Hempel Paints Saudi Arabia has a new general manager. Peter Dam, who comes to the Kingdom having spent four years as general manager of Hempel's operation in Kuwait, also brings with him 15 years of experience in the healthcare and food supplement industry worldwide.

Dam sees big opportunities and challenges in the huge Saudi paints market.

"My experience with the end-user segment of the market has been significant," says Dam, who is looking forward to the challenges of running the Saudi operation. "Every country has its own specific differences and Saudi Arabia is my fifth overseas posting."

In addition to Kuwait, Dam has previously worked in Australia, the US, the UK and Germany.

Dam expects the Saudi market to be similar to Kuwait.

"From a product mix viewpoint, we are heavily into decorative paints in this region but, of course, the Saudi market is 10 times bigger than Kuwait. The segments, distribution and target groups are similar but because of the size, we have to utilise different means to reach the end-user," says Dam. "The challenge in marketing is greater in terms of media selection, especially with television and the wide range of channels."

Hempel Paints (Saudi Arabia) started production in 1973 on the Dammam First Industrial City. At its 20,000 sq m facility, Hempel produces protective coatings for industrial applications, marine coatings and decorative paints. Raw materials come from a number of countries including those in Europe and Far East and from within Saudi Arabia.

Decorative paints represents two-thirds of Hempel's production and is the biggest potential market. However, Dam is keen to emphasise that the industrial and marine segments are also significant markets. "Hempel's roots are in the marine and industrial sectors and we are keen to emphasise that our expertise in these areas is on a par with our professionalism in decorative paints," he points out. "We will be concentrating efforts in all areas."

The effort on marine coatings is part of Hempel's worldwide branding-awareness strategy. "You have owners of ships that dock anywhere in the world and we have the organisation and expertise to deliver," Dam continues. "With over 350 coating advisers scattered around the world, part of our remit is to create a worldwide exercise in brand-awareness for the marine and industrial sectors."

Dam would also like to develop an even closer working relationship between the five Hempel factories in the Gulf but is also aware of how localised the markets are. "We even find colours which are specific to a particular area but we are placing emphasis on Hempel as an entity in the Gulf rather than individual factories."

The Saudi operation has a production capacity of 30,000 tonnes and the factory is currently working close to capacity. With the market improving, Dam expects good results in 2000 although he believes that projects are still slow. "Everyone from retailers to contractors are a lot more bullish than they were a year ago," adds Dam.

As for Hempel's operation in Saudi Arabia, Dam believes that the company is perceived as and is in fact a well-run organisation.

"I intend to spend the next few months studying how we are perceived and will then look to adding value," he says. "The company has undergone tremendous changes over the past five to seven years and we are also in the process of a major upgrade."

Hempel intends to expand in terms of both facilities and production capacity. This includes the rebuilding of the administration offices which will result in a 70 per cent increase in the space available. The company has recently acquired additional land next to its existing plot and the expansion programme over the next three to four years is geared to ensuring that Hempel can continue to supply market needs. The new investment is estimated at SR50 million ($13.3 million).

Dam himself intends to maintain and develop the people-orientated management style that already exists within Hempel. Within this philosophy, team work continues to be a key factor in moving the business forward."

Hempel employs approximately 290 people within the Kingdom and has maintained a steady turnover over the past two years despite the low oil prices during most of the period which adversely affected the construction industry, according to Colin Harris, marketing manager.

Hempel Saudi Arabia is ISO 9001 accredited, while products meet various SASO standards where those standards exist, he adds.

During the last year, Hempel launched the following products.

* Wallart 58470, a special effects paint for marbling, rag rolling, stippling and antiquing. This water-based paint enables a wide range of decorative finished to be achieved using different base colours and creative application methods;

* Rustik-3 58670, a coarse aggregate texture for external use. This acrylic water-borne which contains crushed marble stones is particularly suited to applications where the substrate is uneven; and

* Unitexture 58320, a high-build waterborne acrylic smooth texture developed for use as a finish coat. It has pristine whiteness and can be applied by roller or spray.

The company also relaunched a new improved formulation of Flat Emulsion 58710.