Freshly made vitrified clay pipes at SVCP

Saudi Arabia’s infrastructure developers who swear by traditional building material have a new pipe-making facility to serve their needs.

Saudi Vitrified Clay Pipe Company’s (SVCP) second plant opened earlier this year in Riyadh with a capacity of 70,000 tonnes, joining another factory of the company whose capacity has been drummed up over the years to 100,000 tonnes.
SVCP was founded in 1977 as a Saudi, German and Belgian joint venture to meet the needs of Saudi Arabia’s rapidly developing infrastructure. It produces pipes and the fittings and accessories to go along with them. In 2007, the company converted itself into a public joint stock operation.
It has enjoyed rising sales year by year, reaching SR211 million ($56.2 million) in 2006 when it was decided to set up an additional plant. By that time the company was working at full capacity and there was adequate demand to prompt the company to produce more.
SVCP reported a sales turnover of SR257 million in 2008 against SR214 million in the previous year with exports in both years remaining high – SR63 million in 2007 and SR57 million in the following year.
This year, despite the difficult economic situation in the Gulf and globally, the company has budgeted sales of SR260 million with as much as SR58 million coming from exports, said sales manager Mahmoud Abu Jbarah.
“Exports are a strategic issue and at least 30 per cent of capacity is allocated for international markets,” said Jbarah.
The company delivered its first overseas order in 1986 when it sent a consignment to Bahrain. Other Gulf orders followed suit and by 1988 the company had spread its wings beyond the Gulf to the wider Middle East, finding markets in Yemen, Egypt, Jordan and Sudan. Exports to the Subcontinent, Southeast Asia and the Far East commenced in 1991 and subsequently orders flowed in from Western Europe.
Jbarah highlights that SVCP, since its inception, has played a major role in the construction of the sewerage infrastructure in Saudi Arabia and neighbouring countries.
The company has had an ISO 9001:2000 accreditation since 1998 and its products are in compliance with standards set by several reputed institutes in Saudi Arabia and Europe, he says.
The company boasts a staff of more than 500, works in collaboration with its German partner Keramo-Steinzueg and ensures its products keep abreast of the demands of the day through the operations of two research centres, one in Saudi Arabia and the other in Germany. Keramo has been a partner of SVCP since the time it was founded.
SVCP’s pipes are made from material quarried in Saudi Arabia in areas around Riyadh. The quality of the manufactured products reflects formulas emerging from a judicious mix of ingredients.
Jbarah believes his company’s vitrified clay pipes are best suited for gravity sewerage networks and enjoy long life as they use pure natural material.
SVCP is currently implementing orders worth more than SR600 million in Saudi Arabia itself. These include a SR136 million contract granted by contractor Civil Works Co for a project called Jeddah Ph 1.
Another major contract it is carrying out was received from Al Mabani for South Central District, Jeddah. The value was given as SR60 million. For contractor Al Harabi Trading, SVCP is supplying products worth SR47 million meant for a project in Central North District in Jeddah. SVCP is also in the process of delivering material worth SR29 million for Yehia Omar A Moaty Establishment’s project called Central No 13, Makkah.
SVCP’s main shareholders are Abdul Latif Al Issa Co (15.6 per cent), Prince Faisal bin Abdulaziz bin Faisal Al Saud (15 per cent), Dr Saad Saud Sl Sayari  (13.5 per cent) and Riyadh Investment Co  (5.50 per cent).