Saudi Arabia

World-class player

Success story ... the factory is now producing 600,000 tonnes a year.

Tariq Barlas, the CEO and vice president of Saudi Arabia's Al Tuwairqi Group, has overseen the development of the group's flagship steel factory into what is rapidly becoming a world-class player.

Al-Ittefaq Steel Products Factory (ISPF) has undergone a stunning business development over the past 10 years. "In 1990, we were producing just 12,000 tonnes of products per annum. Today, we are achieving 600,000 tonnes and have seen our revenue turnover increase ten-fold," says Barlas.

Located in Dammam's Second Industrial City, ISPF produces MS angles, flat and square round bars, plain round bars, reinforcing bars (rebars) and channels, all of which are manufactured in full conformity with Saudi, American, European and Japanese standards.

When the factory commenced production in 1989, it was considered a pioneer in the Gulf region with regard to hot profiles rolling steel. It is one of a very few hot rolled steel mills in the GCC.

It is now well positioned in the market place and constantly exploring the potential for business while at the same time improving quality standards. ISPF, which has been granted the ISO 9002 accreditation, has also introduced new products from time to time to meet the requirements of engineering industries.

One of its accomplishments was the introduction of the bar-quenching Thermex process for manufacturing superior-quality rebars that have improved yield strength and weldability.

Barlas is totally focused on maintaining and increasing the company's success and considers Al-Ittefaq to be as efficient in business terms as some of the most successful international conglomerates.

"If you compare our performance with companies such as VSW of Germany, you can see that we are very successful in terms of the efficient running of our business and profitability," says Barlas, who takes full responsibility for the vision and strategy which has led to the company's development.

But Barlas is quick to stress that it is teamwork which has been the most important ingredient in Al-Ittefaq reaching its goals and his business philosophy reflects this.

"I believe in keeping things simple with as little bureaucracy as possible," he says. "I also believe in empowering my staff so that they are able to perform in their jobs without having to refer back all the time."

Barlas sees his team as part of a triangle of thinkers, professionals and doers. "I believe that you work with people and so you must empower your managers and not interfere. Tell me when something is wrong but otherwise get on with the job," says Barlas who concentrates on strategy as a "thinker".

Barlas also believes in merit and accountability, "We do not encourage nepotism and it is vitally important that whether it is my son or the owner's sons, they must be capable - they must be able to deliver."

In terms of products Barlas is also keen to stress the importance of added value: "If the raw material cost does not leave any room for margin then I do not touch that product. It is extremely important that we produce products with added value which in turn provide for better profit margins."

Finally, Barlas' philosophy incorporates his customers without whom he would have no business.

"To me, our customers are our partners and we will work with them to make money for both them and us," Barlas says. "We do this by looking at the customers' business profile and making suggestions as to how they can perform or produce better, utilising our products."

The future for Al Ittefaq is palpably exciting as Barlas steers the company into the global market.

His plans for the future make even the company's current accomplishments look moderate and Barlas' confidence and determination will no doubt ensure that he realises his new goals.

Al Tuwairqi Group has emerged over the past 25 years as an important player in Saudi industry through its involvement in contracting, trading and manufacturing and its success in developing markets well beyond the Kingdom's borders.

Products it manufactures include space frames, roofing systems, hot rolled steel items, steel billets and electrical equipment. The organisation is also well known as a distributor of building materials including white cement and as a trader in industrial materials.

Besides Al Ittefaq Steel Products Factory, other manufacturing concerns are National Steel and Iron Factory, Space Frames Manufacturing Factory and International Electrical Products.

The group also has divisions for contracting, scientific and medical products, building materials, industrial supplies, information technology and trading.

The group's new ventures are Al Ittefaq Fibreglass Factory, the Independent Testing Laboratory to provide testing services for chemical, mechanical and metallurgical properties; and the HVAC division, which is engaged in providing heating, ventilation and air-conditioning equipment and services.

52