Bahrain housing project The mainly construction group Al Kobaisi is eyeing a still-to-be-finalised large government-organised housing project, hoping its involvement in the scheme will help it better utilise capacity at its factories.

The group is well known for manufacturing construction products including concrete, pre-cast slabs, blocks, kerbstones and paving slabs as well as aluminium and glass fittings.

Group turnover in 2001 was approximately BD10 million, an increase of some 15 per cent over 2000, managing director Abdulla Al Kobaisi said. Forty per cent of that came from readymix, block-making and sand and aggregate washing factories, 15 per cent from the aluminium and glass factory and the remainder from the construction and contracting business.

Al Kobaisi said the last quarter of 2001 was particularly good as the market picked up. Much of the increase in that period came from the readymix factory. The group's companies used 10 to 15 per cent of its readymix output with the remainder going to the open market in Bahrain.

The group expects a 20 per cent turnover expansion, but Al Kobaisi stressed it would not necessarily translate into big profits as prices of the finished products were still down while raw material costs were up.

The group comprises the following companies: Al Kobaisi Readymix Factory, Al Kobaisi Construction and Maintenance Company, Al Kobaisi Block Factory, Al Kobaisi Sand and Aggregate Washing Plant, Al Kobaisi Aluminium and Glass Factory, Al Kobaisi Carpentry and Joinery, Al Kobaisi Electrical Contractors, Al Kobaisi Mechanical Workshop, East Riffa Filling Station, Thrifty Car Rental and Al Kobaisi Equipment Hire.

The group took to housing construction five years ago, a departure from its earlier construction activities, which were restricted to building schools, ministry offices, other government structures and commercial establishments. The company has been using its own blocks for the building projects it has undertaken.

A list of projects ongoing or completed by the group's construction and maintenance company in the past five years mentions 84 villas at the project value of $16.06 million and a seven-storey building at Sanabis, valued at $2.04 million, both for the EMK Group. Among other important projects in the list are reclamation works at Asry ($208,000), a project at Riffa for the Bahrain Defence Force ($3.05 million), Art Gallery and restaurant ($2.45 million) and a clock tower on Exhibition Road ($652,800).

Now it hopes to capture a decent share of the public housing project and keep production lines busy in its factories

Al Kobaisi expects the scheme to involve a total investment of BD2.5 billion, the scale of which should bring relief to depressed companies functioning in construction-related fields. He has conveyed to a government-appointed housing committee his group's willingness to produce modern and low-cost housing.

"We want to construct a town that will accommodate 1,000 houses. We're in talks with the government to help us to do this and we're looking for land. We have the material resources," said Al Kobaisi. He indicated that the township could include pre-cast housing, which should be cheaper than conventional dwellings, and said he held discussions with a Saudi party for the manufacture of pre-cast housing material.

According to Al Kobaisi, some 50,000 people are looking for government housing in Bahrain including some who had applied way back in 1985.

The group's aluminium and glass factory makes such construction-related items as doors, windows, curtain walling and kitchen requirements. Turnover of the factory was BD800,000 in 2001, about the same as in 2000, but Al Kobaisi expects construction activities for private and government projects to rise towards the end of this year, triggering a production increase at the factory.

Al Kobaisi spoke of plans to produce aluminium and glass items for use in the wider industrial field. The company has discussed having a joint venture with companies in Thailand and China.

Earlier this year, the group marked its 30th anniversary by celebrating the award of the ISO 900-2000 certificate, granted for the readymix part of the business.