US-based technology firm Katerra and offsite manufacturing company KEF Infra announced a merger that will significantly expand their combined geographic reach, manufacturing capacity, and market expertise.
The newly created venture has more than $3.7bn in bookings at this time across North America and India and is looking to expand in the Middle East.
Announcing the merger, Faizal Kottikollon, founder and chairman of KEF Infra, said: “I am very excited by the prospects of this strategic alliance. We look forward to breaking new ground with a like-minded team, particularly in the Middle East because government support has led to burgeoning investment opportunities, making this region a potential growth market for KEF Katerra. We will also expand our footprint to other geographies in India beyond our current markets.”
Michael Marks, chairman and co-founder of Katerra, added: “We are thrilled to merge with KEF Infra, a company that is truly a disruptor. It’s incredible to discover a team so aligned with our values and vision.”
Both companies employ a vertically integrated model, offering end-to-end building services enhanced by design, technology, and offsite manufacturing. The vertical integration of all disciplines from architectural design, structural design and engineering, MEP and finishes and overall project planning and execution will allow for integrated project delivery, which is lacking in construction today. In addition to addressing housing needs, KEF Katerra will be actively engaged in building critical infrastructure such as hospitals and schools.
Founded in 2014, by Dubai-headquartered holding company KEF Holdings, KEF Infra utilises robotics and automation in its advanced manufacturing operations to deliver high quality building projects quickly and efficiently. The company currently has 1,400 employees and factories in Krishnagiri and Lucknow in India. The merger will enable KEF-Katerra to bring world-class pre-cast concrete technologies to the US market, greatly expanding design and materials options for its Katerra’s clientele. At the same time, the move will strengthen the global supply chain and enhance manufacturing processes in existing KEF markets.
Katerra currently employs more than 2,000 people with operational factories in Greater Phoenix, Arizona Glendale, Arizona and Shanghai, China. Once the merger is complete in Q3 2018, the company will have over 3,400 employees, with a global footprint of 20 locations in the US, China, India, Mexico and the Middle East.
Video: KEF Infra reveals the advantages of off-site construction