Gulf Construction Online - SVCP to up capacity by 10pc in major revamp

Pipes

SVCP products ... used in sewer networks throughout the region.

SVCP to up capacity by 10pc in major revamp

01 August 2012

MAJOR developments are under way at Saudi Vitrified Clay Pipe Company (SVCP), which is set to ramp up its total capacity by 10 per cent shortly as well as boost its product portfolio with the acquisition of a GRP (glass reinforced plastic) and concrete pipe factories in Rabigh and Dammam in Saudi Arabia.

“SVCP has signed an agreement to acquire Acwa Pipe factories in Rabigh and Dammam for GRP and concrete pipes and expects to finalise this acquisition soon,” says Mahmoud Abu Jbarah, general manager.

SVCP expansion move ... 20,000 tonnes more to be added to capacity.

SVCP also intends to commission the expansion of its second vitrified clay pipe plant in Riyadh shortly. The plant, which started production in early January 2009, has already been expanded twice since then to increase its capacity from 70,000 to 100,000 tonnes.

SVCP began commercial operations in the late 1970s with an annual capacity of 24,000 tonnes. However, following a series of expansions, its capacity was pushed up to 200,000 tonnes of vitrified clay pipes in sizes ranging from DN 100 to 1,200. The latest expansion, which has been launched to meet the surging demand in the market, will see another 20,000 tonnes added to the company’s existing capacity, he says.

“The SVCP brand is well known due its quality, superiority, compatibility and dependability and because of the constant services offered to all customers, allowing them to move forward with their projects free from worries regarding timely supplies of quality pipes produced to international standards,” says Abu Jbarah. “Besides, this also allows our customers to spread their orders over the project period without fear of currency fluctuations or price inflation.”

In line with its commitment to ensure customer satisfaction, the company offers a range of incentives. “We offer customers the opportunity to add, cancel or amend any item that might be required during the project period or might change due to design issues. That is not all; we also allow the return of surplus material, if any, to ensure lower costs and cash flow management throughout the project.

SVCP brand ... well known for quality, superiority, compatibility and dependability.

“We believe that all our customers value these facilities and count on them all the time. We are ready to go the extra mile to ensure the satisfaction and loyalty of our customers. In short, we are proud to serve our valuable customers,” he adds.
The company’s vitrified clay pipes are used in gravity sewer and storm drainage networks and supplies have been made both to local and overseas projects.

“SVCP has been involved with a number of sewerage, road and housing projects across Saudi Arabia and other GCC states as well as Egypt, Yemen, Sudan, Jordan, the Far East and Europe,” says Abu Jbarah.

He adds: “Sewer network projects worth billions of riyals and extending thousands of kilometres of pipes in Saudi Arabia and the GCC have been supplied by SVCP for years without interruption or delay, allowing projects to remain on schedule according to the plans laid out by governments.”

In 2011, SVCP exported approximately 23 per cent of its production and its aims to reach 30 per cent this year.

“SVCP has been exporting its products to international markets since 1986 and has maintained exports till date. However, due to the volume of local projects, the company has given priority to serve the domestic markets in the kingdom the GCC,” says Abu Jbarah.

“Nevertheless, SVCP is keeping an eye on other international markets, hoping to be able to continue serving these markets and increasing its share after boosting capacity through its ongoing expansion within this year,” he adds.
Commenting on the Saudi market, he says: “The infrastructure and construction market in Saudi Arabia is particularly strong with government investing enormous amounts of money in new industrial cities as well as on bringing existing infrastructure up to the required level of quality and modernisation.

“At the moment, only around 50 per cent of the country is covered by a sewer system. So the government is investing a lot of money to cover the whole kingdom within the next 10 to 15 years. We have increased capacity at our factories to cater to the demand we anticipate.”

Abu Jbarah says the company’s goals include hiring more Saudis, providing the best training and work security to all its employees, and ensuring the loyalty of its staff and customers – which would reflect positively on the results and success of the company’s operations and reputation.

SVCP’s total sales last year were SR261 million ($69.5 million) with exports at SR60 million ($16 million) against 2010 sales of SR244 million ($65 million) and exports of SR34 million ($9 million).