Gulf Construction Online - T Nagadi expands to meet demand

Pipes

Well stocked ... reinforced concrete pipes manufactured by T Nagadi.

T Nagadi expands to meet demand

01 August 2012

FOLLOWING the recent expansion of its Riyadh production facility, T Nagadi Preformed Concrete Factory is set to launch production at new lines to produce pipes at its Yanbu factory.

The company is setting up three units to make pipes in diameters ranging from 300 mm to 3,600 mm in Yanbu. The new machinery has arrived and installation is expected to be undertaken this month (August), to allow the plant to be operational within two months, according to a spokesman for the company.

Also coming up are two plants to make manhole products in Yanbu.

T Nagadi recently installed in Riyadh a plant to produce pipes of inner diameter of 300 mm to 2,000 mm and another plant to make manhole systems.

T Nagadi, owned by Tarik Mohammed Ibrahim Nagadi, makes pipes, sewer manhole items with various linings, telecommunication manhole products, interlocking pavers, masonry blocks, cable tiles and precast fence walls, among other products. Currently, reinforced concrete pipes and sewer manhole products account for more than 70 per cent of sales with the rest coming from other precast items.

Its current annual output is around 200,000 sq m from factories in Riyadh, Yanbu and the Yanbu Royal Commission area.

“Anticipating larger orders in coming months, the company has embarked on a major expansion,” says the company’s spokesman.

Following a downturn in business last year, T Nagadi expects to turn the tide this year with far stronger sales and big orders.

“The company made a good start in 2012 reporting first-quarter sales of SR65 million ($17.3 million) and could notch up a year’s figure of SR260 million ($69.32 million) if the same tempo is maintained,” he says.

It had suffered a setback in 2011 when sales dropped to SR184 million ($49 million) from SR215 million ($57.32 million) in the previous year, a situation it attributed to cut-throat competition and virtual dumping by rival firms.

Box culverts ... produced by T Nagadi.

With expanded production, the company will be able to accept orders for large volumes. Current capacity is helping meet requirements from orders won in recent months. By the end of April, the company had received orders worth SR101 million ($26.93 million), the biggest of which was for a Saudi Water Conversion Corporation (SWCC) project and worth SR25 million ($6.66 million).

The company is also currently working on a Hail University project and two Ministry of Electricity and Water schemes in Taif and Riyadh, each worth SR20 million ($5.33 million). In addition, it has an ongoing project for the Ministry of Commerce worth SR16 million ($4.26 million) and several other projects for installing sewer manhole systems and jacking pipes.

Meanwhile, T Nagadi is currently in negotiations for a major project in Makkah worth SR52 million ($13.86 million) for the supply of manholes and inspection chambers.

The company, which has no international collaboration for manufacturing, is a member of the Jacking Pipe Manufacturers Association, England. It locally sources 90 per cent of the raw material it requires for its processes including steel, cement, sand, aggregates, chemicals, lining material and collar plates. Spare parts, steps and cast iron frames and covers not freely available in the Saudi market are imported.