SAUDI-BASED Arnaout Contracting Establishment (Arcon) describes the Alabniah Precast factory as one of the most interesting and challenging of projects that it has recently undertaken.
As main contractor of the unique automated high-technology precast factory project in the Eastern Province, the company was charged with the responsibility of completing it on a fast-track basis and started work even before the designs were finalised.
Work on the project started in April last year, following the award of the contract in February, with completion targeted for May this year, says Ramzi B Shami, general manager of the Al Khobar-based firm.
The project comprises a batching plant, precast factory producing a variety of elements and pre-fabricated wire mesh, an office building and support facilities such as a water treatment plant building, generator building and synchronisation panels building.
The scope of Arcon’s contract included the construction of 30,000 sq m of buildings and 82,000 sq m of storage yards as well as roads and architectural, civil, mechanical and electrical works. It also entailed the groundwork for the installation of machinery.
Detailing the challenges involved in implementing the project, Shami says: “The main challenges of the project were the limited time-frame allowed, the high precision levels set for the machines and the high construction specifications.
“The sophisticated design of this fully-automated precast factory called for absolute precision with extremely low tolerance allowed for the fixing and installation of hundreds
of tonnes of structural steel inserts and embedment.
“The heavy concrete foundations, the complex work involved and the accuracy required in the installation of the electrical system made this a demanding task. We tackled the fast-track schedule of this project with first-class construction management techniques supported by more than 400 men on site at the peak of construction.”
“With this project, Arcon has demonstrated its ability to work in parallel with the designer and several international specialist consultants even before the final design drawings are completed and also to accommodate a large number of changes and execute them on time,” he emphasises.
Arcon, established in 1992, is a general contractor specialised in all kinds of concrete and steel structures. It is also one of the biggest certified builders of Zamil Steel. In addition to providing total design/build solutions, Arcon focuses on quality jobs with demanding schedules.
“Our main goal is to provide quality services for all our clients and excel in our endeavours,” Shami says. “Arcon is proud to have been the main contractor on Alabniah Precast Factory project and to enjoy a very amicable relationship with its owner Adraj Holding Company. This project has provided us with a wealth of experience in construction management and high technologies related to production lines in heavy industry. The European suppliers and installers of the heavy machinery are working hand-in-hand with our crew to deliver a quality job that we are all proud of.”
Alongside the Alabniah Precast Factory project, the company is currently handling contracts having a cumulative value of SR750 million ($200 million), all of which are scheduled to be completed by April next year. Its major clients include Saudi Aramco, Schlumberger, Baker Hughes, Weatherford, General Electric, Ali A Tamimi Group of Companies, apart from Adraj Holding Company.
Arcon saw its turnover double last year compared to figures achieved during 2007. Despite the global financial crisis, Shamsi believes the company is in a very secure position with the business it has in hand, “but like everyone else, we believe that 2009 should be the year of increased efficiency and decreased cost”.
Referring to the global economic downturn, he says: “While the financial crisis has affected everyone, we are lucky to be in Saudi Arabia, which is one of the countries that have been least affected by it. As far as Arcon is concerned, the business we have in hand will see us through to mid-2010 without any problem. At the same time, we feel we are well placed to keep receiving invitations to bid from our many loyal clients as well as from new ones.”
With Arcon’s total confidence that the effect of the financial crisis on Saudi Arabia will be short-lived and manageable, the company is planning with confidence for the post-crisis years.
“For this reason, we are increasing our marketing efforts and are trying to reach new clients in the industrial and the oil and gas sectors. In-house, we are improving our technical and professional services by upgrading our operating system to handle more tasks, thus increasing our efficiency. We are also investing in new blood in terms of directors, managers and senior project managers while keeping abreast with the latest developments and technologies involved in construction management,” Shami says.
In addition to its facilities in Saudi Arabia, Arcon opened a construction branch in Abu Dhabi last year.
“We are already building a project for Weatherford in Industrial City of Abu Dhabi 2 (Icad 2),” he says.
Apart from contracting activities, Arcon also trades in building materials. “Arcon has the exclusive distributorship in Saudi Arabia for fireproof panels from Paroc of Sweden. These steel sandwich panels with rockwool fibre insulation have been used extensively as exterior walls of buildings,” he explains.
Commenting on the construction scene in Saudi Arabia, Shami says the sector started off well last year, but with the global crisis, “there have been some cancellations, delays and diminishing scope, especially in projects that are substantially financed by bank facilities.”
“However, during this year and when the dust has settled after the crisis, we will see many projects – especially from Saudi Aramco and industrial ventures – getting back on track,” he says.
Arcon employs about 40 administration employees, 35 engineers, 40 foremen, 60 drivers and operators, and 2,000 workers. Its main office is located in Al Khobar and it has about 15 fully-staffed site offices throughout in the Eastern Province as well as two major storage facilities in Azizia and Dhahran.