Explosives and detonators manufacturer Saudi Chemical Company, whose sales crossed the billion-riyal barrier in 2006, has said it will control costs, enhance operations efficiency and diversify its income sources.

The company also plans to create new enterprises and absorb other companies into its fold. It has taken steps to establish the Egyptian firm Suez International Nitrate Company (Sinco) with a share capital of $5 million and expects to own 98 per cent of its equity. Its plans include the merger of a Saudi company which owns pharmacies and another local company that supplies perfumes and cosmetics.
Saudi Chemical also stresses it will further develop the skills of its Saudi workforce. Its record sales of SR1.015 billion ($270 million) included figures from its subsidiary Saudi International Trading Company (Sitco) Pharma, which is a major distributor of pharmaceutical products. Net consolidated profits reached SR148.03 billion compared with SR110 million in 2005.
Saudi Chemical again reported strong performance, having achieved a net profit of SR78 million for the first half of this year, up 20 per cent over the same period in 2006.
The Riyadh-based company was formed as a joint venture between Nitro Nobel Sweden in 1972 when all of Saudi Arabia’s explosives were imported. In 1998 it converted from a limited liability company to a joint stock company and its shares were listed on the Saudi Stock Market (Tadawul) in 2001.
Production is carried out at three locations – one in Riyadh and one each in the eastern and western provinces. The main distribution warehouse is in the southern Saudi city of Abha.
Saudi Chemical production includes the explosive Kemulex, the dry blasting agent Prillex and non-electrical detonators of the Sanel brand.
Kemulex is an emulsion-type explosive characterised by its high detonation velocity and good waterproof properties. It comes in special plastic cartridges in different sizes. Prillex is composed of ammonium nitrates and fuel oil while Sanel detonators provide precious control and accuracy so that blasting vibrations are reduced and fragmentation is improved.
A few years ago Saudi Chemical introduced a new production line for Enviroseis, which it said was the latest in seismic explosives and specially designed for seismic exploration. The product is now used in Saudi Arabia’s oil and gas exploration campaigns.
Additionally, the company offers a wide variety of electrical detonators, detonating cords and accessories for rock blasting and oil exploration shooting. The company is also authorised to trade in and manufacture certain military materials and explosives.
Because of the nature of its activities, Saudi Chemical stresses it gives a very high priority to safety.
“Our safety culture fosters attitudes and practices that extend outside the workplace. In fact, by cultivating safe work attitudes, we are also ensuring the safety of the general public while we go about our business,” it says. “This includes not only safe manufacturing practices, but also planning and consideration of transportation safety to and from our storage facilities to the client’s sites or blasting sites.
“Our allies and technical consultants in civil explosives, Yara Austin International and Swiss Explosives Company, each perform annual safety audits in all our production and storage facilities.”
Saudi Chemical is a member of Safex International whose prime objective is improving the safety, health and environment of facilities associated with the design, development, manufacture, storage, transport and distribution, use, disposal and recycling of explosive products. The company has paid much attention to the training and education of those of its staff whose work is concerned directly or indirectly with civil explosives in all their aspects. The training focuses on new blasting techniques, safety and the handling of explosives.
“The recognition and appreciation of our customers worldwide are an inherent part of our processes and decisively contribute to the development of our business,” it says.
Saudi Chemical’s drilling and blasting services include high-capacity pipeline trench blasting; blasting for road cuts and foundations; in-city blasting where special caution is required and demolition of buildings and other structures.
The company has a modern fleet of Atlas Copco and Tamrock electro-hydraulic drill rigs as well as a workshop for repair and maintenance. It also offers approved magazines for the storage of explosives and detonators at worksites and vehicles for their transportation.
Saudi Chemical’s products are well-adapted to modern mining and rock excavation techniques and they are backed by a complete on-site technical support. The technical support includes giving customers and end-users information and professional training on the safe, correct and profitable use of Saudi Chemical’s products.