Saudi Cable Company has turned the tide in sales, recovering from the recession-driven slump in 2009 and narrowing the gap to the turnover that the company registered before the economic downturn that hit companies in the Middle East and beyond.

The company, which offers  a wide range of power and telecommunication cables from its production facilities in Jeddah and Turkey, registered sales of SR2.26 billion ($602.6 million) during the last year, a far cry from the SR1.27 billion generated in 2009 when the recession bit most across several parts of the globe.

Saudi Cable though has still some way to go to reach SR2.61 billion that it reported for 2008 before construction, power and communication projects were halted in many places in the wake of the recession.

The company’s marketing analyst Omar Zaki Nahhas said low voltage cables contributed to some 40 per cent of the turnover in 2010.

“Most of our export is concentrated in other GCC states and neighbouring Arab markets. Our deals include an order for high voltage cables received from a neighbouring Arab state and worth SR34 million,” said Nahhas.

Turnkey contract
Other ongoing deals cited by the official include the supply of high voltage cables of 380 kV worth SR83 million in a turnkey contract for a project funded by the World Bank.

Saudi Cable is staging a recovery

The company is also implementing a supply order for high voltage cables of 110 kV and fibre optic cables worth SR52 million for King Abdullah Economic City in Rabigh, Saudi Arabia.

Another ongoing contact is for supplying cables valued at SR200 million for a Saudi company.

An expansion at the Jeddah factory has doubled production capacity from 60,000 tonnes to 120,000 tonnes.

Both plants in Jeddah and Turkey comply with IEC standards in producing a range of cables of high, medium and low voltage, building wires, speciality cables, instrument and control cables, optical fibre cables, metallic cables and overhead lines. Additionally, Saudi Cable now offers switchgear, joints and terminations through its new subsdiary Elimsan in Turkey.

“Our growth strategy is to pursue a high position in local and GCC markets by offering total solutions that meet every client’s needs,” said Nahhas.

“The basic difficulties and challenges facing Saudi Cable are the same as those facing all manufacturers in the Middle East in general, namely the severe competition from Asian manufacturers and new competitors entering the GCC market.”