The Gulf’s best known clay pipe manufacturing company is going through yet another expansion at its Riyadh facilities and focusing more on exports following a drop in the sales turnover last year.

Saudi Vitrified Clay Pipe Co (SVCP) has announced it will complete its latest expansion this year to take annual capacity to 185,000 tonnes from the current capacity of 170,000 tonnes.

The company has come a long way since first operating its plant in the late 1970s with capability to produce 24,000 tonnes of vitrified clay pipes and fittings. Growing demand and appreciation for the quality of its products meant SVCP had to ramp up capacity from time to time.

SVCP produces pipes in diameters ranging from 100 mm to 1,200 mm and offers normal, perforated and jacking pipes.

The clay is quarried locally from areas around Riyadh.

“The latest expansion will enable the company to guarantee maximum flexibility in delivering different sizes and types simultaneously and allow customers to work with more flexible solutions based on site and project conditions,” said Mahmood Abu Jabara, its general manager.

SVCP reported sales of SR225 million ($60 million) in 2009 against SR257 million in the previous year. Net profit for full-year 2009 was SR42.6 million, down 12 per cent.

But net profit in the first quarter of this year was SR19.3 million, up 110 per cent compared with the corresponding period in 2009.

“In 2010 SVCP expects to have growth again after the drop in 2009 due to the worldwide economic situation that affected investments in infrastructure,” said Mahmood.

An array of vitrified clay pipes made by the company

 “However SVCP is concentrating on exports as a strategic marketing tool and planning to achieve a minimum of 30 per cent of capacity as sales in world markets.” The company has exported to all GCC states plus Yemen, Egypt, Sudan, Jordan, the Far East and Western Europe.

Additional sizes
Parallel to the focus on exports will be the production of additional sizes of pipes and fittings, Mahmood said.

“The very long research and development we have carried out enables us to produce high-quality pipes with higher physical properties and meet all international standards such as SASO 236, EN 295 and ASTM C 7000.

Careful selection of raw materials is top priority while the company, acting in the overall context of quality, has introduced state-of-the art equipment and enforced strict quality control, the official said.

Production quality and marketing have been enhanced by modern testing equipment, high standards of accessories and jointing material and packaging.

SVPC is an ISO 9001 certified company holding the SASO Kite mark and certifications from MPA and NRW.

The company won new orders between January 1 and March 30 worth nearly SR100 million. It is also currently implementing major orders worth SR419.3 million.

SVPC has been operating as a joint stock company since 2007.

Abdul Latif Al Issa Holding Group is the top shareholder with 15.62 per cent of the shareholding followed by Prince Faisal bin Abdulaziz bin Faisal Al Saudi (15 per cent) and Dr Saad Saud Al Sayari (13.34 per cent). Abdullah Suliman Al Dabaan and Josef Wolf hold stakes of   5.68 per cent and 3.64 per cent respectively.