Factory equipment purchased from a disbanded Thai factory will help Bahrain Pipes Factory to more than double production capacity by the end of 2002 and fulfil demand it has now not been able to meet in PVC- and polyethylene-based products.

The factory's current capacity of 4,800 tonnes per year is expected to surge to 12,000 tonnes while the company estimates the annual turnover to expand from BD2.4 million to BD6 million, the company said.

Bahrain accounts for 35 per cent of the turnover with the Gulf/Middle East region accounting for the remainder.

Sales engineer Mohammed Laith said the acquisition of the Thai factory's German equipment amounted to virtually transferring the entire factory from Thailand. The machinery is German and is quite new considering that the Thai company, Diamond Roof and Tiles, had used the factory for about a year before deciding to close it down.

Bahrain Pipes Factory presents a full range of both pipes and fittings and does customs-fabricated fittings. It also specialises in the production of low-density polyethylene (LDPE), high-density polyethylene (HDPE) and mid-density polyethylene (MDPE) pipes and conduits along with chlorinated PVC and unplasticised polyvinyl (uPVC) pipes.

Its PVC offerings currently amount to 30 per cent of all sales, with HDPE and LDPE pipes and fittings also contributing substantially to the income.

The company stresses that it uses state-of-the-art technology and modern computerised machinery supplied by German manufacturers for pipe extrusion and injection.

"Reliable and cost-effective production processes are unthinkable today without a process control system. The manufacture of systems for pipe extrusion forms a major segment in the activities of Battenfeld Extrusion-stechnik. Our extrusion lines are therefore equipped with sophisticated, cost-effective functions with Unilog Tc40 automation systems," a company spokesman said. Bahrain Pipes Factory products conform to reputed standards including British and American.

Laith said usually Saudi Arabian importers were the biggest buyers of the company's products, while now and then large orders came from Qatar. But Jordan appears to be a promising market and a clear sign that it will be a good market comes from orders already received from there and continuing. Laith said they were particularly large shipments for PVC and cPVC pipes. Jordan is opening up well mainly because of a bilateral agreement signed recently between Manama and Amman that allows Jordanians to import Bahraini goods without customs duties. An agent representing Bahrain Pipes Factory's facilitates imports of the company's products into Jordan.

New equipment deployed in the extended factory will help the company supply pipes of higher diameters - 900mm against the current maximum of 315mm as well as ready-made fittings such as elbows, bends, Ts and Ys which earlier were not manufactured there although they were fabricated at the customer's instructions.

"Customers will now have fittings readily available instead of having to ask for fabrications. Any fittings beyond the wide range we are going to manufacture will be fabricated by the company," said Laith.

Earlier this year the company opened a development department that conducts research and presents fabrication solutions. Laith said the department had already solved some intricate problems including one for a Qatar Petroleum contractor. The department also designed a product made from PVC and HDPE material that can be used as a dockside buffer and has recommended material for a host of other things including furniture linings and flag masts. Laith believes the development department could contribute significantly to the company's growth and prestige.

The new factory unit has come at a time when there is a surge of project activity, particularly in Saudi Arabia, the UAE, Qatar and Bahrain itself. Contractors are more likely now to order plastic material than at any time in the past both for the price advantage and the technical properties. Unplasticised polyvinyl chloride has properties that are as good or better than traditional material such as steel, cast iron, asbestos cement, clay or wood in certain uses. Among the attractive aspects are low density, good chemical resistance and the ability to self-extinguish. They also allow ease of processing, particularly production by extrusion.

"We are capable of selling the additional production. Right now we can't meet our customer's requirements because capacity has been inadequate, higher-sized pipe diameters are not available in our product range and readymade pipefittings are not available ex-stock. These problems will be resolved in the next few months when the new unit begins operations," said Laith.

The official expects 2002 to be more profitable than last year, taking into account only the existing factory. The company is optimistic it will be successful in bidding for projects in Bahrain, Qatar and Saudi Arabia, places it is now already busy with. The company has already supplied material for the Hidd project in Bahrain and Qatar Petroleum projects and is expecting to receive additional orders from there. An upcoming project in Kuwait could also be lucrative for the company in coming months.