Saudi Readymix Invests 130 Million SAR

Saudi Readymix is currently pressing ahead with the construction of three new concrete production plants in three separate locations across the Kingdom of Saudi Arabia in the latest stage of the Company's record SR130 million (USD35 million) capital expenditure program for 2006.

The newly launched projects in Khurais, Rabigh, and Yanbu - totaling almost SR 45 million (US $12 million) in capital investment - will supply concrete to Saudi Readymix's fast growing customer and project portfolio.

Khurais, where Saudi Readymix is building a SR15 million (US $4 million) on-site concrete batching plant to support the 'mega' Khurais Crude Increment Program of Saudi Aramco, is among several on-site plant projects being set up by Saudi Readymix across the Kingdom. Located almost midway between Riyadh and Dammam, Saudi Readymix's Khurais plant will be equipped with an advanced computerized batching plant and a modern fleet of truck mixers and mobile pumps, a key component of the Company's ongoing strategy to provide the construction industry with high quality concrete and service that guarantees supply reliability. 

Such dedicated project-specific plants are supported by the Company's own on-site quality control laboratories, staffed by highly skilled technicians to ensure consistent high quality supplies of ready-mixed concrete that would meet the most stringent of specifications.

On the other hand, the new SR 15 million (US $4 million) plant at the coastal city of Rabigh, which is located 160 km north of Jeddah, is in its final completion stages and will be operational this September. This is the second station that the Company operates in Rabigh to supply concrete for the booming construction industry in the city. Saudi Readymix has signed more than SR 125 million worth of projects in the city to supply the huge Rabigh Refining & Petrochemical Co. (Petro-Rabigh) project of the Saudi Aramco and Sumitomo Chemical joint venture.

Construction on the SR 18 million (US $5 million) plant at Yanbu is about to start, after receiving all required approvals from the Royal Commission, and is expected to be operational before the end of the year. Unlike the previous two plants, the Yanbu plant is a commercial ready-mixed concrete plant that is planned to service the major petrochemical and industrial projects that are about to start in the Industrial City of Yanbu. 

The increased rate of development of new plants comes as Saudi Readymix executes a massive expansion program aimed at further consolidating its market leadership position. As the largest ready-mixed concrete producer in the Kingdom, the Company has an existing 19-strong network of commercial concrete mixing stations located throughout Saudi Arabia that are strategically positioned to serve construction projects in all major metropolitan areas in the Eastern, Central and Western Provinces. 

When both Khurais and Rabigh new plants are commissioned in the next few months, Saudi Readymix will be operating 5 on-site concrete plants at various locations in the country. The Company expects this number to double in the next two years as it pursues its ambitious growth plans.

Investment in additional projects this year will include the SR 20 million (US $ 5.3 million) commissioning of a new quarry located between Dammam and Riyadh, using state-of-the-art equipment to produce high quality aggregates for concrete production; and a SR30 million (US $ 8 million) purchase of eleven new truck mounted concrete pumps, which will bring the total number of pumps in operation to over 90.

Commenting on the strong performance of Saudi Readymix, the Company's President, Rami Alturki said,
"The award of a record number of prestigious new projects during the first half of this year, reflects the construction industry's confidence in the quality and reliability of Saudi Readymix. The strength of the Saudi economy - and that of the GCC region as a whole - has contributed to an extremely vibrant construction sector in which we are delighted to be playing a vital role."
"Our determination to be the industry leader is underlined by our commitment to employing and training a highly skilled team of professionals and is further enhanced by our drive to operate under the most stringent, self-imposed quality control regimen in the industry. This remains our guiding principle as we go forward with our plans for continued expansion and growth and sustained high productivity," Alturki added.

Saudi Readymix plays a major role in setting the industry standards as the most quality oriented concrete company in Saudi Arabia. It was the first in the Saudi ready-mixed concrete industry to be ISO 9000 certified, and the Company's ongoing success has been built on a total quality approach integrating raw materials, services, people, equipment, and finished products into a management system certified under the international quality standard ISO 9001-2000. Saudi Readymix is a corporate member of several international standards organizations and maintains links with national and international industry research bodies.