Engineer Tarek Al Kassabi leads Advanced Projects and Building Systems (APBSL), a Saudi-owned joint venture partner with the Saudi Offset Limited Partnership (SOLP) in Plastbau Arabia.

Mohammed Al Issa, CEO of Plastbau Arabia, was the first to use Plastbau Technology in the kingdom in a pilot project in Dammam. He organised several seminars and tours of the new office building (which utilised the system) during and after construction for building professionals, engineers and architects. He is now engaged in developing the first manufacturing plant for Plastbau products in Saudi Arabia.
In a recent interview with Gulf Industry, they discussed the company’s new project.

What particular good does the Plastbau project bring to Saudi Arabia?
Tarek Al Kassabi: One major gain is import substitution. While Plastbau technology continues to use the typical Saudi construction process of poured concrete, in the past Saudi Arabia has had to import plywood for shuttering. The Plastbau technology incorporates a locally produced shuttering material, polystyrene, to contain the poured concrete. In addition, the polystyrene has terrific insulating properties for both temperature and noise and is easy to manipulate because it is so light. By using the patented advanced insulated concrete form (ICF) manufactured by Plastbau Arabia, schools and hospitals can remain quiet places in which to learn and work despite noise on the streets outside. Furthermore, construction time and, consequently, cost are cut dramatically. The finished building also uses a smaller, more economical air-conditioning system as the insulated walls inhibit the loss of coolness to the outside. As Saudi Arabia enters a building boom with 4,000 schools planned by the Ministry of Education and an estimated 1 million new homes needed in the next five years to keep up with population growth, these cost savings will matter enormously to the national economy.

How did the Offset Office assist in the process of identifying the project and assisting its development, financing, and implementation?
Tarek Al Kassabi: The Offset committee had the foresight to approve a new project development vehicle, the Saudi Offset Limited Partnership, in 1997. The Saudi Offset Limited Partnership, to which The Raytheon Company and Thales International have contributed $35 million in investment capital, does the hard work of investigating investment opportunities in Saudi Arabia and then developing not only the project but also the relationships with Saudi investors, such as ourselves at APBSL, technical partners such as Plastedil SA which holds the patents on Plastbau technology, and financial partners. SOLP, and therefore the Offset programme, has been the key in helping us identify the technology, develop critical relationships with the technology provider, prepare feasibility studies, finalise all agreements and financing, and become true value-added partners in the company. SOLP participation has been crucial to establishing the project.
 
What contribution will the project make to the economic development of Saudi Arabia?
Mohammed Al Issa: In addition to the cost benefits cited by Engineer Al Kassabi, I note that the Offset Programme has as its goals the transfer of technology and the training and employment of Saudi nationals. The Plastbau technology is a perfect fit between the hot climate of Saudi Arabia, its typical method of poured concrete technology, and its current downstream petrochemical industry. Furthermore, we are eager to integrate into our company a cadre of well-trained Saudi engineers and construction professionals. We will offer consulting services to those who buy our product and thus expand the reach of the technology and the numbers of Saudi construction companies familiar with the advantages and techniques of building with Plastbau products.

What advantages does this particular project bring to the kingdom?
Mohammed Al Issa: This particular project will begin in Dammam where we are already in the process of constructing the buildings for the manufacturing facility. The Dammam plant will services construction needs within a 400-km radius, thus enhancing the speed of modern construction in the Eastern Province and Riyadh areas. Plastbau Arabia commences manufacturing in February 2006. We are certain that future manufacturing facilities that will service the surrounding areas will open soon in Riyadh and Jeddah as Saudi construction companies recognise the benefits of the Plastbau technology. Plastbau products and construction methodology reduce the time of construction by approximately 50 per cent and overall costs by a minimum of 10-30 per cent depending on the construction system used. It also reduces the manpower used in the construction, which is a tremendous savings for the contracting sector and our economy, which employs millions of labourers in the construction industry. No doubt it will eventually contribute to the Saudisation in our kingdom.
At the same time it provides effective heat insulation to the buildings, which will result into reducing energy consumption and, eventually, the electricity bill for residents.

What plans do you have for this company?
Mohammed Al Issa: Since Plastbau Arabia is the first company in Saudi Arabia to hold the manufacturing licence for the complete Plastbau product line: Wall, Roof and Floor, we expect our company to be the lead for this type of construction in the kingdom. We will encourage the dissemination of our product throughout Saudi Arabia, and are already planning additional plants in other regions. Our strategy is to provide a total solution for building construction; thus we are developing other new products and services to complement our product lines and solutions.  These include modular reinforcement for other structural members in the building and particular finishing products that will utilise the features of the system.