastic.
00:03:14 Speaker 2
Soon we got to British Navy approval and many other merchant navies and merchant vessels. And you know, we started today…if Dubai Dry Dock is a is a pride of our country…
00:03:27
Right.
00:03:27
…for this kind of activity services and activities, in the development of Dubai Dry Dock Ocean Rubber Factory has played a small but vital part…
00:03:38 Speaker 1
Right.
00:03:40 Speaker 2
In one particular instance, if you allow me to explain, you got a call from the ship manager. A vessel is ready to deliver but the delivery cannot take place because it's a butterfly valve is leaking, and this valve is not available…
00:03:58 Speaker 1
Right.
00:03:59 Speaker 2
So, five o’clock we got the call and immediately we dispatched people and we took the valve and went for blasting, cleaning and fixing new rubber and curing it in the autoclave. Morning, before the ship manager came to work…
00:04:19 Speaker 2
Right.
00:04:20 Speaker 2
The refurbished butterfly wall was delivered to them…
00:04:23 Speaker 1
Right.
04:04:24 Speaker 2
…and they could take the delivery of the vessels.
00:04:26 Speaker 1
Fantastic. Fantastic.
04:04:27
The value of that wall may be small, but it could facilitate their work.
00:04:37 Speaker 2
Similar activities we started, you know, this is how we started our business.
00:04:43 Speaker 1
It's amazing. I mean, what I'm hearing is there is a strong element of entrepreneurship, a strong element of innovation. Before innovation was even a buzzword in the sense that you had to create a product that met a certain need that was not necessarily something that was even found or existed at the time.
00:05:03 Speaker 1
How did you go about that mindset? So, you know when you, when you were first met with the challenge, right, the challenge of they require x amount of products. How did you and the team sit and come up with a solution to this and then go and then go about the execution of it and the manufacturing of it?
00:05:21 Speaker 2
That was not by design. It was by accident actually.
00:05:25 Speaker 1
Like, like all fantastic businesses, yes.
00:05:28
Actually I was, at the age of 31, I became a general manager of a group company...
00:05:34 Speaker 2
Right.
00:05:34
...second largest trading business in the UAE, I was the youngest general manager.
00:05:42 Speaker 2
At the age of 36, I had to…
00:05:44 Speaker 1
Right.
00:05:45
…retire because I could not agree with the, with the, with the owner about certain things.
00:05:50 Speaker 1
Right.
00:05:52
I resigned so they accepted the resignation after five months. But in five months I was thinking what to do?
00:05:57 Speaker 1
Right.
00:05:58 Speaker 2
It's a matter of principle. I cannot continue.
06:01
Yes.
00:06:02 Speaker 2
Having worked in a large organization in a senior position, I was not prepared mentally prepared to take up smaller assignments in smaller companies. So, we decided to go into business. Business those days means trading business.
00:06:18 Speaker 1
Right.
00:06:19 Speaker 2
So, naturally I went for trading business. We imported some special products and started distributing to cement factories and similar industries. But in one year, I lost all the money I invested!
00:06:31 Speaker 1
Right.
00:06:33 Speaker 2
So, I knew that it was not my cup of tea.
00:06:33 Speaker 1
Right! Right.
00:06:35 Speaker 2
So, what to do?
00:06:38 Speaker 2
So, we considered manufacturing. So, what to manufacture from this country? Our country is rich in many things. But we do not have enough natural drinking water.
00:06:51 Speaker 1
Right.
00:06:52 Speaker 2
And the water main source is the sea water and the brackish water. Sea water, you know, it is very corrosive, if you put a coin in the sea water after a few days it will get dissolved.
00:07:04 Speaker 1
Right.
00:07:05 Speaker 2
Such corrosive material.
00:07:07 Speaker 2
The desalination is the way we were getting potable water. The desalination was done mainly by European companies and the service was done by European companies at very high cost.
00:07:20
Right.
00:07:22 Speaker 2
So, we started to get into that, so made contacts with BTR, so, BTR Dunlop is a subsidiary of BTR, British Tire and Rubber. So we went to we made an agreement with er, with BTR, we went to Manchester in February 1990 and signed agreement with them.
00:07:45 Speaker 2
And we started getting high quality rubber from them. We found trained workers from India and equipments and we started offering this. Hitachi was a Japanese company who had taken a contract in Qatar delivered a large number of pressure vessels to us for rubber lining.
00:08:09 Speaker 2
We started learning from them, and also from the clients, and also from the requirements and specifications.
00:08:16 Speaker 2
Today, later on, not only Hitachi…many, many other companies and ministries, they approved us.
00:08:24 Speaker 2
And you know, Degremont - it's a, it's a giant in desalinization. It's a French company, they later on delivered a huge number of vessels, manufacturing order to us.
00:08:37 Speaker 1
Right.
00:08:38 Speaker 2
So, we got all the approvals for the pressure vessel manufacturing and we built up a good facility in Ras Al Khaimah…that's where we went to Ras Al Khaimah, because we had to put up a rail system.
00:08:51 Speaker 2
Well, one end the metal sheets are delivered then rolling, processing and rubber lining and testing and finally, epoxy coating outside and delivery test go into one stream.
00:09:09 Speaker 2
Today, you know, we are acknowledged to be a reliable supplier of pressure vessels for desalination.
09:09:18 Speaker 1
Yes.
09:09:19 Speaker 2
And also a manufacturer of rubber products approved by World Water Council.
00:09:25 Speaker 2
There are only few companies in the world approved by World Water Council. We are one of them.
00:09:31 Speaker 1
Fantastic. Fantastic.
00:09:32 Speaker 2
So, it is evolution…I did not plan to start a business…
00:09:36 Speaker 1
Of course, of course.
00:09: 38 Speaker 2
In fact, I did not start - and then to start the manufacturing business, it all happened.
00:09:43 Speaker 1
Ma’sha’Allah. How would you say, Mr. Noordeen, that you, as you actually just mentioned, I mean, you basically stumbled into it due to the circumstances of life?
00:09:50 Speaker 2
Absolutely.
00:09:51 Speaker 1
And as you evolved over time, you, you pivoted multiple times into different business areas depending on the demand that you saw in the market. What are those key aspects of an entrepreneur, or a business owner's - traits. You know, things that that are that a business owner or an entrepreneur should have as a skill set, not something that's taught at school because this isn't things that you can teach in a school, right? But what are those things that you think are very valuable for any young business owner today who's going out to start their own business. What are those qualities that you think they should have or they should be working on?
00:10:27 Speaker 2
Now this should be our, we should be approachable. We should be access accessible. We should be, you know, easy to communicate with, so that we should be a team player.
00:10:40 Speaker 2
And that that person should be we should be able to build a good team. So only a consistent team and and dedicated team effort can bring, erm, success, and only then we can overcome the obstacles.
00:10:56 Speaker 1
Right.
00:10:57 Speaker 2
So, if the Ocean Rubber factory is successful mainly it’s because of our team, thanks to the Board of Directors, but also the team, you know, those people who joined in 1990 as young engineers they are today AGM's and DGM's. They are still with us. Our employee retention is about 95 to 98%. Normally nobody leaves us because we try to be very friendly with everybody and we try to understand that.
We know that people in the UAE are so multi-ethnic, multi ethnic background, so we allow them to practice as long as it doesn't you know, er, obstruct to the beliefs and the practice of others…
00:11:46 Speaker 1
Right.
00:11:47 Speaker 2
…so, they feel free, they feel this, this their own company, they are not employees. This is their own company…
00:11:52 Speaker 1
Right. Fantastic.
00:11:53 Speaker 2
So, we are able to have that feeling. Then half the job is done.
00:12:01 Speaker 1
Amazing. We actually share a common value with Emirates Development Bank, which is to live a culture of respect. It sounds very much that Ocean Rubber lives a culture of respect…
00:12:10
Yes.
00:12: Speaker 1
And exactly as you just mentioned that's, I'm sure, one of the key reasons why you have such a high retention rate and why you have such longevity with the employees that are there.
00:12:21 Speaker 1
If I could ask you, because you know your business has been around since the late 80s, it was founded in 1986, it's gone through various evolutions, various steps. How have you seen the evolution of the UAE market and the economy throughout those decades? Could you just touch on, on, what you saw? You touched a bit on the early 90s, I'm sure you saw, you know, the mid to late 90s and the 2000s and now the 2010s, and now post COVID. So, how have you seen the evolution? What were some of the highlights of that, you know, different periods?
00:12:54 Speaker 2
And this is unparalleled. In fact, there is no, I have traveled and lived in many countries but you cannot compare UAE with any other country, just got its own merits. The evolution is tremendous.
00:13:13 Speaker 2
As a manufacturer, the biggest problem we were confronting was to get acceptance as as a manufacturing country…people those days were considering the UAE as a land with lot of sand and camels.
00:13:31 Speaker 1
Yes, yes, very much, yeah.
00:13:33 Speaker 2
Even the, the local, many local companies did not want to buy locally produced goods. They did not believe in the quality, so everyone was importing. So, driving the idea of making the UAE…
00:13:49 Speaker 1
Right.
00:13:50 Speaker 2
So, how can we do that? So, we were concentrating on high end products from the beginning…
00:13:55 Speaker 1
Right?
00:13:55 Speaker 2
That is our relevance…
00:13:57 Speaker 1
Interesting. You went? You went straight to the top, essentially.
00:13:59 Speaker 2
Yeah, absolutely. So, we thought, so what we did is we introduced the European, the European Integrated Quality System. Then we went for European technology. Then we decided that all critical raw materials will be bought only from Europe. And used the Indian-trained workforce to manufacture in the UAE, which is in the middle of East and West…
00:14:30 Speaker 1
Right.
00:14: Speaker 2
…with very good infrastructure.
00:14:34 Speaker 2
So, this is how we started, you know, over the period.
00:14:42 Speaker 2
Now everybody accepts that the products made not only by UAE, by Ocean Rubber Factory, many other countries, companies, these are these are at par with European products.
00:14:55 Speaker 1
Right.
00:14:56 Speaker 2
Over the period that acceptance has come, many of the of the investors have starter manufacturing units and things like that, rather than only putting trading companies and supermarket chains and things like that.
00:15:10 Speaker 2
There are many people who are going into manufacturing and the UAE has a great, great future as a manufacturing hub.
00:15:19 Speaker 1
Right. Now what have you seen as highlights from the early 2000s till the pre-COVID era and then the highlights post the COVID era?
00:15:31 Speaker 2
Up to the pre COVID era, it was organic growth that was happening. Then we were washing hands for two years, so it's changed the outlook of many people. So, the stress is more on the economy and the financial services and things like that which we were not happening, hearing…
00:15:56 Speaker 1
Yes, before.
00:15:57 Speaker 2
…you know long time ago especially before 90s, we were not happening, er hearing about this. So, you know UAE has understood its I hope understood the importance of industrial development, especially remember, let me go back to the Iran, Iraq, er, Iraqi/Kuwaiti war time. Three days, but only three days, there was no air contact. There was no sea contact. There was no, you know, land contact. It was isolated. The UAE was isolated.
00:16:33 Speaker 1
Right.
00:16:35 Speaker 2
Fourth day, Emirates started flying to Bombay!
00:16:36 Speaker 1
Right.
00:16:37 Speaker 2
So, you got access to our side.
00:16:39 Speaker 1
Right.
00:16:40 Speaker 2
So, such things happen. What are we going to do if we don't have our own manufacturing facility here…
00:16:46 Speaker 1
Absolutely.
00:16:47 Speaker 2
…we must develop our manufacturing…essential products, we have to manufacture and we should have, we should support our manufacturing industry here.
00:16:54 Speaker 1
Absolutely. And that brings me to the post-COVID era. As you rightly touched on, the country wants to ensure that we have self-reliance, resilience, economic prosperity continuing into the future and companies like Ocean Rubber are at the forefront of the Make It in the Emirates initiative that we have here in the country. I'm curious what are the future plans for Ocean Rubber? Is there anything on your mind? I mean, Ma’ash’allah, you know, going on 25 plus years, you've achieved a lot, but what do you feel for the future of of ocean rubber?
00:17:30 Speaker 2
Now Ocean Rubber future we find in, erm…technically advanced products and services. For example, the commencement of rail system in the UAE, Etihad Rail, gave us opportunities. Etihad rail freight system from Ras Al Khaimah to Abu Dhabi - Ocean Rubber Factory is maintaining.
00:17:56 Speaker 1
Oh, OK.
00:17:57 Speaker 2
We have put up our engineers and technicians and they are on standby, you know, 24 hours.
00:18:02 Speaker 1
OK.
00:18:04 Speaker 2
So, now we when we hear we are going to build the rail from UAE to Saudi Arabia, yeah. And eventually to India. This is very, very exciting news for us…
00:18:14 Speaker 1
Right.
00:18:15 Speaker 2
…earlier times the rails, the railway has been running slowly, slow speed maybe 50 kilometers, below 100 kilometers per per hour. But now the era is of fast trains.
00:18:28 Speaker 1
Right.
00:18:28 Speaker 2
…bullet trains…
00:18:29 Speaker 1
Yes.
00:18:30 Speaker 2
So, the rail is only left rail and right rail…
00:18:34 Speaker 1
Right.
00:18:35
…so one station to other station, long long rail piece, continuous welding right at the railway tracks, so you cannot have normal rubber for this, right? You have to be high quality rubber developed by Germany and Japan, especially…this has to go and they ask for a long service life.
00:19:01 Speaker 2
So, we have already for our UAE bridges and Saudi bridges, we have already developed this.
00:19:07 Speaker 1
Right.
00:19:08 Speaker 2
Next time when you drive over a bridge, you hear the, the noise, ‘Ka-Da-Ka-Da’…
00:19:13 Speaker 1
Yes!
00:19:13 Speaker 2
Ocean Rubber is making this noise.
00:19:15 Speaker 1
No, really.
00:19:17 Speaker 2
I've always wondered. I thought it was the gaps and the and the hinges or something.
00:19:20 Speaker 2
Gaps, gaps we are filling with expansion joints…
00:19:22 Speaker 1
OK, OK, OK…
00:19:24
…just normally it's the minimum width is about 1 foot…
00:19:27 Speaker 1
OK.
00:19:27 Speaker 2
…two metre long.
00:19:28 Speaker 1
Yes.
00:19:29 Speaker 2
So, all the bridges, unless those are there, and the bridge will crack because the bridge has to expand when it is hot…and contract…
00:19:40 Speaker 1
Of course, that's the rubber that's there and the joints allow for that…
00:19:42 Speaker 2
Yeah, this is still steel and rubber…
00:19:43 Speaker 1
…expansion in the summer-time and then the retraction in the winter- time.
00:19:46 Speaker 1
Absolutely. This is steel and rubber, special rubber and we guarantee the service life of 60 years. Even my grandchildren will not get repeat business!
00:19:57 Speaker 2
But we never compromise on standards and specifications. That is another key is success, er, reason for success of ocean number fact. We never compromise on standards and specifications.
00:20:11 Speaker 1
That's fantastic. You know, it occurs to me, as you mentioned that you know, countries like Germany and Japan have the capability to manufacture such high-quality rubber as a raw material. Do you foresee that one day, Insha’allah, that kind of production of raw material could be here in the UAE?
00:20:32 Speaker 2
UAE absolutely we have the raw material already, yes, we have the, we only need to put up the manufacturing facility. So why not? Why? Why not UAE? Absolutely you must do and any kind of assistance coordination…
00:20:45 Speaker 1
Right.
00:20:54 Speaker 2
…required at our level, whatever small we can contribute, we'll be very happy and we'll be very excited absolutely.
00:21:03 Speaker 1
On sustainability, we've touched on a bit on the history of Ocean Rubber, the evolution of Ocean Rubber, how has sustainability played a role in your business over time?
00:21:16 Speaker 2
We have been cautious in selecting the technology.
00:21:25 Speaker 2
First of all, there is no waste….going into the environment from our side. The rubber waste is either re-sheeted or ground and used as a raw material again.
00:21:39 Speaker 1
Great.
00:21:41 Speaker 2
Another thing is that if you look at the map of satellite picture of any rubber factory, you'll find it filthy.
00:21:53 Speaker 1
OK.
00:21:54 Speaker 2
With a lot of fly waste…
00:21:56 Speaker 1
Dust and black dust?
00:22:01 Speaker 2
Yes, of black dust and things like that. After this interview, this conversation, please go to the satellite picture of Ocean Rubber Factory our mixing facilities in Ras Al Khaimah, Al Ghail.
00:22:11 Speaker 1
OK…
00:22:12 Speaker 2
It is not black…
00:22:14 Speaker 1
I'll definitely take a look. Yes, that's great.
00:22:17 Speaker 2
Because our feeding system is not by bags or dumper bags, it is actually sucking.
00:22:24 Speaker 1
OK, OK.
00:22:25
And we have silos, for the for the black dust and white dust.
00:22:31 Speaker 1
So everything is contained?
00:22:32 Speaker 2
Everything is contained and we put the workers with off white uniform so that we can see if there is any emission happening.
00:22:42 Speaker 1
Yes, yes, yes, yes. Fantastic. Fantastic.
00:22:45 Speaker 2
So, we are careful and in every possible way. We are constantly looking into, into the possibilities, how further is there any way we can improve further?
00:23:00 Speaker 1
Right, right. Well, I wish you all the success in the future, Mr. Noordeen. Thank you again for taking the time to speak with me and speak with Emirates development back today and we wish Ocean Rubber, all the prosperity and success for the future, Insha’Allah. Thank you so much.
00:23:14 Speaker 2
Thank you so much. Let's work together. You know, I wanted to add with thanks to Emirates Development Bank we are now going to start conveyor belt, steel-core conveyor belt, manufacturing in the UAE.
00:23:30 Speaker 1
Right.
00:23:30 Speaker 2
Already, Ocean Rubber is the only manufacturer of conveyor belts in the Middle East…
00:23:38 Speaker 1
Right.
00:23:39 Speaker 2
…there's nobody else…
00:23:39 Speaker 1
Right.
00:23:41 Speaker 2
But still core belt will enhance that capability and also will allow transport of bulk material in long distance…
00:23:53
Right.
00:23:54 Speaker 2
and also we are venturing into tyre manufacturing with your help with your support we start with low hanging fruits like solid tyres, then eventually we shall be going into, we shall be going into passenger trains and truck tyres as well. So, the combination of support from Emirates Development Bank is very, very important for us, for any industry here.
00:24:27 Speaker 1
Absolutely. Absolutely. That's what we're here for. We're here to support entrepreneurs, business owners, manufacturers like yourself who are creating fantastic products here in the UAE for the future of the country. So, it's much appreciated. And yes, Insha’allah, we will be with you every step.
00:24:41 Speaker 2
Of the way. Thank you so much. Thanks. Thanks for the, for the you know the cooperation and support.
00:24:48 Speaker 1
Thank you, Mr. Noordeen. Thank you again.
00:24:50 Speaker 1
Thank you.
00:24:51 OUTRO V/O
“Economic Impact. Conversations from Emirates Development Bank”.