Saudi Arabia

Optimistic outlook

Dammam-based Saudi Readymix Concrete Company (SRCC), which claims to be the largest readymixed concrete supplier in Saudi Arabia, is optimistic of a great year ahead, given the stronger market conditions that are fuelling the construction sector as well as the company’s ambitious growth plans.

“We are currently producing an average of 220,000 cu m of concrete per month from all our plants. This is an increase of more than 10 per cent from last year and we expect this growth to reach 15 per cent by the end of this year,” says Fadi Mujahed, marketing director of the company.
“The reason behind this growth is that the boom in the Saudi construction market. Hence, we have been increasing our output to meet the rising demand for readymix concrete. We have now laid out aggressive growth plans. Our capital expenditure this year alone is expected touch between SR120 to 150 million ($32 to 40 million) and will involve investment in new equipment and machinery,” he adds.
Over the years, SRCC has successfully provided flexible and cost-effective solutions for the most complex and challenging construction projects in the public and private sectors in all the cities of Saudi Arabia, as well as meeting the more modest needs of smaller companies and individuals throughout most of the Kingdom, he says. The company now also has plans on the drawing board to expand to other regions during the coming year.
Commenting about the market, Mujahed says: “The market is now definitely booming and we expect this boom to continue for several years to come – which could be from two years to more than five years.”
SRCC currently operates a network of 18 commercial readymix concrete stations in 14 cities throughout Saudi Arabia. The company also operates two on-site readymix concrete plants. The company operates from a wide network of plants located at Jubail (two plants), Dammam, Khafji, Hofuf, Kursaniyah, Ras Tanura, Sihat, Aziziyah, Riyadh (three plants), Kharj, Jeddah (four plants), Rabigh, Makkah (two plants) and Madinah.
The company produces a total of more than 2.6 million cu m of concrete per year at its plants and operates over 40 batching plants, 85 mobile concrete pumps and 285 truck mixers.

Award
Saudi Readymix, has since last year, started off a new scheme to reward the company’s highest achieving commercial station. The company’s Jeddah South station (RM22) was named the first to bag the ‘Station of the Year’ award.
The scheme requires the company’s stations to compete against each other to meet certain targets that would be measured on a monthly basis.
“Under the scheme each of the company’s 18 stations would be evaluated based on 12 different criteria in the four disciplines of sales, quality, financial and operational efficiency,” says the spokesman.
“For 2005 it was Jeddah South that scored the highest cumulative marks during the year. The results were very close as three stations were competing for the top spot,” he says.
Jeddah South, which celebrated its second anniversary last month, employs a highly skilled, 45-member workforce. Serving more than 50 customers, the geographical coverage of Jeddah South extends all the way from Makkah Road to the Shoaibah Area covering the Industrial area and the Jeddah Islamic Port, the spokesman adds.
SRCC caters to the specific requirements of projects through having on-site plants, flexible equipment and detailed internal planning.
Among its more challenging recent projects was the Al Ma’alam Water Towers, a prestigious landmark built on an artificial island at Al Khobar’s Corniche by the local Al Yamama Contracting Company.
The 100-m tower has a water tank with a storage capacity of 5,000 cu m with an observation platform and a revolving restaurant at the top. The project entailed the supply of concrete for the 90-m-high vertical shaft, which was constructed using hydraulic slip-form technique. Saudi Readymix had to design and deliver sophisticated concrete mixes with varying setting times without any interruption over a period of eight weeks, says a spokesman for the company.
Established in 1978, SRCC was the first readymix concrete company in the kingdom to be accredited the ISO 9001 certification, says Mujahed, adding that it has qualified workforce of over 1,300 people, supported by the best equipment fleet and technology platform in the industry.
The company’s commitment to total quality management extends to every area of its operations, including the most comprehensive and exhaustive materials testing programme in the region, says the spokesman.
“Saudi Readymix is also the only readymix concrete company in the kingdom actively engaged in continuous technological research and education. Research and development activities include the qualification and selection of raw materials, admixture analysis, new product design and development, and applications research. Education programmes are conducted in conjunction with the local chapters of engineering and standards organisations, and with local universities,” he adds.
The company is a wholly-owned subsidiary of the Khalid Ali Alturki and Sons Group of Companies (Alturki Group), a leading industrial conglomerate operating in Saudi Arabia for over 30 years. The Group’s subsidiaries and joint venture companies provide specialised products and services for major industrial sectors such as construction, oil, gas, petrochemicals, utilities, power, and telecommunications.