Zamil Ladder has announced it is diversifying its operations to include the making of cable trays, cable ladders and scaffolding.

It will manufacture cable trays and cable ladders in a joint venture with a US firm but has not yet finalised who its partner will be. The unit to manufacture those products is expected to be operational by the end of this year.

'The company is discussing terms with two US companies and will select one by early May. The party will provide us the know-how for the manufacturing process,' said Zamil Ladder plant manager Binu Cherian.

'Every industry needs power lines. With growing industrialisation, there is growing demand for cable trays and cable ladders. We expect Saudi Aramco and Sabic to be among our customers.'

The company sees rising demand for scaffolding systems in the Middle East and growing interest from India. 'Some of the machines we’re now using for making ladders will be used for making scaffolding while some equipment will be imported from India. Scaffoldings are usually made of steel and aluminium; we have selected aluminium,' said Cherian.

A useful product, the dual ladder

The new units will be set up near Zamil Ladder’s existing production facilities in Dammam.

As well as climbing products, the company makes manhole covers. Cherian said that although manhole covers seemed to be far removed from ladders, they had something in common with ladders, both being part of the construction industry. However, the company manufactures manhole covers in small volumes and they account for a mere 10th of total sales revenues.

Zamil Ladder, a member of Zamil Group Holding Company, saw a drop in sales in 2010, and expectations are that with diversification into cable trays, cable ladders and scaffolding there will be opportunities to boost the bottom-line.

The company produced a total of 192,000 ladders in 2010 against 140,000 in the previous year and expects output to be 237,000 this year. It achieved sales of SR28.3 million ($7.5 million) in 2010 against SR35 million in the previous year, the figure including manhole sales. The sales expectation for the current year is SR35.8 million.

Fast-selling products
Among the fastest-selling models are dual-purpose and extension ladders. 'Dual ladders are useful for obvious reasons giving two workers the ability to perform at the same time from a single unit. Over the years, we have improved our ladders, changing the metal composition for greater strength and stability and making them more comfortable,' explained Cherian. The company also offers customised products for access such as mobile platform ladders and gangways.

Zamil Ladder uses extruded aluminium alloys 6063 and 6351, these grades also being used for manhole covers. Some ladders are made of fibreglass.

In 2010, exports accounted for SR12.7 million of total sales of SR28.3 million. The company’s main overseas market is the Gulf and Middle East, but over the past two years sales to India have been growing.

The company claims it has captured 50 per cent of the Saudi market and feels challenged by imports of cheap products made in the Far East.