With more than a 50 per cent growth in output within the past two years, AVK Saudi Valves Manufacturing Company Ltd (AVK SVMC) believes there will be no dip in the production graph in the foreseeable future as it has penetrated new markets in Europe and Asia in recent months and has new clients to serve.

The company also plans to expand production.

According to its managing director Ole Hedegaard, output rose from 30,000 units in 2008 to 50,000 this year and he expects further growth in 2011 as “GCC markets recover from the financial crisis and the Saudi Government drives new projects forward.”

The company makes a wide range of valves, fittings and fire hydrants in accordance with BS, AWWA and DIN standards. The factory is also UL-listed, FM-approved and ISO9001/2000-certified.

AVK SVMC’s main shareholder is Denmark-based AVK Holdings which has production units, sales companies, agencies and partnerships in more than 590 countries while its products and services are supplied to more than 80 countries worldwide. 

“We’re expecting sales growth in both Saudi and GCC markets. AVK SVMC is very strong on fire hydrants being the only manufacturer in the Middle East with a UL/FM approval required by all clients focused on quality,” Hedegaard said.

“The company mainly exports to the GCC region but for years we have also been exporting to the Netherlands, Scandinavia and even Greenland. In 2010 we have been pushing hard for expanding our exports and have secured orders in the UK, Germany, Spain, Singapore and Malaysia.

A worker at AVK SVMC’s plant in Jeddah

“We want to continue growing in our core markets but at the same time develop new and emerging markets. We are looking at expanding our business to other segments and are trying to think outside the box and not focus only on the manufacturing and supply of valves and hydrants.”

AVK SVMC is currently fulfilling major contracts from NWC, the Royal Commission, the Ministry of Water and Electricity and Marafiq, among other key clients.

“We are looking at a general expansion plan to increase capacity and ensure fast supplies and excellent service to our customers,” Hedegaard said.

The company has its head office and plant in Jeddah and sales offices in Riyadh and Al Khobar. The AVK product range is approved by all major clients in Saudi Arabia including Aramco, the Ministry of Water & Electricity, the Royal Commission, Marafiq, the SWCC, Sabic, Civil Defence and Maaden. Products it manufactures are exported to all the GCC countries, the Middle East, Europe and Asia.

Gate valves and standards
“Throughout the past 25 years, AVK has developed into becoming the only manufacturer with the capability of offering gate valves complying with all major national and international standards such as ISO, CEN, Saso, DIN, NF, BS and AWWA. It is essential that the quality level of all AVK Saudi Valves’ products complies with the customers’ requirements and expectations. This is ensured by an extensive Quality Assurance Management System which is in accordance with ISO 9001:2000,” a company text states.

“The range of locally manufactured products has expanded and so has the range of products available within the AVK group. Today the range covers all valves and accessories needed for water distribution and sewerage networks, sewage treatment plants, fire fighting networks and valves suitable for desalination plants and process industries. The strategy of being global on a local scale has resulted in two different product lines to suit the harsh local environmental conditions,” it added.

The European standard versions are built in accordance with European demands, and Gulf standard versions meet the harsh environmental conditions of the region.

According to the company, the general demand for quality it faces in the Gulf exceeds what is required in the rest of the world.

“So it would be correct to state that the Gulf region is setting the future benchmark for quality. AVK SVMC is proud to be a part of this process.”

In 1998 the company was approved to deliver ductile OS&Y gate valves to Aramco. Since then the product range was enlarged with post indicator valves, check valves and fire hydrants.

Learning process
“By working with Aramco, AVK SVMC learned to work project-oriented with a strong focus on documentation and QC,” the company stated.

“This learning process has been highly rewarding. AVK SVMC’s total quality costs have been drastically reduced and this has been to the benefit of both the company and the clients served. Doing the right thing in the right way first time has become the mantra in AVK SVMC and it has proved to result in increased customer satisfaction.”

On April 15 the company celebrated its silver jubilee. Commented Hedegaard: “It has been 25 very interesting years with many challenges in a very changing market. AVK SVMC has over the years expanded its facilities several times and introduced more efficient production.”

In connection with the anniversary, the AVK Group’s management team visited the Saudi facilities to inspect recent investments in production and hear more about growth plans.

On May 1, Hedegaard was promoted to managing director to drive the company forward and ensure continued growth.