A record investment budget of SR440 million ($117.4 million) for 2008 will enable Saudi Readymix to consolidate its position in the construction industry.

Seven additional stations are to be opened to take the total to 34 by year’s end. Two new quarries will be set up, joining three existing ones and more than tripling aggregate capacity. Additionally, the fleet of mixer trucks and pumps will be expanded.
Saudi Readymix commenced a serious expansion drive three years ago, increasing the number of commercial stations by three per year in existing and new markets. New stations during the period opened in Ras Tanura, Aziziya, Yanbu and western and eastern Riyadh. Onsite batching plants were installed in locations such as Rabigh and Khursaniyah.
“With the Saudi construction industry experiencing an unprecedented boom, the company’s aggressive expansion plan is expected to continue for the foreseeable future,” said a company spokesman.
The SR440 million investment budget for 2008 was approximately a 40 per cent increase when compared with the SR320 million budget of 2006.
The company has developed hundreds of mix types of ready-mixed concrete including structural concrete, self-compacting concrete, high-strength concrete, high-performance concrete, screed concrete and lightweight and heavyweight concrete. A smaller but important part of the business is producing hot mix asphalt, quarry products and concrete masonry blocks.

Mega-projects
The fastest growing sector to which Saudi Readymix supplies is mega-projects, a trend that is sure to continue for some time due to the fact that buildings in the kingdom  are getting taller, the spokesman said. He added that the demand for self-compacting concrete will similarly increase because it perfectly suits the fast-track mega-projects that are being planned.
“The company considers self-compacting concrete and high-strength concrete as our two main product developments,” said the spokesman. Both types were used in numerous projects such as Saudi Aramco’s PetroRabigh mega-project, Al Zoebi Tower and Al Sweikat Tower. The latter two structures are the tallest buildings in the Eastern Province. The company also supplied self-compacting concrete to the Khobar Movenpick Hotel and used high-performance concrete extensively in numerous high-rise towers in Makkah.

Innovations and R&D
Believing that product innovation is one of its main competitive advantages, Saudi Readymix’s technical staff has been experimenting with new mix designs in the company’s technical laboratories and maintains contact with leading academic and government institutions. It plans to build a brand new dedicated R&D facility to help in further developing and taking its products to the next level.

Production and sales
Strong demand, development of products and the distribution network have helped boost production and sales.
Total production grew by almost 30 per cent year-on-year over the past few years. In 2006 production exceeded 3 million cu m of concrete and in 2007 the number increased to 4 million cu m. For 2008 the company is targeting 5.2 million cu m.
In 2006 sales reached SR641 million and in 2007 the figure jumped to SR930 million, representing a 45 per cent climb within a year. For 2008, the company is targeting a turnover of SR1.3 billion, nearly 40 per cent more compared to the previous year.

Major contracts
Major contracts won in 2007 included Saudi Aramco’s PetroRabigh project, the Kayan Petrochemicals complex in Jubail, Saudi Aramco’s Manifa project and its Producing Facility project in Khursaniyah, Sagia’s Ras Al Zour complex, the Ministry of Interior’s housing complex in Riyadh, King Abdullah University of Science and Technology in Thuwal, Othaim Mall in Riyadh and the Makkah Al Mukarramah Medical City.

2007 milestones
The company started the year by entering the list of Top 100 Saudi Companies compiled by Arab News after several years of growth and expansion.
It reached the monthly milestone of 400,000 cu m in November 2007, also becoming the first ready-mixed concrete producer in Saudi Arabia to install the global positioning system on its fleet of mobile equipment. It also broke its own record by installing an on-site batching plant in Riyadh in under three weeks’ time.

Professional events
Saudi Readymix was very active in 2007 in putting together various events and seminars for industry professionals on the latest advancements in concrete technology. Most noteworthy were the first and second workshops in a series of workshops entitled Concrete Deterioration and Prevention which were held in cooperation with the  Centre for Engineering Research  at the King Fahad University of Petroleum and Minerals. The workshops were held in February and November and were presented by Willfried Krieg, the company’s corporate development director.