One of Kuwait’s major industrial companies has spelled out ambitious expansion plans that will help consolidate its position in the country, enable it to penetrate new overseas markets and exploit opportunities for diversifying its business portfolio.

Refrigeration Industries and Storage Co (RISCO) KSC, which was established in the 1970s to provide storage facilities for the Kuwaiti market and subsequently became well known for its COOLEX air conditioning products brand, is already implementing some of the plans, and hopes to initiate new projects gradually as part of its vision for the next 10 years, its managing director and general manager Waleed Alshurain has said.
The company is currently active in the cold storage, transportation, manufacturing and contracting sectors.
After serving for many years as a food storage provider, the company established in 2003 a transport division for reefer cargo. RISCO has been a pioneer in the provision of storage facilities, its facilities in the busy Shuwaiq area being particularly popular among traders because of their convenient location. RISCO’s temperature-controlled warehouses were established in 1973 to house the strategic food reserve and cater to the needs of producers, importers and dealers. Alshurain recalls that even during the Iraqi invasion, the operations did not cease because of the presence of two large generators.
“RISCO’s storage facilities were number 1 in Kuwait and still are the best in terms of location and services,” says the official. “We have people who have worked there for more than 25 years. We are the leaders in cold products transportation.” Between 2003 and the end of 2004, RISCO was the only reefer company, but in 2005 several transport companies entered the market to win coalition forces tenders. RISCO has mobilised some 240 fleet units and is the largest operation in the country. It is also engaged in refurbishing of dry/reefer containers intended for rental use or sale.
The company manufactures products for ducted, split and central air conditioning. It is the only fully-fledged AC manufacturing company in Kuwait where a few have been making split air conditioning systems.  The company’s involvement in the manufacture of air conditioning products began as York Air Conditioners in 1982 for technical know how in the production of AC systems in Kuwait. A factory was subsequently set up in Sulaybiyah.
RISCO today puts its share in the villas market in Kuwait at 20 per cent. In recent years, the company has pursued and won a number of air conditioning contracts for tall buildings and private residential areas.
“We see great potential and growth in AC contracting with a lot of construction going on not only in Kuwait but also in the region and internationally,” says Alshurain. “We are concentrating on major, high-value projects whilst earlier most of our focus was on small residential ones.”
In keeping with the pace of construction in Kuwait and the GCC region, RISCO has redoubled its efforts and is succeeding in winning contracts, thanks to a firm resolve to provide top-calibre services backed by material from its own production units and the expertise and drive of its staff.
“We have a few projects in Qatar and the UAE. We have signed a contract in Muscat, we have a few major contracts in Kuwait itself and are in the process of finalising even more,” says Alshurain. The company clearly sees an international role for itself, and is enthusiastic about penetrating areas even beyond its own Gulf region.
“We see 2006 as the best year and are positioning ourselves for the big projects,” he says.  Anticipating it will be required to fulfil many contracts in the booming sector, RISCO has established a business development department where, it says, it will be continuously engaged in R&D and preparing and reinforcing QA procedures to meet its contract commitments.
RISCO’s ex-pansion is a multi-pronged affair.  Even while it will be busy seeking and implementing contracts and generally positio-ning itself as a strong provider in the air conditioning con-tracting field, the company will also be looking at improving its manufacturing processes. Output of various kinds of AC products including chillers was 10,000 units in 2004 and 17,000 units in the following year. The 2006 figure is targeted to reach 25,000 units. RISCO is installing equipment to manufacture different types and sizes of air-cooled chillers.  The company now produces some 25 chillers a year and the goal is to raise the output to a fair turnover to meet demand that is set to grow. Chiller production began only last year and the company still considers the current period as a trial stage. The chillers are tailor-made to the requirements of small hotels and commercial buildings and built to a capacity of 250 tonnes. RISCO plans to build chillers of 300 tonnes, for which it will have to install new equipment.
The company is also keen on expanding the production of coolers.
“Our vision for the next 10 year is to be one of the largest electro-mechanical contractors in the region,” says Alshurain, who adds that the company is on its way towards that status having already invested much in research and put itself in expansion mode.
Along with establishing manufacturing facilities, the company considers it imperative that it sets up relevant laboratories to ensure that any items emerging from its production lines are of the highest international standards and in keeping with best practices.  To manufacture air-cooled chillers, the company will be setting up a major ETL-approved laboratory. Says Alshurain. “We’re working with the Institute of Scientific Research to have them supervise the existing laboratory and also set up and supervise the new one that we will be constructing.”  Importantly, other companies will be allowed to avail themselves of the lab’s facilities, which Alshurain says, will be a good thing for Kuwaiti business.
Production growth will necessarily involve expanding the factory area. At present, the company’s premises occupy an area of 25,000 sq m. It has commenced building facilities in an additional 8,000 sq m. But even that expanded space will not be sufficient for its ambitions. “We’re in discussion with the government for an additional 50,000 sq m,” says Alshurain.
One of the company’s main manufactured products is ducting, for which it uses Nippon coils. But it plans to be more flexible and wide ranging in its offerings. One of the new offerings will be pre-insulated ducting which needs a different type of material to make. Currently, the company makes rectangular ducting, but with a range of different projects coming up, there will be a need to offer other shapes as well as different sizes, and that’s what the company intends to do.
RISCO will also be manufacturing grills and diffusers as part of its move to broaden its appeal. These items will come in a wide range of sizes and colours.
Actually, the grills and diffusers are minor elements compared to the company’s scheme to build chillers, which the company classifies as a significant project. “We might even go for mini-chillers that can be used by a larger market, the chillers we have in mind being of the range of 25 to 50 tonnes. A few companies in China have started manufacturing these. RISCO is investigating the possibility of having the mini-chillers produced in its own facilities, and as Alshurain says, “we’re doing our homework.”  RISCO plans to produce packaging units for the chillers that will emerge from the delivery lines.
Another sign that the company’s expertise has not gone unnoticed is an enquiry it has received from an OEM to manufacture air conditioners for its brands.
Alshurain believes the possibilities for RISCO are immense and he sees some of them taking shape in a 10-year vision span.
“We’re starting to be in the market to manufacture any product related to the transportation of cold storage products such as reefers,” says the ebullient managing director. “We’re trying to form a venture to establish a build own transfer (BOT) business. We’re talking to companies and consultants in storage and transportation as well as contracting and manufacturing businesses.
“We’re also investigating pros-pects for entering the business of handling facilities for containe-rised cargo in ports and the logistics surrounding them – and we’re looking beyond Kuwait.”
As Alshurain sees them, the opp-ortunities are beck-oning.  “RISCO is in the process of working in one of the Gulf free zones to build cold stores and provide transport solutions. We are also coordinating with investors in Qatar to have a project related to storage facilities, transportation and electromechanical contracting and manufacturing,” he says. A more ambitious initiative in the offing relates to district cooling. Alshurain says the company is coordin-ating with more than one consultant for ven-turing into that field, which already has one major player in the region. RISCO is currently an agent for one of the US cooling towers makers, CCS Composed Cooling Solution. It signed an agreement to the effect only a few months ago.
Until recently, the company was content to concentrate on its own backyard for business. But with greater prosperity from strong oil prices and frenetic building activity throughout the region, the company has recognised that the time is ripe to produce more, become more versatile and seize opportunities in other states. With expansions in the pipeline, regional sales are certain to surge before long. “In 2006 we expect operating profits to climb 50 to 75 per cent,” says Alshurain. The optimism stems from the new contracts it has already signed and others in the pipeline.   
 Over the next 10 years the company sees net profit increasing by not less than 20 per cent per year. 
As is the case with every manufacturer in the Gulf, one of RISCO’s biggest concerns is having to contend with cheaper products imported from some markets in the East, products that may not match the stringent standards and procedures that the Kuwaiti company follows. The chiller manufacturing business itself is a big challenge. “Experts and experienced people in the chiller field are very rare,” he observes. “Even contracting managers are difficult to get. We have to train staff to gain expertise and create conditions for them to stay on. The human factor is really a big challenge.”
Alshurain, who qualified as an industrial engineer, is passionate about improvements and change, and wants everyone to be filled with the same spirit. He is known to constantly tell his engineers: “Think about new develo-pments. Do research and try out new ideas. Out of 10, maybe two will click.” Solar energy is currently part of the company’s research activities.
The managing director also has strong views about business ethics. He has zero tolerance for anyone who will cut corners and sacrifice quality. The company has to be proper in terms of materials and delivery times. “We are responsible for our staff, and the customer is always right,” maintains Alshurain. With that kind of approach, RISCO has cut a fine figure in its field.