WITH the increasing focus on green buildings and energy conservation, Arabian Chemical Company (ACC-PS) is gearing up to tap the enormous potential for insulation in the Saudi Arabian and GCC markets in the foreseeable future, by expanding its capacity.

“We have only seen the tip of the iceberg in terms of demand, which will grow exponentially when GCC governments start serious implementation of thermal insulation standards that have been ratified since 1987,” says Hilal Kabbani, executive director of the leading manufacturer of thermal insulation systems for buildings.
In a bid to meet the projected increase in demand for thermal insulation system, the company intends to increase its capacity by 20 per cent by next year.
“The expansion plan targets those products that will help in achieving Leed (Leadership in Energy and Environmental Design) certification of buildings by reducing carbon emission to reach zero ODP (ozone depletion potential).
“Styrofoam will have a major role in reducing power consumption – which is growing at the rate of eight per cent yearly in the next 10 years – if insulation standards become compulsory with a high level of enforcement,” says Kabbani.
The Jeddah-based ACC (PS) specialises in providing thermal insulation systems for buildings. Its vast scope of activities covers roof systems for thermal insulation and waterproofing; and wall system insulation that includes cavity wall insulation, external insulation and finish systems (EIFs) as well as internal wall insulation.
Over the past two years, ACC (PS) has been promoting a complete waterproofing and thermal insulation system with the addition of the Firestone EPDM (ethylene propylene diene monomer) and TPO (thermoplastic olefin) membranes to its products range. The firm has also started offering the package as material supply, allowing its network of trained applicators to install the system and extend material and workmanship warranty.
The company also offers value-added services such as thermal calculations to meet project specifications. “We also prepare calculations for static and dynamic loads that our product can sustain long term in cold store floors and parking decks,” says Kabbani. “In addition, we prepare and submit method statements for all roof and wall applications and conduct training of applicators in the installation of our waterproofing membrane and thermal insulation systems.”
The company, according to Kabbani, enjoyed high-volume sales last year as wise government policies facilitated undisturbed growth in the kingdom, despite the global slowdown. “Efficient regulations by the government and its financial arm, the Saudi Arabian Monetary Agency (Sama), shielded Saudi Arabia from the economic crisis,” he says.
Kabbani also adds that the kingdom’s construction sector has been experiencing a boom over the past three years and will continue to enjoy it over the near to medium term in the residential, commercial, industrial, medical, education, defence, leisure and hospitality fields.
ACC (PS) has also benefited from the boom, having been involved in some of the many prominent projects that have taken shape over the recent past. Among the largest projects that it is currently engaged in is the estimated SR12 billion ($3.2 billion) Princess Nora University in Riyadh, where the three main contractors involved are Saudi Oger, Saudi Binladin Group and Al Seif Engineering. “The project is in the concreting phase and will have multiple phases that will be handed over gradually starting 2010-end,” says Kabbani.
“Meanwhile, work has resumed at King Abdullah Economic City (KAEC) and this is a good sign for us as well as other building materials suppliers. This project got disrupted in the wake of the economic crisis as Emaar the lead manager on the project was re-arranging its debts portfolio,” he explains.
Elaborating on some of the recent projects that ACC (PS) has completed, Kabbani says: “We have completed the King Abdullah University of Science and Technology (Kaust) project where we supplied factory-made wall panels that clad all the main university buildings. These were later covered with terracotta panels. This apart, we are currently delivering our products to the residential sector of the project,” he adds.
Some of its other major projects are the National Guard complexes, housing for workers in industrial projects for the Royal Commission in Jubail and Yanbu, and the economic cities in Jizan, Hail, Tabuk and Raz Al Zour, where a mega project will be implemented between Aramco and Dow Chemical of the US. “On the request of the Saudi government, Dow has been invited by Aramco to establish a research centre in Kaust and recruitment for personnel has started,” says Kabbani. “This centre will contribute to creating sustainable technology and products that will have a big impact on human life.”
The Arabian Chemical Company is part of Juffali/Dow Chemical Group comprising ACC (PS) Jeddah, ACIC Jebel Ali and ACC Latex Jubail. It has about 400 employees, including sales, marketing and management personnel. The company is currently setting up a new polyurethane/polyisocyanurate plant in Jeddah, which is expected to be completed by the year-end.
ACC (PS) was founded in 1984 as a joint venture between Dow Chemical and E A Juffali and Brothers of Saudi Arabia, and started production in 1986 in Jeddah.