In its 30th anniversary year, the region’s largest producer of extruded and surface-treated aluminium profiles for architectural and industrial applications has indicated it is pushing for greater growth.

Aluminium Products Company Ltd (Alupco) general manager Khalid Mohammed AlFuhaid is spearheading significant capacity expansion from both its Dammam and Jeddah plants and considering several investments and acquisitions both in the GCC and overseas — an ambitious strategy of capacity expansion courageously backed by the company’s board of directors and one that will reinforce Alupco’s credentials as a regional and international player.
Alupco can be conservatively valued at $200 million and is increasingly a global player. Over recent years, it has expanded capacity to 75,000 tonnes, a 36 per cent increase over two years.
“We are evaluating opportunities in the GCC and Europe and have ongoing discussions with several aluminium groups,” says AlFuhaid.
“Alupco’s turnover has been growing at a tremendous rate, about 29 per cent over the last two years, and, during the last six years, despite the cyclical nature of the market, at an average rate of 17 per cent per year,” said the charismatic official who was in an expansive mood in his Dammam office overlooking the massive plant as he discussed his company’s forward industrial strategy and its strengths.
“Nobody expected this growth over the past few years and our plans for modernising the plants and installing new equipment are being brought forward by two years. By the end of 2008 Alupco will have invested about $80 million in expansion and upgrades and we already have eight extrusion presses, three powder-coating lines, two anodising lines and major modifications in the pipeline.
“About 30 per cent of our production is for export with the balance to meet the Saudi market. We like to maintain a balance between export and domestic demand and the Saudi market is always a sizeable proportion of the total demand. Europe is also important and we can compete successfully on quality and price even against the lead times of European manufacturers. Importantly, our strategy is to maintain profitability in the separate market segments.”
Towards that end, the company has been keeping in touch with the changing needs of its customers.
“Alupco is introducing new products and services for all applications including windows, doors, shop fronts, curtain walling and thermal break systems and targeting our Saudi, regional and international markets.  Importantly, we now have the processes in place to produce all surface finishes required including a wood finish being launched in the second quarter of 2005,” says AlFuhaid.
“Alupco is also transforming itself to become a listed company by 2007 and we are energetically engineering the company to realise our vision of being ‘a unique leader in the aluminium industry providing creative solutions that exceed customer expectations’. Our mission is to make the operation lean and efficient, reduce the fat where it might be and never compromise on quality”.
“Alupco has also set itself ambitious Saudisation targets by the end of 2005. With a total staff of about 700 we are extremely labour efficient and have more than a quarter of the workforce that is already Saudi. By year’s end we want it to be 35 per cent Saudi and intend to meet these targets,” says AlFuhaid. 
AlFuhaid has been with Alupco since 1989 following his appointment as trainee plant manager after graduating from the prestigious King Fahad University of Petroleum and Minerals with a degree in mechanical engineering.  Despite remarks that no Saudi would ever be able to work in the tough environment of the shop floor, AlFuhaid quickly made an impact on plant operations during a period when he was working round-the-clock shifts immersed in the entire production process. His technical expertise and insight into the manufacturing processes, ability to improve production efficiencies and the quality manufacturing accelerated his promotion through the ranks. Within three years AlFuhaid had overall responsibility for the massive Dammam plant, later managing procurement for both the Dammam and Jeddah plants. By 1996 he was managing the entire Dammam division often working 18-hour days, particularly when the structural profiles for the Burj AlArab were being manufactured.
“This prestigious project proved that in this area only Alupco had the necessary depth of experience and expertise to supply higher-end projects such as the Burj,” says AlFuhaid.
In 1998, the Alupco board of directors had recognised his contribution and knowledge of the technical processes, customer base and technical partnerships, and appointed AlFuhaid to the top position of general manager.
It was during this period that AlFuhaid developed a new strategy when the winds of competition were blowing hard and he pushed through several strategic investments to make Alupco a global company. This included investing in the largest extrusion press in the region – to meet demand for both the Burj and the Kingdom Centre - uniquely designed vertical paint lines and the state-of-the-art die manufacturing plant (DMP) in Jeddah now supplying the greater part of Alupco’s in-house demand for extrusion dies.
This reputation for quality aluminium extrusion products, developed over 30 years, has brought Alupco unparalleled success and often sole-supplier status on prestige projects such as Burj Al Arab, Al Faisaliah Center, Kingdom Centre, Dubai Internet City, National Bank of Abu Dhabi, National Bank of Bahrain, and countless others.
Technological expertise in state-of-the-art manufacturing processes has also enabled Alupco to win major export orders in the highly competitive European and Middle East markets. 
In terms of volumes, Alupco reports a growth of 98 per cent over the last six years, and forecasts substantial sales growth over the next five years with increasing market share in local and export markets
Alupco is the first extrusion company in the region to receive ISO 9001 certification. The design and production of aluminium profiles and surface treatments meet EN, DIN, BS and SASO standards.
Alupco is expanding its production platform and actively looking at the GCC and Europe and plans to build complete satellite extrusion plants to meet increasing regional demand and target the European market.  This is all part of the ambitious $80-million rolling programme of investment to install new equipment, upgrade and modernise existing lines and construct new facilities over the next five years. 
Production excellence is embedded in the Alupco organisation with a ‘no compromise’ approach to quality and efficiency backed by strong relationships with its technical partners such as Schüco, Installux, RC Systems, Reynolds and Hueck, whose systems are produced at the Dammam and Jeddah facilities.
Alupco is a specialist in surface treatment technologies with both its plants having two uniquely-designed vertical paint lines, one horizontal paint line, two anodising lines and a chemical brightening line with a combined capacity of 46,500 tonnes per year.
Alupco’s aluminium profiles are available in mill, anodised, polyester powder-coated and chemically brightened finishes primarily for applications in the construction industry for the fabrication of products including windows, doors and curtain walling systems. In addition, the company provides customised profiles in special alloys for the automotive sector and special profiles for the electrical and furniture industries, as well as lighting fixtures.
According to AlFuhaid, its $9-million Die Manufacturing Plant (DMP) in Jeddah, commissioned in 1999, is doing very well. The DMP eliminated Alupco’s previous dependence on European imports for its extrusion dies and tooling needs, thus giving it greater control over its deliveries to contractors. DMP manufactures up to 3,000 dies and tools per year, supplying the greater part of Alupco’s requirements for extrusion dies with the balance exported to neighboring countries.
Quality is at the core of Alupco’s manufacturing operations where an extensive quality assurance system involves every stage of the process, from production to customer service. 
“We are now in the process of implementing two process improvement tools; “Balanced Score Card” and “Six Sigma” in our organisation to ensure continuous improvement in business processes. These certification guidelines are raising efficiency levels across all aspects of the business from production to workshop manuals. Thus, our demand for absolute quality will continue with constant re-evaluation of the work processes, and also a greater degree of empowerment to deliver superior quality,” says AlFuhaid.
Alupco was also the first manufacturer of architectural and industrial aluminium extrusions to create its own system of aluminium windows and doors (the Saraya system), while it is also said to be the only company in the Middle East producing 300 mm x 80 mm hollow sections, with any design complexity, to ASTM, DIN, BS and SASO standards.
“I have been with Alupco now for almost 16 years, and importantly, one must have a sense of ownership, dedication and commitment to make the company successful. The company has a great workforce and our mission is not just to be the best but, more than that by giving greater responsibilities to the individuals, to be more effective in production, and operate with stringent guidelines for our manufacturing processes for achieving quality is an endless process,” concludes AlFuhaid.