Riyadh-based Saudi Arabian Adhesive Factory (SAAF), which has been taken over by the Ashwa Group says that it has successfully completed its reintegration programme and is looking forward towards a good year in terms with the launch of new products.

"2003 was an excellent year for SAAF, during which we achieved a seven per cent growth in sales and a significant growth in profit, says a spokesman for the company.
Last year, the company completed the restructuring and re-organisation of every aspect of the factory and its business. As part of the restructuring process, the company has closed down its paints division and downsized its production range, thereby reducing complexity and shifting its focus to areas that are in line with the current market demands. Saaf has also restructured its distribution and sales team with an aim to improve on efficiency and distribution reach, he says.
Established in 1975, Saaf has grown over the years to become a market leader in Saudi Arabia with a wide range of products - both water and solvent based. The company manufacturers a range of products including: wood, tile, contact and carpet adhesives; PVC and polyurethane adhesives; putty; sealants; concrete admixtures (bonding agent); and coatings for roof and wall at its Riyadh facility.
Commenting on prospects for this year, he says: "Although we predict a slowdown of the market towards the end of the year, we are positive in continuing our growth strategy by following a policy of systematically increasing production capacity; launching new products; expanding export sales; participating in key regional exhibitions and tapping into the strength of our marketing tools and activities."
The changes of the previous year have brought in results, says the spokesman who adds: "We are confident this year will be a strong year in terms of achievement for SAAF. Our first quarter sales results show another increase in sales compared to 2003. Our production increased by 22 per cent during the first quarter and further increases are slated this year. We also have plans of launching new products this year as well as the coming year."
The company has this year launched a paint remover - which commands a sizable share of the Saudi market traditionally dominated by imported brands - and plans to launch three new product groups in 2005 that will be innovative, environmentally friendly and aimed at  satisfying market demand.
"We also plan to develop more environmentally-friendly products, thus eliminating toxic and hazardous materials through new and advanced product formulations. We will try and continue to improve the culture and the friendly environment within the company, as well," he comments.
The company, which has a staff strength of over 150, also intends to expand its distribution network through the opening of new warehouses and markets as well as in new office space and machinery to further strengthen its production capacity and presence.
Its 5,784 sq m facility in Riyadh produces of 17,413.625 tonnes of its various adhesives and other products, which are manufactured to meet Saso (Saudi Arabian Standards Organisation) and ISO 9002:2000 standards, he says.
Backed by a young and aggressive managerial team and experience in the market that extends over 30 years, Saaf is focusing on developing its export segment "aimed at achieving a greater quality in export business and not just quantity," he adds. Currently, the company exports about 10 per cent of its total production.
Commenting on the Saudi market, he says: "Generally speaking, we are blessed with growth in the building sector fuelled by several public and private projects. Competition is on the increase and it is mostly price-driven without any regard to packing, marketing and quality.
"At SAAF, we believe that one of our key roles is to develop the market segments in which we are present through a series of programmes that involve: educating consumers; supplying quality products, practical packing and competitive pricing; forging partnerships with key players in the building sector; sharing and consolidating information on market trends and mechanics; participating in regular promotional activities, advertising, regional activities, and through participating in exhibitions such as the Big 5 show Dubai."
"We understand and value that the key to success is in the satisfaction of our customers/employees and our product categories/brands .
Recently, the company has supplied Aqua Fix to Medica for the Eika project; Acryseal putty to Al Rashied for the Specialist Hospitals project; and putty and silicone to Al Dhary Group for the Saudi Arabian National Guard project.