United Oil Projects (UOP) Company, active in the chemicals and oil services sectors, is preparing proposals to diversify its chemicals products range, a senior official of the company has said.

General manager Nick Judd said any new project could utilise technology and expertise from within the company or outside. It would also prefer to use raw materials generally common to what it currently used for its operations and largely avail itself of the existing infrastructure without having to spend much on extensions. 
UOP was formally called Kuwait Chemical Manufacturing Company (KCMC) and underwent the name change during 2005 when it added the oil services division. The chemicals division, however, has retained the old name of the company and is known as KCMC. The oil services division is actively developing project opportunities, and is a significant shareholder in United Precision Drilling Company. It is working on drilling contracts for Kuwait Oil Company.
UOP is owned by a diverse group of shareholders, of which listed Kuwaiti group United Industries Company  (UIC) is the largest. UIC is, in turn, under the umbrella of Kipco, an influential listed Kuwait investment group.
UOP was recapitalised by way of a rights offer during 2005 and now has a paid-up capital of KD10 million compared with KD2.5 million. The additional capital is being used to diversify company operations into the oil sector and to fund its planned expansions in the chemicals sector.
KCMC commenced local chemical production in 1983. The production facilities, located in the Mina Abdullah Industrial Area, were destroyed during the invasion of 1990. KCMC remained out of production until the fourth quarter of 2001.
The facilities were rebuilt, during 2001, under technology from Synthesia Espanola SA (Spain). Under its current configuration, KCMC produces polyester resins including unsaturated polyesters utilised in the fibreglass, composites and pipe sectors and alkyds consumed as a binder in coatings. KCMC increasingly distributes chemicals manufactured by other parties.
In 2005, KCMC volumes surged 29 per cent compared with 2004 and by 155 per cent over 2003. The sales revenue was 38 per cent above 2004 and 247 per cent over 2003.
“Certain key large-volume customers were successfully targeted, with business captured from regional major competitors and sales of ‘distribution’ materials increased by 242 per cent,” said Judd.
“Strong cost-control continued. Costs were incurred in the ISO-accreditation programme, and in maintenance of plant/machinery/transport. Incremental improvements to facilities, aimed at improving productivity and diversification, were performed.”
Judd also said internal R&D successes had accelerated with the addition of new specialty grades and custom-developed commodity grades.