The journey to sustainable success
In June 2024, we get to know Eric Widström, Chief Executive Officer of Terraco Group, a second-generation family business dedicated to producing environmentally friendly, European-quality building products for the construction industry. Eric's journey to Dubai is intertwined with his family's pioneering spirit, beginning with his parents' adventurous move to the Middle East in the late 1970s. With a rich background that spans multiple countries and cultures, Eric has played a key role in steering Terraco towards sustainable and innovative growth, as he balances his responsibilities overseeing global operations with leading the local UAE company.
Terraco was established in 1980, and is a leader in the design, formulation and production of environmentally friendly finishing materials, performance products and systems for the construction industry. They provide innovative, green solutions from 20 factories across the globe to customers in over 75 countries. Read more here.
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Who is Eric Widström and what brought you to Dubai?
Eric Widström, Chief Executive Officer of Terraco Group
Terraco is a second-generation family business focused on producing environmentally friendly, European quality, building products for the construction industry and we typically concentrate on emerging markets with high expected growth rates.
My parents originally came to the Middle East when my father – after working with exports from Sweden – accepted a position to help create a commercial section at the Swedish Embassy in Saudi (in those days in Jeddah) to promote Swedish business in the region in the late 70’s. This was after the Embassy in Beirut, which historically had done this, closed due to the Lebanese civil war. An amusing story, which I think exemplifies my parents, was that though they were still unmarried when my father was offered the position, they quickly decided it was an opportunity they should seize and got married on short notice in a snowstorm to allow them both to travel to Saudi. They then celebrated their honeymoon in a newly purchased Volvo which they drove for 21 days from Sweden to Saudi – something most people said was risky, if not impossible, at the time almost 50 years ago. This pioneering spirit is still deeply engrained in the company which they subsequently founded in 1980, and in our family. What this meant from a personal point of view was that while I was born in Sweden, I spent most of my childhood abroad. I grew up in Cyprus, where the business was headquartered for many years, and later spent several years in Turkey.
The family moved back to Sweden in the early 1990s, as my parents felt my sister and I could do with putting down some Swedish roots. After completing gymnasiet in Sweden, I attended St Andrews University in Scotland, where I graduated with an MA with Joint Honours in Management and International Relations. I then joined the family business as the company was embarking on several exciting projects in new markets at the time. About a year after my joining, in 2004, we decided to relocate administrative head office functions to the UAE (although we have been selling products here since 1982 and producing here since 1991), which is how I ended up in Dubai. I met my wife, Lara, here in 2008 and we have a son, Axel, turning 5 this year. This year I will have been living in Dubai for 20 years, which feels a bit surreal. This is home now; the family is very happy here and we have no plans to leave any time soon.
Could you elaborate on the responsibilities and functions associated with your position as CEO of Terraco?
Inauguration of the Terraco Korea "Elephant Factory" together with Terraco Korea team and Nina & Göran Widström
As CEO I am responsible for our global operations, working closely with our General Managers and the Group Management team. We have an excellent and dedicated team, many of whom have been with us for decades. Daily management of operating units is handled by the local management teams, but I get involved in complex issues and strategic decisions, as well as corporate matters, control functions and group business development. We have 20 factories in 12 countries and a headcount of about 1,000 people, so there’s always a lot going on and problem solving is part of the daily routine. In addition, as I am based in Dubai, I also serve as the General Manager for our UAE operations, with about 150 employees. It can be a bit challenging to have many direct reports, but our fantastic managers and teams here help me manage both roles effectively.
Customer visit with Terraco Algeria team.
With over two decades of experience at Terraco, what are some of the major developments and trends you’ve encountered within the construction industry?
Visit by H.E. Björn Häggmark Swedish Ambassador to Algeria to Terraco Algeria stand at Batimatec.
It’s been interesting and encouraging to follow the industry's increasing commitment to sustainability over the years. This is something which has always been close to our hearts in Terraco, but it’s great to see to see that awareness has increased among all stakeholders. Industry action is becoming increasingly proactive and as a company we continuously invest into developing initiatives, systems, and solutions to ensure we stay at the vanguard and which help support this critical mission. We have around 1,000 environmentally friendly products in our overall product portfolio, but each country will have a tailored range depending on market requirements, climate, construction culture etc. But as an example, our class-leading certified External Insulation and Finish Systems (EIFS), which can help reduce energy consumption by up to 50% in buildings, is an area we put a lot of pride and focus on. We were the first company to offer this certified system in the UAE. Another important trend which we engage with closely is new and modern construction techniques - which can reduce cost, improve quality, mitigate waste, and save time. This includes everything from modular and offsite construction, light-weight steel frame, pre-cast as well 3D printed construction, which is still at a nascent stage but developing rapidly.
What are your professional aspirations?
I look forward to challenging myself and the company to accelerate our growth and expanding our market presence while staying true to our unique culture and values, which are inherently Swedish. An example of one of these values is the fact that our Group has always been free of debt. As a self-financed, privately held company we are able to follow trends and take long-term investment decisions which we know have great potential, but which may take time to bear fruit. We are busy finalising an ambitious 2030 strategy, when Terraco will celebrate its 50th anniversary, and we have a few exciting projects we are working on this year which will help us on this journey. Watch this space!
Visit at Terraco UAE, by H.E. Fredrik Florén, Ambassador of Sweden to the UAE
After 20 years in the UAE, what do you miss the most about Sweden?
While it’s difficult to complain about 300 days of sunshine a year, at times I miss Swedish nature and the visible changing of the seasons. It’s always a treat to go back to Sweden to spend some time, which we are fortunate to do every summer.
Thank you Eric for sharing your story with us! We wish you all the best!
Eric Widström, Chief Executive Officer, Terraco Group
Email: enquiries@terraco.com
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