With Saudi Arabia’s construction sector set to witness 10 per cent growth to reach a total value of $44 billion in 2015, the Kingdom’s aluminium demand is also projected to surge, peaking at $1.44bn over the next four years.
In view of this, the
Aluminium Products Company (Alupco), a Saudi-based top producer of extruded and surface treated aluminium products has also increased production of its materials, with special emphasis on innovative green products, aimed at moving in tandem with a sector that is increasingly moving towards a sustainable future.
In an exclusive interview with Alrroya.com ahead of the forth coming
Aluminium Dubai Exhibition, Abdul Aziz Al Ghamdi, a senior director of Alupco said that the company is braced and well positioned to cover the Kingdom and the wider Middle East and North Africa (Mena) countries, as the region experiences an unprecedented growth in building and construction activities.
“As aluminium producers, we like to move with the trends in the market,” Al Ghamdi said, adding, “Currently there is huge demand for products that are geared towards a sustainable future, and at Alupco we have committed ourselves to be part of the solution for a sustainable global economy of the future,” he added.
Demand for fabricated aluminium to rise
Aluminium metal does not rust and is 100 per cent recyclable. It comes in a variety of surface finishes and can take many forms, allowing its use in a vast array of products.
Al Ghamdi said that apart from producing materials used in construction, Alupco also provides raw materials for the fabrication of many products in other sectors, including specially designed profiles in hard alloys for the automotive industry, unique profiles in various shapes and alloys for the electrical and furniture sectors, wide varieties of profiles for decorative purposes and specific applications in facilities such as helipads, signboards and crash barriers.
“I believe that the aluminium industry’s focus on construction business is logical, yet a short term solution and must be developed into none construction related utilisation of the metal. Manufacturing of automotive parts is another area that should have its share of the industry development focus,” Al Ghamdi advised.
“In brief, the creation of downstream business to contain and produce value added products of the smelters output is the key driver of the regional economic growth and prosperity in the field of the aluminium industry,” he added.
According to a recent report by
Ventures Middle East, demand for fabricated aluminium products in the building construction sector is expected to increase at a compound average growth rate (CAGR) of nine per cent from $920m in 2010 to $1,442m in 2015.
“The demand in volume is expected to increase at a CAGR of 10 per cent, from 5.4 million metre sq (and 249,000 linear metres for kitchens) in 2010 to 8.4 million metre sq (and 377,000 linear metres) in 2015. Products with the greatest aluminium demand by value are: windows, 33 per cent; curtain walls, 17 per cent; and cladding, 17 per cent, and figures show that aluminium demand by volume is highest for windows, 35 per cent; cladding, 24 per cent; and curtain walls at 15 per cent.”
The report also notes that the value of the Kingdom’s construction sector is expected to increase from $27bn in 2010 to $44bn in 2015, witnessing a CAGR of 10 per cent.
“Total building construction spend is estimated to be $217bn – excluding projects on hold,” it adds.
Here in the UAE, Alupco was the principal supplier of extrusions for major landmark projects including the iconic Burj Al-Arab Hotel, Al-Murooj Complex, Jumeirah Beach Residence (JBR) and Mall of the Emirates. It also left a mark in Kuwait City, at the Telecommunication Tower, Al Areen in Doha, Qatar, the National Bank of Bahrain in Manama, Bahrain and at Beirut Marina Tower in Lebanon.
Alupco eyeing aggressive expansion strategy
The company’s head office and Dammam plant are located in the First Industrial City (Eastern Province), while a second plant is located in Jeddah Industrial City – Phase II (Western Province). It also operates sales offices in Riyadh and Dubai.
“We are continuously expanding our networks to cater to the needs of all our customers based in Saudi Arabia and the greater Mena region,” Al Ghamdi said.
Apart from the Saudi Arabian market which accounts for almost 70 per cent of Alupco’s total annual sales, large quantities are being exported to GCC States, including the UAE, Kuwait, Qatar, Bahrain and Oman. Other countries are Syria, Lebanon, Jordan, Yemen and Palestine. In Africa, the company has tightened its tentacles in Egypt, Algeria, Morocco, Sudan, Mauritius, Senegal, Kenya, Ghana and Mauritania, while its exports to Europe are mainly in the UK, France and Germany. It also exports its products to some countries in South America and in Asia as well.
Alupco has consistently ranked among the ‘Top 100’ companies in Saudi Arabia for the last ten years, and the executive says that the company’s continuous policy of faster adaptation and innovation has given the company a competitive edge over other producers.
“Being highly rated has not come cheap to us. We always strive to provide superior aluminium products backed by excellent services that enhance the competitiveness of our customers and partners and their ability to succeed,” added Al Ghamdi, while crediting the company’s successes to “the dedication of our workforce and the support of our suppliers.”
‘Aluminium Dubai’ exhibition set for May 9 – 11
An engineering graduate from the University of the Pacific Stockton, California, 37-year-old Abdul Aziz Al Ghamdi is also pursuing his Master in Business Administration at the University of Wales. He worked for five years at the Procter and Gamble Company before joining Alupco in 2003 as the Damman Plant Manager, where he worked his way up the ranks to his current position as Materials Management Director, in charge of logistics and supply chain of the company.
Alupco is a member of the
Aluminium Extruders Council (AEC),
Aluminium Anodizers Council (AAC) and a key member of the
Gulf Aluminium Council (GAC), agencies that promote the standards, development and promotion of wider use of the valuable metal.
Al Ghamdi says that being associated with these councils “ensures that our products quality is uncompromised and trusted, thus further helping us to strengthen our leading position in all markets by ensuring continuous growth for the benefit of the shareholders and the society.”
The business opportunities arising in the aluminium market in Saudi Arabia will be discussed at the forthcoming aluminium trade show dubbed ‘
Aluminium Dubai Exhibition’, which brings together industry players drawn from regional and international suppliers, customers and investors from both government and the private sector.
Set to take place in Dubai from May 9 to 11, 2011, the exhibition aims at providing the best use of business opportunities offered by the region’s high-growth market, while exposing them to the latest technology and concepts in the aluminium industry, organisers say.
“Demand for aluminium in Saudi Arabia continues to surpass the global level, which has been growing at around six per cent per year over the past decade,” said Tarek Ali, the Show Manager of
Aluminium Dubai Exhibition.
“At the upcoming exhibition, industry players will be able to get deep insights into Saudi Arabia’s high potential market for aluminium.”
Consider also reading:
Saudi construction market defies sceptics, rumbles on
Rental rates in Jeddah, Riyadh soar on high demand
Holy Cities key to Saudi Arabia’s realty growth
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