Mada Gypsum Company, which launched production of gypsum products earlier this year, has already chalked out an ambitious growth strategy to catapult it to the ranks of the region’s largest producers of gypsum products.

The Saudi-based company manufactures and supplies gypsum products including gypsum powder (plaster) and gypsum boards (plasterboards) which are in constant demand for decoration and finishing works in most building and construction projects, says Bassam Samaan, sales and marketing director.
Part of the Mada Group for Industrial and Commercial Investment, the investment vehicle of the Riyadh-based Al Rajhi Investment Group, the company was set up at the end of 2005 under a total investment of SR130 million ($34.7 million) and began commercial production this year.
While its general management and production facilities are located in Yanbu Industrial City in the Western Province of Saudi Arabia, its sales and marketing management team is based in Jeddah. The company has about 100 employees and anticipates a turnover of about SR50 million ($13.3 million) for this year.
“Our present production capacity of gypsum powder is 150,000 tonnes per year (tpy) but with our expansion plans, it will be 390,000 tpy and 790,000 tpy by September 2009 and March 2010 respectively,” Samaan says.
Gypsum powder is widely used in the moulding of decoration items, production of plasterboards, wall plastering, fixing of plasterboards and other plaster items on concrete and cement walls, used in the composition of various types of high-quality ceramic, and can also be used as a protection layer for ceramic and marble tiling works, he explains.
“We have adopted an advanced production technology based on ‘indirect heat calcination’ which results in products of superior characteristics in terms of fineness, rigidity, purity and whiteness.”
Turning to plasterboards, he says: “We have annual production capacity of 10 million sq m of Mada plasterboards, which will be expanded to 34 million sq m per year by next September and then 84 million by March 2010. Plasterboards are used mainly to make partitions, false ceilings, wall linings and many other decoration works.
“Mada plasterboards are distinguished by their durability, good finish and ideal weight. In addition, we offer a comprehensive choice of thicknesses and types of boards.”
In line with its commitment to the environment, Mada Gypsum has deployed the best systems and technologies, thus reducing the direct exhausted gases emitted from its kilns. Apart from using the indirect heating system – which is the latest advanced technology in the gypsum industry – to produce gypsum powder, the firm uses cardboard, which made from recycled paper, in the production of plasterboards.
Commenting about the expansion, he says: “In the first phase of expansion of our plasterboards production facility, our capacity will rise from 10 million to 34 million sq m per year. We have already signed with the reputable international firm Gyptech to supply and install the factory in Yanbu. We expect the production line to be operational by end of the third quarter of 2009.
“The first phase of expansion of the gypsum powder facility will see our capacity increase from 150,000 up to 390,000 tpy. We have awarded a contract to the renowned firm Claudius Peters to supply and install the factory in Yanbu, which is expected to come on stream also by end of the third quarter of 2009.
“In the second phase of expansion, our plasterboards production capacity will surge from 34 million to 84 million sq m per year, while our gypsum powder production capacity will rise from 390,000 to 790,000 tpy.  Phase two entails the installation of production lines in Riyadh, which are scheduled to be completed by end of the first quarter of 2010 – one for gypsum powder with an installed capacity of 400,000 tpy and the other for plasterboards with a capacity of 50 million sq m.”
Recognising the importance of the Big 5, Mada Gypsum will be making its debut at the show to further its ambitions in taking its products to markets across the GCC.
“The Big 5 show is important both in the Gulf and internationally. As we are gearing up to be one of the largest producers of gypsum products in the area, we need to introduce ourselves to potential buyers in the Arab and other neighbouring countries. The Big 5 show provides an ideal place to pursue our goals due to its huge size and the large numbers it attracts.”
Although the company has started production just during this year, it reports “very good business” in the Saudi as well export market.
“Technically and commercially, we have received an excellent feedback from the market,” he comments. “We are one of six producers of gypsum powder and one of two producers of plasterboards in the Saudi market. Due to our advanced technology and streamline operations, we expect to acquire a high percentage of the domestic market for both products and can report that have touched our planned figures.”
Mada Gypsum’s sales are mainly channelled through its distributors and building materials traders in the region who supply contractors.
Some of the projects where its products have been supplied are: the King Abdullah University in Thawal in the Western Province of Saudi Arabia for Binladin Group, the main contractor; King Abdullah Economic City in Rabigh also in the Western Province; and Abraj Al Bait, Makkah for the Binladin Group. Outside Saudi Arabia, its products have gone to Bahrain City Centre and Abraj Al Lulu, both in Bahrain; the QR200 million Barwah housing project in Qatar; the Australian Embassy and engineering projects in Amman and Jordanian University at Erbed, all in Jordan.
Commenting on the GCC market, he says: “The GCC countries are experiencing a massive boom, which is expected to continue for the next decade, giving rise to huge economic cities, high-rise towers and several kinds of construction projects. We see great potential for growth in the GCC, where our main markets will be Saudi Arabia, the UAE (especially Dubai and Abu Dhabi), Qatar and Bahrain.”
Mada Gypsum Company will be present at Stand ZG 57.