Plastico (Al Othman Plastic Industries), a Saudi Arabian producer of plastic products for the food industry, is set for another expansion, its fourth since 1995, and is seeking markets in Europe. The company says it is also eyeing diversification into other areas in the near future, but is not forthcoming with details at this stage.

The Saudi market accounts for most of the company's sales of plastic products while some output goes to other Gulf and Middle East markets. General manager Abdul Mohsen Al Othman said the forecast for investment in the expansion was around SR15 million in buildings and machinery.

"Our policy on expanding current facilities is based on the size and nature of market demand for plastic products in the food and beverage industries," said Al Othman. Plastico manufactures cups for packing labneh, yoghurt, coffee and juices as well as a host of other products including food-compatible polystyrene, SBR and polypropylene sheets, blowmoulded bottles and caps. The production range also includes CD trays. Much of the raw material is sourced from the Kingdom's petrochemical giant, Saudi Basic Industries Corporation.

Asked whether with the expansion of the manufacturing facility there were more long-term contracts in place, the official responded: "We have bagged a few more long-term sale contracts. Consequently, long-term sales contracts still account for 50 per cent of the expanded capacity." He stated categorically that Plastico had no plans to set up facilities outside the Kingdom.

Discussing exports, he said: "We have been exporting a certain percentage of our production to GCC states and to some Middle Eastern countries for the last five years. Our major target, however, remains Europe. As we are very keen to expand our export market, every effort is being made to explore into the potential European market. A major proportion, however, goes to the Saudi market."

The company has acknowledged that production currently exceeds 6,000 tonnes annually for customers in the burgeoning food and beverage industries.

"Whether it is blow or injection moulding, extrusion, thermoforming or printing on plastic, Plastico has demonstrated its pre-eminence in providing products of the highest quality.

"Our graphic and industrial artists are highly skilled and very responsive to customer demands," it stated.

Al Othman said the company's approach to quality had helped it reach its present level. "Plastico has emphasised on quality since its inception. Quality is foremost in all our plans and strategies," he observed. "The development of its quality standards coupled with cutting-edge technology and advanced processes have made Plastico one of the leading manufacturers of high-quality plastic packaging for the dairy and beverage industries in the Kingdom and in the Gulf and Arab states. Compliance with the requirements of the ISO 9002 quality assurance system is proof of our commitment to quality in every area of our operations."

Headed by a senior management team of European specialists - from extrusion technologists to experts in thermoforming, printing and graphics - the company has employees who are well trained and highly qualified. The factory, sprawling over 7,500 sq m, is located in the new industrial complex of Al Ahsa in Saudi Arabia's Eastern Province. Plastico has branch offices in Al Khobar and Riyadh in the kingdom as well as in Bahrain and Lebanon.

"From the idea stage to consumer use, Plastico has dedicated itself to studying the market through surveys in order to better serve the growing food and beverage industries and to meet the demands of various other market segments," said the company. "Our strategy is straightforward: to produce quality products that serve the consumer needs at sensible prices while being at the cutting edge of new technology."

The company keeps abreast of developments internationally and endeavours to introduce products that are attractive, easy to use, safe and retain the freshness and quality of the contents.

"The 'just in time delivery' system which is part of our market strategy ensures that the customer is not burdened with a large inventory that would be costly in terms of space and money," the company said.

Al Othman observed that the plastic industry in general and Plastico in particular had a bright future, but efforts needed to be made to maintain standards to stay in the race. "We need to strive hard to maintain the highest standards to stay ahead in the competition," remarked the general manager. He spoke of plans to diversify into other areas while not revealing which areas they were.

Al Othman said staff levels were constantly being increased to meet demand, expansion and increased productivity and the company provided a very progressive and motivating work environment to perform.