United Oil Projects Company (UOP), formerly Kuwait Chemical Manufacturing Company (KCMC), has said it is investigating alternative, non-traditional markets for polymeric materials to boost revenues.

CEO James R Hodgson said the company was also looking at presenting new, innovative business opportunities in collaboration with existing and new customers in identified target markets.
The company was focusing on developing niche products that added value to customers’ products and offer cost-effective alternatives to resins traditionally imported from Europe, he added.
UOP’s product range includes both commodity and specialty alkyd resins and unsaturated polyesters.
The company reported that sales in 2005 and 2006 were in excess of $23 million.
Discussing special features during 2006 and the first quarter of this year, Hodgson said that though there was a higher demand for alkyds, the increase in raw material prices had made it difficult for paint manufacturers. “Hence there is increased pressure on the margins,” he observed
“The unsaturated polyesters, on the other hand, see a depressed demand in certain segments of the industry like water tanks, but an increasing demand in some other segments. Again, like for alkyd resins, the margins are being squeezed due to higher raw material costs. With some raw materials like isophthalic acid, the industry is facing a shortage, and consequently, opportunistic pricing by some suppliers.”
UOP sources its primary raw materials locally and in the GCC region with specialities from Europe and the Far East.
Hodgson said demand for building materials and hence alkyds and unsaturated polyesters was expected to increase on the back of the construction and infrastructure boom in Kuwait and the  region, the extent of the increase varying from country to country.
The official said UOP’s products were “very well accepted” in the GCC region and beyond with its markets stretching from Africa to Sri Lanka.
“Because of excellent logistics, UOP is well-positioned for quick supplies to the GCC region and Mena countries. Additionally the low-cost base and accredited quality of our products allows us to compete in any international market as equals,” he commented.
The official said good quality was also complemented by just-in-time deliveries that offered real long-term savings on inventory costs.
“Customers, especially in the export markets, have already started marketing their products incorporating resins from UOP. 
“UOP products, being industrial raw materials, do not go directly to end use projects. These resins are incorporated into high-performance products by customers in export markets participating in major infrastructure projects – commercial complexes, housing projects, schools, factories, industrial units etc. These projects are diverse and spread over large geographical areas. In principle, UOP resins would be in major infrastructure projects.”
As well as challenge from raw material costs, there was also the industry trend to move towards ‘greener’ products. Still, within the Middle East, the overall short-term prospects for alkyds and polyesters appeared good, Hodgson said.
The original company, Kuwait Chemical Manufacturing Ltd, was established in 1979 for the purpose of producing and marketing polymeric raw materials for the coatings and reinforced plastics industry.  The company discontinued its business in 1990 due to the Iraqi invasion. In 1997 the manufacturing facilities were rebuilt and the company resumed its activities in early 2001.  In 2005, it changed its name to UOP to reflect the shift into a holding company in the oil, gas and petrochemical sectors in Kuwait and the region. 
One of its associate companies is United Precision Drilling Company, which is involved in Kuwait oilfield drilling.
UOP’s major share holders are United Industries Company, Al Safah Investment Co and  Al Muzaini Exchange Co.