Gulf Construction Online - Cutting edge

Abrasive Technology Industries

The factory ... occupying 12,750 sq m and producing 12 million pieces.

Cutting edge

The Nass Group’s ambition to enter the manufacturing sector and its close family ties with Shaheen Group has led to the region’s first sophisticated cutting and grinding wheel facility.

01 November 2010

A NEW state-of-the-art factory specialising in the manufacture of high-quality abrasive resin-bonded cutting and grinding wheels has recently begun operations in Saudi Arabia.

Abrasive Technology Industries (ATI), a $10-million joint venture of the Nass Group and Shaheen Group, is believed the first sophisticated facility of its kind in the Arabian Gulf.

The company’s origins can be traced to the Bahrain-based Nass Group’s desire to diversify into the manufacturing sector, under the chairmanship of Abdulla Ahmed Nass.

The group, which has been trading with cutting and grinding wheels through its subsidiary Nass Commercial, was frequently experiencing problems relating to the availability of materials and the quality of imports – hence the decision to manufacture these abrasives.

At the factory ... (from right), Sameer, Sager, Abdulla, Jawahar and other officials.

A shrewd business sense combined with the camaraderie of two friends – Sameer Nass, group managing director of Nass Group and Sager Shaheen, chief executive of the Bahrain-based Shaheen Group – provided the right ingredients for a successful venture that has set its eyes on the huge potential market not just of the region but the entire globe.

Underpinning this venture is also the belief that the factory – thanks to its exceptionally high quality standards – will be chosen as an OEM (original equipment manufacturing) manufacturer for Hilti, a global provider of construction solutions, in the region.

The fully-automated factory occupies a 12,750 sq m site in Dammam’s Second Industrial City and has an annual production capacity of 12 million pieces of cutting and grinding wheels – or discs – for both portable and fixed machines.

These are produced under the ATI Swords brand name and are produced as per EN 12413 standards for safety. The factory can currently produce cutting wheels in sizes ranging from 100 mm to 400 mm and grinding wheels, from 100 mm to 230 mm in size. This apart, ATI also offers thin wheels – 1 mm thick – which are a specialty product.

Visionary leaders ... Abdulla and Sameer (below).

“The Swords brand provides superior performance in the most stringent working environment through a longer life wheel that gives the shortest cutting cycles. We ensure high quality at the lowest cost possible,” says Sameer.

ATI’s focus on quality has already earned recognition: within three months of launching trial production in April, the factory achieved ISO 9001:2008 certification accredited by Rina of Italy, according to Bashar Sameer Nass, the director at ATI.

The company has now applied for Saudi Arabian Standards Organisation (Saso) certification as well as for approval from OSA (Organisation for the Safety of Abrasives) and Saudi Aramco, he adds.

Long-term plans include obtaining OHSAS (Occupational Health and Safety Advisory Services) certification, according to ATI’s general manager C Jawahar, who has been utilising his 20 years of experience in the abrasives field to press ahead with the project over the past two years.

The factory has a built-up area of 4,500 sq m, comprising an administration building, production facilities – which includes an environment-controlled area for mixing and moulding – a warehouse, and a cold storage area for special chemicals.

The pre-engineered steel building (PEB) that houses the facility was erected by Building Establishment for Specialised Construction, a Kirby-certified builder.

ATI is currently operational and is producing up to 60 per cent of capacity per shift, which amounts to 30,000 discs per day, after trial production started in April, according to Sager Shaheen.

He says it will probably take about a year or less to go into full operation. Until then, the focus is on manpower training, raw materials and other production aspects. “Probably by the beginning of next year, we will be in full capacity production for one shift. We then can go into two-shift production,” he adds.

A single full-shift production, requires around 60 to 65 people, who all need to be well-skilled, he says, adding that the company has also focused on Saudiisation. “About 20 per cent of our staff is Saudi. We train them and develop their skills.”

ATI has a technological tie-up with Italian firm Grandinetti, which has more than 40 years of experience in the abrasives sector. It is equipped with machinery that has been procured from two of the leaders in their respective field of specialisation: Maternini of Italy (building abrasives machines) and Nicem (curing ovens).

To ensure the highest quality of production, ATI sources its raw materials from reputable manufacturers worldwide, including from Austria, Italy, Germany and India. Its quality and research and development (R&D) departments are well equipped to ensure and maintain the highest standards and the continuous research and development of quality and high-performance products.

Environmental safety has also been a key criterion for the company, which has passed the scrutiny of Saudi Arabia’s Environmental Ministry.

Machinery has been acquired from market leaders in the business.

ATI currently has a staff strength of 44 but this figure is expected to rise to 100 once the facility is fully operational, working round the clock in three shifts.

“ATI’s vision is to be a hub for international abrasives trading, operating from Saudi Arabia,” Sameer continues. “Our goal is to produce and develop abrasive products that provide effective and efficient solutions for various fields and levels of industrial and construction applications, and have the flexibility to customise our products and logistic services. ATI will provide abrasive products for local and international customers.”

“We will offer the market easy access to a local supply of quality products at a competitive price. With the availability of a local manufacturing source, dealers do not need to maintain a large stock of these products, thus reducing inventory costs,” he says.

“We are striving for consistency in product quality, on-time delivery, innovation, cost-effectiveness, continuous upgrade of technology and techniques and training our manpower,” Jawahar comments. “We aim to establish a model company in the GCC, with our eyes firmly set on becoming a Six Sigma company (defect-free operation), and thereby eliminating wastages while ensuring higher profitability. We also focus on employee satisfaction.”

Jawahar

He commends the bold step taken by the Nass Group in going ahead with the project in the face of the global financial downturn. This strategic move has paid dividends as the project has derived the benefits of lower construction costs, he states.

Jawahar believes that the market potential for ATI’s products is immense, particularly in Saudi Arabia where numerous projects are being launched.

“The range of applications for our products is vast – anywhere steel is used our products will be required, be it in the construction or industrial sectors and even in the construction of railways,” he says.

Some 80 per cent of its output is expected to be absorbed by the engineering sector of the region. Demand for these abrasives is such that the company is targeting just five per cent of the GCC’s market demand, Jawahar points out.
The applications vary from simple cutting to more sophisticated fabrications such as pipelines, pressure vessels, tanks, gates and structural members. All these applications require welding. Grinding wheels are used in preparations of welding joints, which are typical on structural projects such as pipelines, petroleum plants and their maintenance and construction sites, he explains.

“Chemical plants are primary demand drivers for grinding wheels. Other application areas include building and construction; medium and small engineering units involved in steel fabrication; manufacture of automotive units such as trailers, tankers and tippers; foundries producing castings; and dry docks and ship-repairing facilities.”

Quality products ... ATI has already achieved ISO 9001:2008 certification.

The response to the company’s products has been very encouraging, with customers requesting for a demonstration, which is performed either at the ATI factory or at the customer’s site. “Everyone who has tried our product has been satisfied. Today we have a fantastic product of very high quality and I can tell you that in the last few weeks, everybody we brought in to try it changed to our product. All this is very positive,” Sager says.

ATI’s current major clients include Saudi Group for Construction Materials, Zamil Steel, Saudi Scaffolding Factory (SSF), Marine Industrial Services (MIS) Arabia, Abdullah H Al Shuwayer Sons and Qatar Group for Construction Materials, many of whom have expressed satisfaction with ATI’s products.

“Earlier it used to take more than a month to get our requirements for cutting and grinding wheels, now takes less than a week to have a full container order. Trading is easier now and there is no stock shortage,” says Dr Ali Dayek, president of the Saudi Group.

The focus is being laid on manpower training.

Another satisfied customer, Abdul Mohsin Al Abdul Karim from Zamil Steel, says: “Now I can reduce my stock investment, I simply order my weekly needs knowing that I’ll get it the same ordering day.”

“The good thing is to get a national product that is truly competitive with the European brands for a much lower price and, in some cases, better quality,” says Fred, purchasing engineer, Abdullah H Al Shuwayer Sons.

The company has already started selling in Saudi Arabia, Kuwait, Bahrain and Qatar, achieving good sales in the last two months. In fact, the second order was from Qatar.

A substantial volume of its production also goes to meet the requirements of the Nass Group.

To ensure effective market penetration, the company is looking at appointing a dealership network to cover the entire region.

“We intend to set up a marketing office in Dubai by the end of this year and are in the process of establishing dealerships in Oman and the UAE,” Jawahar says. “We are looking at Dubai as a re-export destination. Dubai gets regular buyers from the African continent and from Iran and Iraq.”

ATI also plans to take part in most of the regional exhibitions to get maximum exposure. It will be at The Big 5 show in Dubai (in November) and exhibitions in Saudi Arabia next year. It has also booked space at the Gulf Industry Fair to be held in Bahrain next February. “You will definitely see us in many exhibitions,” says Sager.

Although a nascent manufacturer in the region, ATI already has set its goals on expanding its product portfolio to include coated abrasives and eventually to even producing the raw materials such as the resins and aluminium oxide that go into making the products, Jawahar concludes.