
Saudi Filters expects to see a jump in sales this year at a time when most manufacturers in other industries have a far from rosy view on returns.
Its core business is the manufacturing of a range of engine filters for the automotive industry and consequently it is active in the after-market sector.
“We’re meeting the requirements of vehicles already out there,” said a company spokesman.
Saudi Filters is set to cross SR50 million ($13.3 million) in sales in the current year and has set a target of SR100 million by year 2013. Sales were SR42 million in 2008.
Established in 1988, the company produces a comprehensive range of oil, fuel and air filters under a technical licence from Purolator Products Inc of the US. ”The company has become a leading manufacturer and exporter of engine filters for many of the word’s cars and light and heavy trucks. It also imports filters for construction, agricultural and industrial equipment.
Customers are drawn from more than 15 countries, the company says.
The company seeks to intensify diversification and has signed agreements with international companies to import and distribute filters for the power generation, oil and gas, aviation and other industries.
For several years Saudi Filters manufactured engine filters for passenger vehicles but in 2006 it took over the assets of National Filters, adding some 250 heavy duty varieties and enabling the company to offer a complete range of automotive filters.
Saudi Filter’s two factories including the National Filters plant, are located in Dammam Second Industrial Estate.
“They are capable of producing over 12 million filters a year with a level of quality that complies with the requirements and specifications of OEMs,” the spokesman says.
Current production is up 32 per cent over 2007.
Production capacity needs to expand but the company is not keen on investing in new lines any time in the near future. But with demand for filters growing, it prefers to concentrate for the time being on representing foreign firms and distributing their products.
It is also seeking acquisition to “to realise its mission of being the largest filter company in the Middle East.”
The distribution network will be expanded soon to other GCC states.
Saudi Filters is fully owned by Rashed Al Rashed & Sons Company (RAR) and has benefited much from RAR’s financial and management support over the years.