A 15 per cent spurt in production and sales revenues and significantly higher exports is what Zamil Steel’s pre-engineered steel building (PEB) division, a global leader in its field, has targeted for this year.

“Although the economic crisis in 2009 affected our production and revenues, we have set our target for 2010 at 15 per cent more than the levels achieved in 2009,” the company said.

“During 2009 we successfully maintained a steady growth in production all through the year according to the planned budget.”

The company revealed that Dammam export sales were 40 per cent of total production in 2009 while in 2008 it was 67 per cent. “Due to shrinking economic activities in our export markets in 2009, sales were more focused in Saudi Arabia.

The company has targeted 50 per cent in export sales for 2010.

One of the largest

Founded in 1977, Zamil Steel has grown to be one of the world’s largest manufacturers of pre-engineered steel buildings with local and overseas production facilities.

Zamil Steel manufactures annually a total of 500,000 tonnes of fabricated steel products for low-rise and high-rise steel buildings and structures for diverse applications.

Its products are sold in more than 90 countries through an international network of dedicated sales and representative offices, certified builders, agents and distributors.

PEB is the flagship of Zamil Steel as well as its oldest and largest business unit. Since its inception, Zamil Steel has designed, manufactured and supplied over 50,000 pre-engineered buildings to clients in over 90 countries worldwide.

The Guardian Glass Factory in RasAl Khaimah, UAE, was another Zamil PEB project

The main PEB factories are based in Dammam, Saudi Arabia. Additional factories are located in Egypt, Vietnam, the UAE and India. More than 600 design engineers are employed in its engineering departments in Saudi Arabia, Jordan, Egypt, Vietnam and India.

To get closer to its markets, Zamil Steel set up a new production facility in India and an additional one in Vietnam last year, boosting the number of overseas factories to a total of six.

Zamil Steel’s current production of PEBs including those in Egypt, India, the UAE and Vietnam falls short of 250,000 tonnes, down from a record high in 2008 when output was 330,000 tonnes. The decline was attributable to the general economic slowdown.

The company focused on markets least affected by the global economic crisis offering its usual services plus customised services.

Total building solution

As an industry leader, Zamil Steel excels in engineering, manufacturing, sales and project management and offers clients a diverse range of products from which to compile a total building solution.

The company utilises state-of-the-art engineering and manufacturing software and machinery in the design, estimation, shop detailing and manufacturing of each of its products. The Zamil Steel commitment to service at the local level is evidenced by a network of 62 area offices located in 37 countries. These offices are fully staffed and equipped to provide quick, comprehensive responses to customer inquiries, as well as extensive after-sales service.

They also export products to about 90 countries worldwide, and the staff is well-equipped to provide clients with detailed quotations and proposal drawings in response to building inquiries as well as on site support for ongoing projects. Zamil Steel also engages the services of a wide network of certified builders around the globe.

Aircraft hangars in Saudi Arabia supplied by the company

Innovation

An online management information system introduced by Zamil Steel PEB has proved very successful and is cutting delays in the execution of projects, the company said.

With web-based Live Enquiry System (LIS) sales offices around the globe can access Zamil Steel’s database and extract information relevant to the progress of any of the projects, it said.

This includes information related to the fabrication status, delivery schedules and detailed shipping progress in addition to many dynamic information items.

“This has eliminated the need to go through the regular channels which often hindered the flow of information and created unnecessary delays to customers,” it commented.

“LIS has been in successful operation since June 2009 and was considered as a breakthrough in the industry. It has taken Zamil Steel into new levels of the information technology era.

“Effective management information systems are a necessity for all business organisations in view of rapid business expansion, a global presence and the rate of change of today’s business environment.”

Projects

Among major projects it supplied to in 2009 was aircraft hangars for Riyadh and Jeddah.

A number of projects are under construction including Princess Noora University, Riyadh; Ministry of Finance, Riyadh; Obeikan Glass Factory, Yanbu; and Breidah Mall (all in Saudi Arabia), a ceramic tiles factory in Doha and a helicopter hangar building, also in Qatar.

About what prospects the division saw for the next five years, the company responded:

“In view of the high sensitivity of economies around the world, businesses will need to achieve a faster return to their investments by building fast and at lower costs. This is where PEBs are having their competitive edge away from the real estate or housing sectors.

“Industrial development, which depends heavily on steel construction, is the most tangible, stable and safest business to invest in, unlike the financial or services sector where risks are high and based on intangible assets.”