Arabian Plastic Manufacturing Company (Aplaco) made an energetic start to 2011 reporting first-quarter sales of SR45 million ($11.9 million) and putting it on track to overcome last year’s turnover.

Aplaco, part of Saudi Plastic Products Company (Sappco), achieved sales of SR144 million in 2010 against SR117 million in the previous year. Exports accounted for12 to 15 per cent of the turnover.

Nabil Radhi, general marketing and sales manager, said prospects for business were very good with the announcement of new projects across Saudi Arabia.

Radhi said the company was not affected by the global recession and was able to see its sales growing without hindrance.

'Products for wastewater and drainage systems accounted for 60 per cent of the turnover followed by potable water system items at 25 per cent and hot water system products at 15 per cent,' said the official.

Main overseas markets were the GCC region, Ethiopia, Yemen, Egypt and Pakistan.

Strong marketing campaigns including promotions helped the company have a foothold in many places, the official said.

The company expects to raise its production capacity by 15 to 20 per cent this year with the introduction of high-tech moulds and multi-cavities, he added.

The company’s growth strategy calls for increasing production capacity by 50 per cent in the next few years.

Aplaco sources the raw material PVC from Sabic and manufacturers in Italy and the UAE. Radhi says a challenge is to continue offering high-quality products at affordable prices and believes the prospects for the near and long terms are very promising.

In recent months, Aplaco has been successful in receiving contracts for major projects such as King Saud University, Princess Nora University and King Abdullah Financial Centre. It has supplied major contractors including Saudi Bin Laden, Saudi Oger and Al Saif.

Pipe products made by the company

Aplaco was founded in 1978 as a joint venture between Sappco of Riyadh and Georg Fischer Limited (+GF+) of Switzerland. In June 2004, Aplaco became a 100 per cent Saudi company after +GF+ decided to terminate the JV pact. However Aplaco products still bear the +GF+ mark under a trade mark lincensing agreement. Current shareholding is with Sappco (97.3 per cent) and Faisal Saud Mohammed Al Saleh (2.7 per cent). Aplaco is also the sole agent of +GF+ products in Saudi Arabia. It is well regarded as a brand for plastic pipe fittings and claims to be a market leader in its field in Saudi Arabia.

'Aplaco fittings for drainage, wastewater supply, irrigation, telecommunications and electric duct systems have withstood the test of time in the harsh climatic conditions in the region,' said a company statement.

'The export market is a growing market for Aplaco; we hope to increase our presence in various countries through well-known distribution channels and through direct marketing.

'Aplaco is also set to expand its product range to meet the growing demand for fittings for hot and cold water systems that meet ASTM standards and for fittings required for low pressure drainage systems.'

The company’s motto is 'one company; one source for the supply of plastic pre-fittings.'