Business Review Europe & Middle East – June 2015

w w w.busine s sreviewe urop e.e u • June 2015

The Royal Commission for Jubail The Making Of A Modern City

Special Features On:

Astrachem

Momentive

Kunooz Oman

10

Top Places To WORK IN UAE MBAs Best Business Schools Marseille as a datahub

EDITOR’S COMMENT

The Geographical Advantage W E L C O M E T O T H I S M O N T H ’ S issue,

in which we look at a city that in many ways is the meeting point between Europe Africa and the Middle East. Marseille is an historic trading centre that is leveraging its geographical advantage in the digital age.

Do you think that an MBA is becoming something of a rite of passage? Something that anyone needs if they want to be taken seriously as a contender for the upper reaches of management (or indeed, by investors, as a founder of a new enterprise?) We have had a trawl around some of the most forward-looking business schools of the region to see how their thinking is evolving and how they think post-experience academic engagement can be made relevant.

Finally, if money is what interests you, reflect that even if cash transactions are endangered, coinage will never disappear from our pockets. The UK’s Royal Mint is, at more than 1,100 years, surely the oldest company we are likely to present: look within to see how its supply chain is being transformed.

Enjoy the issue!

John O’Hanlon Interim Managing Editor John.O’Hanlon@wdmgroup.com 3

Reason says: invest now to grow.

Instinct says: manage the current risks and challenges.

© 2014 Grant Thornton. All rights reserved. Authorised by Chartered Accountants Ireland (“CAI”) to carry on investment business.

Grant Thornton is a member firm of Grant Thornton International Ltd. (GTIL). GTIL and the member firms are not a worldwide partnership. Services are delivered independently by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. Please see www.granthornton.ie for further details.

CONTENTS

Features 8 TECHNOLOGY

The Marseille convergence: A Digital Meeting Place For Africa and Europe

16

FINANCE

Managing to learn: The MBA in flux

24 TOP 10

The UAE’s Top 10 Companies to Work for in 2015 5

CONTENTS

The Royal Commission for Jubail

Company Profiles

116

ENERGY 34 The Royal Commission for Jubail 58 Swire Seabed

34

3W Networks

MANUFACTURING 66 ASTRACHEM

SUPPLY CHAIN 76 M omentive Performance Materials

58

88 The Royal Mint 102 Aldrees Petroleum & Transport Services

TECHNOLOGY 116 3W Networks

EXPLORATION

Swire Seabed

136 Kunooz

88

The Royal Mint

126 Specialist Services

MINING 136 Kunooz Oman Holdings SAOC SPECIAL FEATURE

148 Giza Systems 7

TECHNOLOGY

The Marseille convergence: A DIGITAL MEETING PLACE FOR AFRICA AND EUROPE Marseille has the largest concentration of high bandwidth undersea cables entering Europe from Africa, the Middle East and Asia, equipping operators and corporations to better serve emerging markets to the south and east W R I T T E N B Y: J O H N O ’ H A N LO N 8

June 2015

OTTO VON BISMARCK once said something to the effect that geography is the only constant factor in international relations. Though he can hardly have foreseen the digital age, his insight holds true when applied to 21st century Marseille. France’s second city looks southward towards Africa and eastward to Italy and the Levant. You can still see the remains of the Graeco-Roman port of Massalia, founded around 600 BC and evidence that its natural harbour made it a centre of trade from the earliest times. In fact Marseille is the gateway to France, through which goods and immigrants have poured for many centuries.

What has this got to do with data?

Well, everything. A look at the network of modern telecommunication cables that converge in Marseille quickly shows why. They largely mimic the old trading routes across the Mediterranean, through the Suez Canal to the Gulf States, across the Indian Ocean to Bombay and Karachi and down the east coast of Africa to Mombasa, Dar es Salaam, Maputo and then Durban and Cape Town.

Marseille is a natural point of convergence for these data pipelines.

Europe’s great business centres all lie to the north, and to reach them the fibre optic has a lot of land to cross. The Eastern Mediterranean presents the continuing political risk of transit across 9

TECHNOLOGY the Balkans: a route through Italy would meet both the Apennines and the Alps: Marseille is the southernmost entrepôt of the EU and has none of these disadvantages. Once again, a simple matter of geography.

That is why Interxion (pronounced interaction), the NYSE listed data centre and ‘colocation’ specialist, was so keen to get up and running in Marseille that it purchased its latest data centre from SFR last August as a going concern. Typically Interxion builds its facilities from scratch, but MRS1, in a converted warehouse complex in the centre of the city, had plenty of elbow room for expansion within its 6,200 square metre footprint, direct access to all those submarine cables, and more than 70 network providers already on site.

Loom of global interconnectivity Connected directly to eight undersea cables, the datacentre provides space and interlinkage to global and regional capacity providers like AT&T, Vodafone, BT, Bharti Airtel, Maroc Telecom and Gulfnet; French carriers like Orange, Bouygues Telecom and Jaguar, and hosts many more through internet exchanges like 10

June 2015

France-IX. France-IX was already located at MRS1 when Interxion took it over. An internet exchange point (IXP) is a shared, physical facility where users, such as internet service providers (ISPs), eyeballs and content delivery networks (CDNs), can connect or ‘peer’ with one another to exchange internet traffic.

The data centre is a powerhouse. Its basement houses a rank of towering SDMO generators sitting quietly but ready to take over and provide more than 6MW of power if there should be an outage. The floors above house the customers’ equipment in rooms with raised floors, with cabling ducts running underneath to feed power to the cabinets. The environment is temperature and humidity controlled, with state of the art fire detection and control to ensure the performance and the operational integrity of the systems within. Security is everything to the customers so contractors and visitors are closely monitored.

Interxion operates 39 data centres at 13 cities in 11 countries. “The major cities are the hubs where the data converges,” explained Fabrice Coquio, Managing Director of Interxion France. “Frankfurt, Amsterdam,

THE MARSEILLE CONVERGENCE

Interxion MRS1-MMR

“Frankfurt, Amsterdam, London, and Paris (FLAP) between them account for 80 percent of the data centre market in Europe” - Fabrice Coquio, Président Interxion France

TECHNOLOGY For FLAP to become FLAMP, Marseille will have to be more than just a transfer city – it has the potential to become a content city too. Franck Simon, Managing Director of France-IX agrees that content providers turning their attention to the burgeoning markets of the Middle East and Africa – whose population is expected to surpass two billion by 2050 – see Marseille as the nearest politically stable location with the level of infrastructure they need.

Fabrice Coquio - Managing Director, Interxion France London, and Paris (FLAP) between them account for 80 percent of the data centre market in Europe.” MRS1 was acquired and equipped at a cost of €45 million rather than built on a greenfield site simply because of the time constraint, he said. Both Interxion and France-IX are finding that customers in Africa want a presence in Marseille to connect them with FLAP. 12

June 2015

Latency and latitude That’s just one reason why it was imperative to get capacity quickly – already customers are migrating from the legacy 750 watts per square (W/ m2) metre space to the ‘new’ 1,500 (W/m2) space Interxion is building.

Another is the imminent arrival in Marseille of AAE-1, the first high capacity cable system to link all of the major South East Asian nations to Africa and Europe via the Middle East. It will facilitate and provide support for the unprecedented growth of Asia-Africa trade, says Coquio, and provide a low-latency link to India, Singapore and China. “The cable will allow 40,000 connections

The Marseille connection via cable at 10 GB. It is huge!” He cites Airbus, which manages its pan-European business via a single 10 GB link between Hamburg and Toulouse.

It’s a no brainer, he believes, for the likes of Facebook and LinkedIn to either move some of their platforms from FLAP to Marseille, or simply to build new capacity at the gateway to their largest opportunity for expansion. “It is a complete revolution in how to organise traffic between Europe and Africa!” No

wonder then that Interxion France expects as much of this year’s order intake to be generated in Marseille as in its seven Paris datacentres.

Marseille could replicate the Stockholm effect. When Coquio noticed that his smallest facility in Sweden did more business one year than it had in the preceding 15 he wondered what the staff were on.

The answer lay in a newly laid cable that cut latency to five milliseconds (ms). Since American players, among 13

TECHNOLOGY them social media, account for 40 percent of Interxion’s business, their preference for keeping their physical presence in Sweden rather than within the important Russian market is clear. Stockholm all at once became a major gateway for northern EU and the former CIS countries. If Stockholm could become, virtually, a Russian city, Marseille can become an African city, he believes. In terms of latency it is 17 ms from Cairo, six to Tunis, and AAE1 promises to connect Marseille and Nairobi in 25 ms.

Why do a few thousandths of a second matter so much? The gaming website Twitch, a France-IX member, generates more traffic than YouTube, thanks to its video capture service, transmitted in full HD so that gamers can re-run their actions.

“The gamers are crazy about latencies. If it took an extra quarter of a second to kill an enemy you could lose the game!” says Franck

Simon. And as in-game betting gets more refined the window for placing a wager gets shorter.

Gulf attraction for Marseille’s IXPs Marseille has achieved critical mass in terms of internet connectivity. A Marseille-based internet exchange point (IXP) like France-IX, that already has a large number of peering global-content providers, will find that its presence attracts even more connections, argues Franck Simon. “This means that any Middle East operators who are also connected to the Marseille IXP will be able to get content from these global providers more quickly and so provide a better quality of service to their subscribers and, ultimately to their end users – the businesses and consumers in the Middle East.”

Middle Eastern network operators are showing interest in connecting

“Any Middle East operators who are also connected to the Marseille IXP will be able to get content from global providers quickly and provide a better service to their end users” - Franck Simon 14

June 2015

THE MARSEILLE CONVERGENCE

Interxion’s MRS1 datacentre

to Marseille IXPs. This might be because content hosted in the South of France is accessible much faster than anywhere else in Europe but, as there are a number of content providers already in existence in the Middle East, it is also likely to be because they are able to peer with a large number of eyeball networks and gaming companies.

The role of the IXP is critical to the development of a robust internet in the Middle East, which in turn will contribute to regional economic

growth. Without IXPs, the cost, complexity and performance of the internet would be untenable.

In the Middle East, as with any rapidly growing marketplace, it will be the early adopters of the benefits of IXPs – whether based locally or in Marseille - that will reap the benefits, Simon believes.

That is why France-IX has decided to expand its network in Marseille this summer by opening a second point-of-presence (PoP) in Jaguar Network’s MRS01 data centre.

15

FINANCE

Managing to learn: the MBA in flux We examine current attitudes to postgraduate management education and the evolution of Europe’s major business schools W R I T T E N B Y: J O H N O ’ H A N LO N

THE MASTERS IN Business Administration is recognised internationally as the leading postgraduate business degree. Ideally it should be much more than simply an academic business degree. It is a career development generalist programme, taking into account all major functions and practices of business, for those who have significant post-graduation work experience on which the learning 16

June 2015

process explicitly builds.

Specialist management education developed in the United States in the late 1800s as a response to the country’s rapid industrialisation, so the USA had a head start on the rest of the world when it came to establishing MBA programs. Though we tend to think of MBAs as a post-war phenomenon. The first course with that name was established at Harvard as long ago as 1908. In Europe, the

first MBA to be recognised was that offered by INSEAD, the renowned Paris-based institution whose former students include the politician William Hague and the financier and entrepreneur Julie Meyer.

Nothing could be more invidious than league tables, but they do show the linkage between intelligence, money and power. It is no coincidence that the man whose name graces a management school that offers one

of Europe’s highest rated MBAs in the FT’s Global MBA rankings for 2015, Sir Paul Judge, gained his at the third college on the list (along with LBS, the highest ranking of all European MBAs) – U Penn Wharton.

The University of Cambridge Judge Business School (JBS) was founded in 1990 with an £8 million endowment from Sir Paul and Lady Judge. JBS believes that producing the next generation of business superstars 17

FINANCE requires imagination. Its strategy is to admit a higher than average high proportion of people with nontraditional backgrounds, but who have an entrepreneurial spirit and are able to embrace new opportunities in a quickly changing business landscape.

One change that has already happened is the way entrepreneurship is practised rather than just taught in MBA programmes. After all, MBA students are already experienced professionals, who can’t be expected to sit on their hands for two years.

Paul Judge has also been for many years President of the Association of MBAs (AMBA), the only global accreditation body specifically for the qualification. In a recent article in the Independent, the AMBA’s CEO Andrew Main Wilson predicted five radical changes to the MBA environment: increasing recourse to alternative funding; greater specialisation; more focus on entrepreneurship; changes in curricula, for example to embrace CSR issues; and greater use of flexible learning methods like distance learning.

Read any major company’s annual report over the last five years and you will be struck by the focus shift from hard performance data to the 18

June 2015

Caption to the image

triple bottom line. They have woken up to the business case for social and environmental responsibility.

Leadership in this area has been shown by Audencia Nantes, one of the most committed management schools in the world in the area of CSR. It is one of only 30 champion schools worldwide for the UN’s Principles of Responsible Management Education.

André Sobczak, director of the

Institute for Global Responsibility at Nantes explained: “The full-time MBA was completely revamped in 2013 to become an MBA in Responsible Management. In the school’s other programmes, CSR is integrated through introductory courses, teaching projects and/or a cross-disciplinary approach resulting in ten percent of each course content being now focused on CSR.”

“Whatever the mode of delivery, AMBA accredited programmes must have at least 500 contact hours and 1,800 student learning hours” - Mark Stoddard, Director, AMBA

Blended learning In an academic institution it may be hard to embrace the flexibility that is being recommended. Mark Stoddard, Director of Operations at AMBA, thinks that it’s likely that in future all MBA programmes will include a percentage of hybrid/ blended learning, but unlike many of the current programmes the ‘blend’ will be up to the individual student. “If, for example, a web-facilitated course (which is commonly 30 percent or less delivered online) suits a student then that is what the student may choose. If however they prefer a web-dominant 19

FINANCE course structure (commonly 70 percent or more delivered online) then they may choose that.”

Done well, blended learning enables students to understand the basic concepts and knowledge of the MBA at their own pace, he added, while making the most use of the time in class to share experiences and develop important leadership skills.

“Whatever the mode of delivery, AMBA accredited programmes must have at least 500 contact hours and 1,800 student learning hours, but these can be delivered in a mix of synchronous (in real time) and asynchronous (flexible) formats.”

So who is leading the blended learning evolution? For best practice look for the Euro*MBA, a part-time executive MBA programme offered jointly by six European universities and business schools: Audencia Nantes School of Management, France; EADA Business School Barcelona; HHL Leipzig Graduate School of Management; IAE Aix-Marseille Graduate School of Management; Kozminski University Warsaw; and the lead institution, the Maastricht University School of Business and Economics in the Netherlands 20

June 2015

The need to relate theory and practice tends to be addressed in schools like the Newcastle Business School (NBS) at Northumbria University which has delivered its MBA programme for more than 20 years. Its head, Dr Guy Brown, says that employers and students appreciate flexible delivery modes that include full time, part time and distance learning, with the support of technologyenhanced learning. “Differing from the traditional dissertation element required for other Masters programmes,” he explained, “NBS MBA learners are required to carry out a management investigation project, which needs to address real problems and challenges facing a particular organisation, either in public or private sectors, and provide practical solutions and recommendations to the organisations.”

Over the past 10 years, Newcastle Business School MBA has been actively engaged with regional and local organisations and has helped develop more than 300 leaders in the north-east of England, significantly enhancing the regional business leadership pool. This raises interesting questions around another dilemma, the trade-off between internationalism in business schools and their

“MBAs can offer a broader understanding of business through considering issues such as financial resources, general management, information technology management and how they impact upon a business” - Anthony Sherick, MD of Technojobs.

responsibility to local industry, which in many cases supports them financially.

What’s it worth?

Just four percent of tech workers hold an MBA. “MBAs can offer a broader understanding of business through considering issues such as financial resources, general management, information technology management and how they impact

upon a business,” said Anthony Sherick, MD or Technojobs. “In terms of personal development, this formal business qualification helps you think like a business leader and will provide greater long term salary and career opportunities.”

When times are hard this is certainly true. Denis Kaminsky recalls starting his MBA at JBS in September 2008 the day after the collapse of Lehman 21

FINANCE

NBS at Northumbria Brothers. “On that first day, they told us: ‘We don’t know what this means, but as far as we can see, the worldwide economy is collapsing.’

So straight away, we were being challenged. Our student cohort started around 25 companies when we left, as there just weren’t any jobs.”

As seedbeds of entrepreneurship, it is hardly surprising that as corporate sponsorship declines students are looking to courses that consider their future earning potential rather than their credit rating to date.

22

June 2015

Average Salary Average Bonus Average To t al

Male

Female

£48,000

£55,000

15 %

£ 12 , 0 0 0

£ 15 , 0 0 0

25%

£60,000

£70,000

17 %

*SOURCE: Salary benchmarking site Emolument.com

Thomas Drewry, CEO of Emolument. com agreed: “Doing a MBA is a huge investment for anybody, both in terms of time and money, so it is important to understand what benefit you can expect to see at the end of your studies. As with any business

M A N A G I N G C U LT U R A L D I V E R S I T Y

decision, return on investment should be a key consideration, so having salary transparency around education and qualifications is an invaluable tool.” One statistic he offers shows this may be an area that does something to correct the gender imbalance.

Any other business qualification An MBA has a cachet all its own, but there are alternatives coming up on the inside rail. One of these is the MiM (Masters in Management) qualification.

Typically for pre-experience graduates, or at least candidates with a more limited management background, one big attraction is that a MiM degree generally costs about half the price of an MBA (around $40,000 vs $80,000).

Taking on a lower debt earlier in life, but with the potential of a fast-track career can be a highly attractive alternative for many applicants. It must also be noted that in some parts of the world, some great MiM programmes are entirely free of charge, for example in the Nordics or some German-speaking countries.

Roland Siegers, Executive Director of the CEMS global alliance of top business schools points out that the MiM market is not yet saturated, which means students have a better chance of

getting into a great school based mainly on their intellectual potential, and not on their ability to increase a school’s ranking position based on their postdegree earnings potential. “Beyond ROI, the MiM is certainly an attractive alternative for women because of the diverse cohorts in terms of gender found on many MiM programmes, which is much closer to a 50/50 split than the MBA. In terms of learning, the curriculum of a MiM can also have more flexibility, which allows for a high degree of innovation. Our faculty have mentioned that, because of their younger age, MiM students are more open-minded and fun to work with.”

Though most MiMs are for new graduates, at least one of the UK’s most renowned universities, the London School of Economics, is offering a serious alternative for more mature students. Executive Global Masters in Management (EGMiM) is billed as the LSE alternative to an MBA, providing the same outstanding training in management and leadership, but with a much deeper understanding of the geopolitical and socio-economic contexts which fundamentally underpin the success or failure of businesses across the world.

23

TOP 10

The UAE’s Top 10 Com TO WORK FOR IN We celebrate ten companies that go the extra mile to keep employees motivated, satisfied and appreciated What makes a company stand out, makes its employees glad they work there and attracts the top talent? A high level of credibility, respect, fairness, pride and camaraderie is something many businesses would claim

for their employees. But what the employees themselves say is the acid test. The annual Great Place to Work (GPTW) survey bases two-thirds of a company’s score on the confidential feedback of their staff, with an audit of management and HR practices comprising the remainder of the score.

“We’ve seen remarkable development in HR practices

mpanies

2015 in the UAE since we launched our ‘Top Companies to Work For’ study five years ago,” said Ron Thomas, CEO of GPTW Gulf. With the UAE government determined to make the country a top business destination, which celebrates diversity and innovation, more companies are realising the impact a positive workplace experience can have on this goal.”

During an awards ceremony in March at Rixos The Palm resort in Dubai, DHL was named Top Company to Work for in the UAE for the second consecutive year by the Great Place to Work Institute. After five years of evaluating workplace excellence in the UAE, GPTW says the UAE is on track to realise its ambition to become the best country in which to live and work.

25

TOP 10

FUN CITY Retail The core competencies needed for any Fun City employee, ‘Fun Citizen’, is to have a high degree of creative enthusiasm, service excellence, a smiling face and adaptability. To this end it has created an initiative called SPARK which stands for Spontaneity, Passion, Attention, Result, and Kindness.

9

www.funcity.ae

LEMINAR Industrial

10 26

June 2015

Leminar has strong CSR programs and community involvement. It implements best people practices and has built a culture in which employees are valued. Leminar conducts an “Employee Satisfaction Survey” which allows employees to share their views and innovative ideas. www.leminargroup.com

T H E U A E ’ S T O P 1 0 C O M PA N I E S

7

HYATT Hospitality Hyatt’s culture is centred on its people. New joiners coming from outside the UAE are welcomed at the airport by their assigned ‘buddies.’

Hyatt HR sends post cards and gives employees a call on their birthdays, and sends dinner vouchers for two on associates’ retirement anniversaries. www.hyatt.com

WEBER SHANDWICK Communications

8

Weber Shandwick recently moved offices. It made its in-house creative team work as a liaison between staff members and industrial designers and printers to ensure everything in the office represents the staff. From the plants chosen, to the imagery on the walls and even the bespoke welcome desk (custom-built to suit the height of the receptionist it chose to engage all team members when branding the company. www.webershandwick.com

27

TOP 10

5 MARRIOTT Hospitality /Hotel/Resort

6

THE ESTÉE LAUDER COMPANIES MIDDLE EAST Health and beauty The Estée Lauder Companies Middle East strives to build a culture in which employees are supported and respected.

New joiners are welcomed by a welcome card sent to them before joining. Expatriate employees are provided with a book called “Don’t they know it’s Friday” which is a resident’s guide and Dubai Map explaining some of the differences in living in the Middle East. www.esteelauder.com 28

June 2015

Marriott International Inc is one of the largest hotel operators worldwide and operates up to 4,200 hotels. The group follows an orientation and induction program called “In The Beginning”, in which new hires meet the management team and are introduced to the company’s culture, standards, history and milestones. www.marriott.com

T H E U A E ’ S T O P 1 0 C O M PA N I E S

3 OMNICOM MEDIA GROUP Media

THE ONE Retail

4

The One is arguably the top company when it comes to the visible commitment and engagement of the CEO. THE One set up THE Onederworld - a sustainable village community programme with balanced quality education at its heart.

Presently, six classrooms of a brand new school have been built in the Pimbiniet community in Kenya in conjunction with Free The Children.

OMG’s keen focus on work/ life balance makes it stand out as a leading example of how organisations should integrate health and wellness into a company’s culture.

OMG also enjoys genuine dedication and commitment from its senior leaders. www.omnicommediagroup.com

www.theone.com 29

Bosgraaf Group offers a total package

Bosgraaf Group’s state-of-the-art systems and service for the production of semihard and hard cheeses, is a result of the company’s extensive experience and innovative technical solutions.

With an unrelenting focus on performance, hygiene and sustainability, Bosgraaf’s bespoke production facilities ensure that an optimal solution is found across the organisation to suit the clients’ needs, including the use of robotics in mould handling and treatment lines.

Bosgraaf specialises in cheese moulding, handling and pressing systems as well as rack brining, treatment and maturation installations.

info@bosgraaf-group.nl www

www.bosgraaf-group.nl

T H E U A E ’ S T O P 1 0 C O M PA N I E S

ERICSSON Communications

2

Not only is creating a great place to work culture a challenge, what happens once you get there? Ericsson, in order to maintain a high performance culture, took the approach down to Talent Acquisition so that its recruitment and onboarding processes have added filters to ensure that it hires people who closely connect with its culture www.ericsson.com

31

TOP 10

1 DHL Logistics Being number 1 on the GPTW list for the second year in a row, DHL proved it puts its workplace initiatives on top of its strategic plans. This company has been busy implementing new 32

June 2015

initiatives to retain its winning position. DHL’s various people policies and practices are perfectly aligned to its corporate values, vision, and mission.

Its human capital work is centred on its ‘employee value proposition’ which includes

T H E U A E ’ S T O P 1 0 C O M PA N I E S

growth, impact and pride, all of which are evident from its onboarding programme to the customised learning and development plans each employee receives.

Every aspect of the employee lifecycle at DHL, from recruitment

to retirement, is closely aligned with the company’s core values, its business objectives and mission of inspiring people to give their best, both in and out of the office. www.dhl.com 33

JUBAIL:

The making of a modern city How technological innovation, sustainable development, and robust infrastructure put Jubail on the map Written by: Abigail Phillips Produced by: Craig Daniels

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R O YA L C O M M I S S I O N F O R J U B A I L

Jubail new city centre

O Royal Commission building in Jubail 36

June 2015

n 21 September 1975, The Royal Commission for Jubail and Yanbu (RCJY) was established as an autonomous organisation of the Saudi Arabian Government.

From day one, its mission was made very clear: to plan, promote, develop and manage petrochemicals and energy intensive industrial cities through successful customer focus and partnerships with investors, employees,

ENERGY

Key Personnel communities and other stakeholders. These industrial cities are Jubail, Yanbu and the newest project Ras Al-Khair.

When it was founded, the Royal Commission outlined a set of objectives which have underpinned its focus to this day. In essence, those objectives sought to raise the profiles of Jubail and Yanbu and put them on the map as areas ripe for foreign investment;

Ahmed Al-Balawi General Manager of Technical Affairs

w w w. r c j y. g o v. s a

37

A NEW PATH TO GROWTH

ASSYSTEM-RADICON, YOUR NEW ENGINEERING PARTNER IN THE KINGDOM Assystem is an international independent engineering company, with nearly 12,000 employees worldwide. With 50 years of expertise in the nuclear sector, Assystem is now expanding its presence in Saudi Arabia.

With operations spanning across verticals such as transportation, infrastructure, construction, and nuclear, Assystem brings extensive skills, know-how and global technology to the region. Seeking insight into the local industry networks and develop the Saudi talent pool, the company joined hands with Radicon, a leading local engineering consultancy with more than 400 employees in Al Khobar and Riyadh.

ASSYSTEM STEPS UP ITS PRESENCE IN SAUDI ARABIA INTERVIEW WITH STÉPHANE AUBARBIER, Executive Vice-President of Assystem and CEO of the division Energy & Infrastructure

In January this year, Assystem, an international engineering company, completed its acquisition of 75% of the Saudi Arabian design company Radicon Gulf Consult. Stéphane Aubarbier, Assystem Vice-President explains why it was a “win-win” for all parties.

“As the 4th independent nuclear engineering company worldwide, Assystem wanted to strengthen its footprint in the GCC region- which is currently developing strongly in the nuclear energy sector.

The company’s business model relies on building long-term links with local clients, which only an acquisition enables. Radicon, a 400-strong Saudi engineering company, fulfilled this need; since they understood the local market and had a reputation for quality and excellence, they were the natural choice.”

© Photo Credits: Assystem

“Radicon was enthusiastic too as some of its main clients wanted them to join forces with a western engineering company to bring in complementary skills. Today, Assystem - Radicon together are winning contracts that neither could hope to win alone.”

Assystem-Radicon brings a new engineering offer in the Kingdom of Saudi Arabia.

“In the Gulf, there is still enormous potential for investments in energy, infrastructures and transports. Our strategy is to build a high-performance engineering company that is destined to last.”

“Indeed, Radicon will strengthen

the group’s outreach in Saudi and more globally in the Arabian Gulf, enabling us to support our clients locally in this region. Moreover, the

strong technical expertise of Radicon in infrastructure’s design as well as its understanding of the local environment combined with Assystem’s international reputation and historical expertise in complex project management, namely in nuclear, will enable us to be a reliable and efficient partner to our Saudi clients.”

Assystem’s model is to transfer its expertise to local delivery centers.

“We aim to place a strong emphasis on recruiting local engineers and implement different training programs to transfer Assystem’s historical expertise

namely in the fields of nuclear but also in project management and systems integration to local experts.”

Assystem was first active in the Gulf in 2011 through its participation in the UAE nuclear programme and its technical assistance subsidiary, MPH Global Services. In September 2013, Assystem relocated its energy and infrastructure division’s global headquarters to Dubai.

Today, Assystem has more than 1200 employees in the MEA region across its offices in the UAE, Qatar, Yemen and the Kingdom of Saudi Arabia... www.assystem.com www.radicongulf.com @Assystem

SUPPLIER PROFILE

RADICON Assystem-Radicon offers expertise in complex engineering projects across the infrastructure (building and transportation), energy (power, oil and gas), and nuclear sectors.

Assystem-Radicon supports businesses, such as EPC, operators and public bodies, in managing their industrial investments, from design through to dismantling, including commissioning, operations and maintenance.

We have 4 key offers: project management, engineering design, systems integration and engineering, procurement, construction management (EPCM).

Assystem-Radicon has been working on major industrial city projects such as Jubail. So far, the company has been delivering 7 million hours of engineering design for transportation, building, power and telecommunications infrastructures.

Assystem-Radicon was created out of the merger between the Saudi engineering company Radicon Gulf Consult and the international engineering group Assystem. Today Assystem-Radicon has over 400 employees between Al Khobar and Riyadh, and can manage projects all over the Kingdom. Assystem-Radicon provides clients with the proximity and flexibility that only a local company can provide, while benefiting from the expertise, quality standards, and networks of Assystem, which has nearly 12 000 employees throughout 20 countries and is recognized as the 4th nuclear engineering company worldwide.

T H E R O YA L C O M M I S S I O N F O R J U B A I L

ENERGY

encourage private sector investment in the regions; and develop the cities from both a human and environmental perspective.

A focus on Jubail Jubail Industrial City is a Saudi model that tells the story of planning combined with the will to achieve the comprehensive civic and industrial development seen today at all local, regional and international levels.

There is no doubt that the advanced infrastructure of Jubail is the cornerstone which has allowed the various industrial, commercial and social sectors to establish themselves through integrated action. Jubail infrastructure has the capability to operate continuously without failure of power or supplies

Jubail industrial city

Artist’s Impression of Jubail City Centre

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An Inspired

Evolution For over 35 years, we have been working with our customers and partners in translating their vision and ambition into the delivery of successful projects and services.

Inspired by their challenges and by working together to find the right balance between ambition and sustainability, each project and service delivered forms an integral part of not only their success – but ours as well.

966 13 843 3336 • info@almashariq.com

Our History dates back to 1978 when Al Mashariq was established to provide support services for the electrical distribution infrastructure of the Saudi Electricity Company (then DEPCO) in the Eastern Province of Saudi Arabia.

Since its incorporation, and as a result of the growing needs of its customers, Al Mashariq has evolved into a multidisciplined organization serving a wide range of market segments.

Presently, Al Mashariq is operating as a main contractor and technical services provider in the following key areas: • Power Generation, Transmission, Distribution and Control Automation • Water and Waste Water • Telecommunications and IT • Industrial and Commercial Civil Infrastructure Our Philosophy Is to differentiate ourselves by harnessing technology and leveraging our in-depth knowhow gained from over 35 years of operation to offer our valued clients creative, sustainable solutions and services.

We believe that customer satisfaction can only be achieved through a firm commitment to understanding the intended results of our customers’ requirements and working closely with all stakeholders involved in bringing those results to fruition.

With a focus and drive in providing engineered, value added solutions, we at Al Mashariq are committed to ensuring our solutions and services meet our customers’ requirements and contribute to their success Our Vision Is to be a preferred EPC Contractor and services provider in the fields of electrical generation, transmission and distribution, water, telecom / IT and construction infrastructure while contributing to the technical, economic and social development of the region.

Our Mission Is to provide innovative, cost effective, sustainable solutions and services that meet both immediate and future needs of our clients through the principles of value added engineering, integration of skills and technology and continuous improvement.

www.almashariq.com

SUPPLIER PROFILE

AL MASHARIQ Al Mashariq Company is a multifunctional group which provide engineering services in the Power, Telecom, IT, Petrochemicals, Water and Civil Construction sectors in the Kingdom of Saudi Arabia. It is our vision to become the market leader in engineering contracting in the above sectors in the Kingdom and other Gulf Countries, whilst ensuring the highest level of customer satisfaction and quality standards and to contribute to the technical, economic and social developments of the region.

Al Mashariq Company has witnessed extra ordinary strides in its growth during the past 30 years and aspire to acquire new heights in volume of business and to broaden its business activities through diversification in related fields. Al Mashariq Company shall operate in existing and new business which profitably capitalise our Corporate image of reliability and integrity.

It is also our vision to ensure high standards of leadership in productivity and total quality management so as to offer best services to our customers. We also stand for fostering a culture of participation and innovation for employee growth and contribution.

We believe in the principle: “The excitement of attaining the unachievable is a huge motivator for growth�.

www.almashariq.com

T H E R O YA L C O M M I S S I O N F O R J U B A I L in any of the existing facilities while meeting community requirements within modern, high living standards where all the necessities of life and tourist and recreational facilities are available. However, there is still work to be done to upgrade and expand the infrastructure to allow the private sector to participate in the growth and development of the city.

Additionally, Jubail has been able to attract the necessary Saudi operations and maintenance manpower, which has in turn, led to the establishment of a community from the various areas in Saudi Arabia. Jubail is indeed the result of Insights of the wise leadership of the Kingdom of Saudi Arabia.

ENERGY

‘Jubail has been able to attract the necessary Saudi operations and maintenance manpower, which has in turn, led to the establishment of a community from the various areas in Saudi Arabia.’

Part of Al-Fanateer Beach in Jubail Industrial City

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Abdullah Ahmad Al-Doss

T 966 3882 9027 F 966 3882 5761 E info@aldossary.c

Construction division Line Of Business - Constuction

• Roads & Bridges • Civil Infrastructure • Special Projects Our Clients

• Water & Sewer Lines • Road Maintenance

sary Holding Co.

com.sa

Commercial division Line Of Business - Commercial • Pump Service Center • Spare Parts Division • Metalock Engineering • Metalock Cold Repair • Curb Factory • Asphalt & Crusher Plants • Repair & Maintenance of Heavy Equipments • Hydralic Division

Visit us online at www.aldossary.com.sa Our Brands

P.O. Box 973 • Al-Khobar 31952 • Kingdom of Saudi Arabia

SUPPLIER PROFILE

ABDULLAH AHMAD AL-DOSSARY HOLDING CO. Current contracts: EPC of Roads Linking to Ras Al Khair, Phase I, Client: Royal Commission in Jubail The work consist of the provision of the detailed Engineering design, Procurement and Construction of approximately 42 km of roads, two (2) interchanges, four (4) bridges and a pre-engineering buildings for Residential and Services Compound (accommodation, building, mosques, clinic, fire stations, sport center) with furniture and fixtures and equipment, underground utilities, drainage channels, parking, lift stations, instrumentations, electrical power distribution system, including associated site works and underground utilities.

Jubail Industrial City and Ras Al-Khair, Kingdom of Saudi Arabia Value Saudi Riyals 522.19 M PC of Roads Linking to Ras Al Khair, Phase I, Client: Royal Commission in Jubail Procurement & Construction of roads, bridges, vehicular culverts, drainage system, telecommunication system, underground utilities, crossing structures, electrical power distribution system, street lighting and traffic system. Ras Al-Khair, Kingdom of Saudi Arabia Value Saudi Riyals 468.00 M

T H E R O YA L C O M M I S S I O N F O R J U B A I L The making of a modern city In the city, the main development focus is on energy projects and subsequent infrastructure management. In recent years there has been a huge emphasis on innovation from an energy standpoint that has led to greater efficiency and sustainability for the city now and in the future.

In the next 12 months, there is no sign that the innovation trend is slowing. In fact Jubail continues with its year-on-year growth as reflected in the number of projects completed in engineering, awarded in procurement, and delivered to construction for execution. At the end of 2014, there were a total of 99 active contracts in various stages of construction with a combined value of $5.3 billion. Out of those 99 projects, 22 were contracts being

ENERGY

“Jubail Industrial City is rapidly growing in all directions, based on the Master Plan Strategy, towards a complete sustainable city” – Ahmed Al-Balawi General Manager of Technical Affairs

Ras Al Khair industrial city

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R O YA L C O M M I S S I O N F O R J U B A I L

Preciously Integrated RC BUILDING

KOBAR HOSPITAL

• BUILDINGS CONSTRUCTION “CLASSIFIED AS A” • MAINTENANCE AND DEVELOPMENT OF MECHANICAL AND ELECTRICAL WORKS • WATER WORKS AND SANITATION • INFRASTRUCTURE

OUR CURRENT PROJECTS

AZIZYA COMPOUND

CONSTRUCTION OF ADMINISTRATION BUILDINGS, RC JUBAIL (097-C32)

ROYAL COMMISSION

JUBAIL, KSA

SECONDARY INFRASTRUCTURE & CONSTRUCTION OF HOUSING- PHASE 10, JUBAIL ROYAL COMMISSION, 815-C17

ROYAL COMMISSION

JUBAIL, KSA

CONSTRUCTION OF THREE SUBSTATIONS IN MANIFAH

SAUDI ARAMCO/HYUNDAI

MANIFAH, KSA

CONSTRUCTION OF HOUSING FOR MILITARY ARMED FORCE IN EASTERN AREA

MINISTRY OF DEFENSE

DAMMAM, KSA

HOSPITAL HASSA & KHOBAR (WITH 5 BUILDING ADDITIONAL WORK)

MINISTRY OF HEALTH

HASSA/KHOBAR, KSA

SAKAKA PROJECT (CONSTRUCTION OF 521 VILLAS)

MINISTRY OF HOUSING

SAKAKA

RESIDENTIAL & INDUSTRIAL COMPLEX, HAWTAH, SAUDI ARAMCO

SAUDI ARAMCO

HAWTAH, KSA

contact us

OUR AFFILIATES

info.kcc@alkifah.com

T 00966 (0) 13 845 9502 F 00966 (0) 13 845 9501 Visit our Website

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May 2015

Alkifah Tower • Opposite Chamber of Commerce • PO BOX 7973 • Dammam • 31472

T H E R O YA L C O M M I S S I O N F O R J U B A I L undertaken in Ras Al Khair and 47 were contracts under preparation in both cities.

“Jubail Industrial City is rapidly growing in all directions, based on the Master Plan Strategy, towards a complete sustainable city,” explained Eng. Ahmed Al-Balawi General Manager of Technical Affairs. “The industrial area will be expanded to accommodate an industrial and logistics hub. We are also working with the Saudi Railway Company (SAR) on the development of a rail network, which will support industries and the supply chain.”

However development is not just underway from an industrial perspective, work has also commenced in three community districts that will be developed to accommodate 150,000 residents and that will provide 27,000 housing

SUPPLIER PROFILE

ENERGY

Housing Units in Jubail Industrial City

ALKIFAH HOLDING COMPANY

AlKifah Holding Company created a name for itself by participating in many economic and investment sectors, the most important one of them is the building and construction sector which includes many companies, building material and building equipment “contracting”, real estate and precast. All these companies unite to give the best services in the building and construction field, and selling buildings. Through determination, dedication and hard work AlKifah Holding Company was established more than 30 years ago. Currently at its prime, AlKifah Holding Company board members Al Afaleq brothers reached ultimate prosperity aspiring to move further in their triumphant achievements

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Mohammed Al Barghash Al Mansouri & Sons Trading & Contracting Company

Build and Maintain

We specialise in • Pipeline Construction • Rehabilitation of Oil , Gas, Water and Sewage Water Pipelines

• Industrial Plant Maintenance Services • Instrumentation • Electro-Mechanical Rehabilitation • Tele-Communication • Electrical • Civil & Earth Moving

Head Office Address P.O Box 31996 • Al Khobar 31952 • Kingdom of Saudi Arabia T + 966 (13) 864 1522/ 869 3345/ 893 9333/ 894 0444 F + 966 (13) 899 9603 / 895 3198 E info@mbtc.com.sa

T H E R O YA L C O M M I S S I O N F O R J U B A I L units, including all associated amenities to address the population growth. This will represent a growth of 100 percent, in comparison with the current residential footprint.

Alongside this, the Jubail University College mega project will provide better education opportunities for future generations and will enable the Royal Commission to achieve its goal of fostering a knowledge-based, educated and innovative society. It is hoped that the city centre development, which is under construction today, will attract major corporate offices, provide a variety of needs for city residents, and improve the image of the city, while contributing to the economy and long-term diversification

ENERGY

Plans fo rthe new Jubail University college campus

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T H E R O YA L C O M M I S S I O N F O R J U B A I L

Jubail City Centre

But Jubail is not the only city in the spotlight as Eng. Al-Balawi explains: “In Ras Al Khair, we also achieved significant momentum after awarding three major development contracts, and are on the right path to meet the schedule that was presented to the Royal Commission leadership in 2010. The recently opened road between the two industrial cities, with its excellent quality, was a significant and important milestone that was appreciated by all stakeholders involved,” he said.

“In our journey, we have kept safety and quality as our prime focus. This year we have achieved a record of 13.8 million safe man-hours. With a

Sales@spacetopksa.com • www.spacetop.com.sa

Space Top co. LTD

Knowledge@detecon:

Support from strategy through to implementation

Land Mobile Radio Communication • Marine Radio Communication Marine Navigation Equipment • Satelite Phone • Paging System Network Cellular Network Repeater • Radio Antennas and Accessories Other Telecom Products and Services • Security & Safety System Jubail office Dammam office

54

T 01336 25585 F 01336 18929 T 01383 26011 F 01383 46166

P.O Box 9010, Dammam 31413, Saudi Arabia M ay 2015

We make ICT strategies work

www.detecon.com info@detecon.com

ENERGY

contractor workforce of around 20,000 spread over 200 sites and a large worker turnover.”

Building a smarter city So what does it mean to be a truly sustainable city? Innovation, IT and data services certainly play a vital role, as Eng. Al Balawi explained: “We think the most innovative aspect of the industrial city is long term city planning which helps us meet future demand. From an IT perspective in particular, the civil infrastructure of duct banks with future provision has simplified the installation of a fibre optic network.”

It goes without saying that in today’s highly connected world, a robust telecommunications network is going to be central to winning ‘smart city’ status. “Recently we have completed

“This year we have achieved a record of 13.8 million safe man-hours.

With a contractor workforce of around 20,000 spread over 200 sites and a large worker turnover.”

– Eng. Ahmed Al-Balawi, General Manager of Technical Affairs

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T H E R O YA L C O M M I S S I O N F O R J U B A I L

Aerial view of Jubail Industrial City

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ENERGY

the replacement of the telecommunication networks across the city and many residential and industrial areas have been equipped with fibre optic. However, a smart city is not just about installing fibre optic cables; it is a much wider concept, which involves providing comprehensive infrastructure and services to business and the community as a whole,� said Al-Balawi.

Introducing the district cooling concept As well as bringing technological advances to within the city walls, the Royal Commission has also introduced a district cooling concept, which is currently in development. The aim of the new cooling system is to improve power consumption across the city, while also allowing high density and diverse usage to occur. For example, the new system will allow cold storage of energy to avoid energy outages during peak hours. Arising from this concept, the city hopes to attract new industries and foreign investors to the area.

The Royal Commission has set a goal to raise the standard of the three cities in a wholesome and all inclusive way. Not content with papering over any cracks, every detail has been considered, no matter how large or small. Robust infrastructure, technological innovation, sustainable development and social considerations have set Jubail, Yanbu and Ras Al-Khair in good stead to flourish now and in the future.

Company Information INDUSTRY

ENERGY HEADQUARTERS

Jubail Industrial City, Saudi Arabia FOUNDED

1975 EMPLOYEES

+3000 REVENUE

Not disclosed PRODUCTS/ SERVICES

City planning and development

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SWIRE SEABED Thriving worldwide Written by: Sam Jermy Produced by: James Pepper

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SWIRE SEABED

Henry Cesar OM

The specialist subsea company, supported by a prestigious parent group, is beginning to build on its own stellar reputation by expanding its international oil and gas related projects.

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espite testing times in the industry, Swire Seabed is looking forward to a new era full of international opportunities.

Founded in 2008, and purchased by Swire Pacific Offshore in 2012, Swire Seabed provides a highly flexible range of integrated inspection, maintenance and repair (IMR) and subsea construction services to the oil and gas industry.

It also has a strong subsea engineering team that delivers decommissioning, survey and dredging projects. The company is a pioneer in deep water salvage operations and is one of the only companies globally which owns and operates a ROV at depths of up to 6,000 metres. Operations are coordinated from its headquarters in Bergen,

ENERGY

Norway with an office in Baku, Azerbaijan set up mainly to support BP’s IMR and subsea requirements in the Caspian Sea. Arvid Pettersen, CEO of Swire Seabed, said: “The origins of the company lie in deep water salvage work, and today we have approximately 175 employees who maintain those pioneering skills but now focus primarily on the oil and gas industry.

Cargo recovery is the icing on the cake for the business. People love that kind of work because it is out of the ordinary. Take the recovery of the engines from the NASA Apollo 11 space programme for instance: It was a fantastic experience for the crew and everyone involved enjoyed doing this exciting work with someone as dynamic as Jeff Bezos.

Key Personnel

Arvid Pettersen CEO of Swire Seabed

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SWIRE SEABED

Retrieving an ROV

«

“We have established an excellent reputation in a relatively short space of time. Much of our work is a result of previous successes and comes from word-of-mouth referrals from our clients.

Last year, we won a contract with Shell, and the partnership has been ongoing since then.

“Being a part of one of the largest companies in the offshore industry, Swire Pacific Offshore, is a huge benefit to Swire Seabed. Swire takes a long-term view of business, and this has allowed Swire Seabed to invest, develop and grow its own business. In times of industry recession, we are very fortunate to be in this position, and we stand in stark contrast to many in our industry”.

bergen@kluge.no www.kluge.no/en Stavanger » Oslo » Bergen

+ 0047 55 94 17 40 • jens@asmekanikk.no

Manufacturing and Repairs for the Shipping & Offshore Industry

Our team is

open,

commercial

»

and looks for

solutions

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AS Mekanikk • Gravdalsveien 245 • 5164 Laksevåg • Norway

ENERGY

Group-wide network Being part of Swire Pacific Offshore provides Swire Seabed ready access to a global network of offices, vessels and expertise as well as a degree of financial certainty that is rare for smaller companies. With a fleet of three vessels, Seabed Prince, Seabed Worker and Seabed Supporter, Swire Seabed is able to tap into the expertise and assets of the wider Swire Pacific Offshore group when needed. The 43 offices and 88 vessels within the Swire Pacific Offshore fleet gives Swire Seabed unrivalled scope for a company its size.

Pettersen agrees that capitalising on the wealth of expertise and experience of its parent company is one of the key drivers behind Swire Seabed’s rapid expansion phases, with targeted growth areas around the world and hotspots such as Asia Pacific, West Africa and South East Asia within easy reach.

Pettersen said: “That’s where our focus is, to enhance the group’s capabilities and leverage

“Swire takes a long-term view of business, and this has allowed Swire Seabed to invest, develop and grow its own business.

In times of industry recession, we are very fortunate to be in this position, and we stand in stark contrast to many in our industry.”

- Arvid Pettersen, CEO of Swire Seabed

Seabed Worker

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SWIRE SEABED

Seabed Excavator

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on the local knowledge and expertise that has been built over the 40 years that Swire Pacific Offshore has been operating. Integration is a key focus for us as we need to tap into these invaluable resources in an effective way that will be beneficial for both the subsea and OSV sides of the business. Being part of a larger entity also provides great opportunities for our workforce.� “Currently, our centre of excellence for subsea services is in Bergen, Norway where we also train engineers and ROV pilots. For subsea operations, we are in the midst of developing our own internal

ENERGY

training programme and will tie up with SPO’s flagship training centre, Swire Marine Training Centre in Singapore.”

Vision Swire Seabed has been benefiting from its group-wide facets and is expanding into different regions. The management is confident that capitalising on the downturn by expanding its fleet, its product lines and geographical coverage is the right thing to do.

Pettersen concluded: “Currently, our main operations have been in the North Atlantic, from Canada, to the US, the North Sea and Northern Norway. Moving forward, with a greater installed base of subsea assets in the southern Atlantic and in Asia, it is natural that Swire Seabed will leverage on Swire Pacific Offshore’s strong presence in these areas. Likewise, we will invest heavily in our equipment, and incorporate state-of-theart technology, to prepare for the increasingly complex jobs that the industry undertakes. Take for instance, the in-house designed Seabed Excavator, is capable of working at depths of 2,500 metres utilising a range of different tools from cutting tools to suction excavators. Being nimble and small ensures prompt and flexible responses to clients, yet having ready access to the expertise and resources of the large conglomerate it belongs to, means that Swire Seabed is an agile business that looks set for more exciting growth in the coming years.”

Company Information INDUSTRY

Energy HEADQUARTERS

Bergen, Norway FOUNDED

2008 EMPLOYEES

51-200 REVENUE

$90m PRODUCTS/ SERVICES

Oil & Energy

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ASTRACHEM

Astra Industrial Complex Co. Ltd. for Fertilizer and Agr

Benefiting From Its Diverse Offerings Written by: Sam Jermy Produced by: Heykel Ouni

rochemicals

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ASTRACHEM

Plant overview

The company has expanded across the MENA region in recent years, and is now set to reap the rewards

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strachem is a well-established company most notable for its specialist work in the agriculture and chemical sectors, and is now set to enjoy more growth across the Middle East and North Africa (MENA) region.

The firm, known as Astrachem but formally Astra Industrial Complex, is part of the AIG conglomerate and was founded back in 1988.

It provides tailor-made turnkey solutions to farmers in over 25 mainly MENA countries in the form of fertilizers, pesticides, seeds and plastic.

Due to the success in branching out to a wider customer base, the company has been making major investments in new warehousing and manufacturing facilities in Morocco and Egypt, which will complement existing units

M A N U FA C T U R I N G

Key Personnel

Yehia El Azab CEO

in Damman, Saudi Arabia and also in Turkey through its subsidiary AstraNova.

Yehia El Azab, CEO of Astrachem, said: “We have a far reaching presence, mainly in the MENA region but even in places such as Uzbekistan, Ukraine and remote parts of Africa. We plan to keep investing in the agriculture sector, potentially expanding into the larger US and European markets, so that is the direction we are going. “Due to the water scarcity, there has been a drop in the development of the agricultural sector in Saudi Arabia. Over the past 12 years, cereal production in Saudi Arabia has almost dropped to zero. The export of open field agriculture has been banned and farmers can no longer export open field fruits or vegetables.

Prior to joining AIG (Astrachem), served in the position of General Manager & Sales Director Middle East in SQM (Adfert) for a period of more than 7 year leading the MENA operations by planning and running an annual budget of over $60 million.

Currently assuming the role of CEO in Astrachem with a vision to cross the $350 million mark within the next few years.

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FMC Corporation Vision By focusing on innovation, customer intimacy and safety, we intend to foster The Right Chemistry in everything we d

FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally for more than a century with innovative solutions, applications and quality products. In 2014, FMC had annual sales of approximately $3.3 billion from continuing operations.

The company employs approximately 5,000 people throughout the world, and operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium.

Ever since our beginning in California in 1883 when John Bean invented the first piston sprayer for agriculture, FMC has continued a proud heritage of pioneering solutions for our customers. Today, we

use an array of advanced technologies in manufacturing, research and development to produce customized products and solutions for the many markets we serve.

As a global leader utilizing advanced technologies and customer-focused research and development, FMC provides innovative and cost-effective solutions to enhance crop yield and quality by controlling a broad spectrum of insects, weeds and disease, as well as in nonagricultural markets for pest control. Our food ingredients are used to enhance texture, color, structure and physical stability. The pharmaceutical additives are used for binding, encapsulation and disintegrant applications. Some of our

T 00971506534788 E saleh.shiha@fmc.com • www.fmc.com • FMC Agricultural Produ

Protection of crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits and vegetables from weed growth and for non-agricultural applications including turf and roadsides

er do!!

• Carfentrazone-ethyl • Clomazone • Fluthiacet-methyl • Sulfentrzone

products are increasingly being used as active ingredients in nutraceutical and pharmaceutical markets. Our lithium products are utilized in energy storage, specialty polymers and pharmaceutical synthesis.PHILADELPHIA, April 21, 2015, FMC Corporation announced that it has completed the closing of its acquisition of A/S, a multinational crop protection company based in Denmark and a wholly-owned subsidiary of Auriga Industries, FMC completed the acquisition of Cheminova for an aggregate purchase price of approximately $1.8 billion. With this big investment and expansion, we FMC Agricultural Solutions are now the seventh largest crop protection company

Protection of crops, including cotton, sugarcane, rice, corn, soybeans, cereals, fruits and vegetables from weed growth and for non-agricultural applications including pest control for home, garden and other specialty markets

• Bifenthrin • Cadusafos • Carbofuran • Carbosulfan • Cypermethrin • Parmethrin • Zetacypermethrin

Protection of crops, including fruits and vegetables from fungal disease

• Iprodione • Prochloraz • Benalaxyl

in the world—a stronger business with broader global access, complementary technologies, an exciting pipeline of new products, and deeper regulatory expertise.

With combined sales of $3.3 billion for Crop Protection Only and nearly 5,000 Agricultural Solutions employees, we have the scale and resources to compete with the industry’s biggest leaders.

We have Global Presence in all continents; NA, LA, Asia Pacific and EMEA and particularly in ME we are well represent and working through assigned professional and reputational distributors in all countries and we have Rep Subsidiary Office in Dubai – UAE to serve this potential and growing region:

®

®

insecticide

ucts International A.G • Dubai • UAE • RAKFTZ • P.O. Box No. 35741 Dubai

SUPPLIER PROFILE

FMC CORPORATION

Today, FMC Corporation is a diversified chemical company serving agricultural, industrial and consumer markets globally with innovative solutions, applications and quality products. The company employs approximately 5,000 people throughout the world including the areas of Asia-Pacific, Europe-Middle East-Africa, Latin America South, Latin America North and North America.

All totaled, FMC has been serving agriculture for more than a century— long enough to know that new threats are always on the horizon. Crop by crop, region by region, we’re dedicated to meeting these challenges head-on with innovative herbicides, pesticides and fungicides that add value to your operation. Bottom line, we’re in this together and the only factor that determines our success is yours.

Management Pierre Brondeau (CEO) Tel +1 215-299-6000 Address 1735 Market Street, Philadelphia PA 19103, USA

ASTRACHEM

M A N U FA C T U R I N G

But the direct result of this is that more attention is being paid to high-tech agriculture, where you can have farms in greenhouses.

“So, in the next five years a lot of projects are coming up for greenhouses and indoor farming.

So the farmers can export these products as well.

Other than that, we have faced some difficulties, because of a 40 percent drop in the size of arable land. There was a complete stop in this area since 2008 to 2012. Now we are over this crisis and are geared to start with high-tech farming.”

Agricultural player There was a time when Saudi Arabia was exporting cereals and wheat to other countries, but today it focus its strengths in a few main crops due to various regulations that control production in the Arab country.

It is now pursuing large investments in countries like Sudan, Egypt and Ukraine where projects involve the farming of alfalfa and wheat, which uses up most of the water in the soil. In addition to supplying raw material for agriculture, it is very cost-effective to produce in Saudi Arabia and El Azab believes Astrachem can be very competitive in this field.

Other factors such as Saudization have to be considered going forward, but other than that you can easily produce in Saudi Arabia and export to neighbouring Asian countries as well as the MENA regions.

El Azab said: “Our main ports in Dammam and

In the lab

“In the next five years a lot of projects are coming up for greenhouses and indoor farming” - Yehia El Azab, CEO

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ASTRACHEM

Granular NPK production line

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Jeddah are getting faster and more efficient every year. It has become very convenient for us to serve the neighboring countries with low freight costs or in countries where we can use the raw materials produced in Saudi Arabia.

Saudi still has an edge over other countries.

We can use the country to export more in the coming five years. “We find solutions for the farming needs or requirements that are characteristic to each country; be it climate, soil conditions or traditional farming conditions. We also make use of our synergies between our facilities in Turkey and Saudi, which have always been our two main markets. Pesticides are produced in both countries and we have spent five years in production at our AstraNova facilities in Turkey,

M A N U FA C T U R I N G

which has seen renewed investment.”

Future plans In terms of growth markets, Astrachem management see many Asian countries as key focus areas for the future. Two years ago the company started exporting to Vietnam and Taiwan, and will be concentrating on further emerging markets like Pakistan going forward.

For El Azab, it makes logistical sense to export to these countries as his organisation attempts to muscle in between Europe and China and compete for business by offering high quality products at reasonable prices.

A lot of firm’s 400-plus products are either aligned with a multinational logo or a multinational company is allowing Astrachem to produce their product under a brand name.

Consequently, the Astrachem brand image is spreading across multiple countries.

“We are looking forward to going upstream into further production in various other fields which will serve our customers faster and in a cost-effective manner. We believe we can share a part of China’s export market, and strategically we see some future in this area.” said El Azab.

He concluded: “Every year, we are growing at a rate of double digit figures and we are one of few that produce such a wide range of products under one umbrella, so we are confident for the future as farmers know they can rely on us to meet their high expectations.”

Company Information INDUSTRY

Manufacturing HEADQUARTERS

Saudi Arabia FOUNDED

1988 EMPLOYEES

250 REVENUE

80 Million USD PRODUCTS/ SERVICES

Fertilizers and Agricultural chemicals

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MOMENTIVE PERFORMANCE MATERIALS

Going with the flow Written by: John O’Hanlon Produced by: Richard Durrant

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M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Momentive Performance Materials Inc. (Momentive) is a global leader in silicones, quartz and ceramics, with a 70 year heritage of being first to market with performance applications for major industries that support and improve everyday life: we took a look at how supply chain excellence underpins its global manufacturing best practices.

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ess than a year after the global silicones, quartz and ceramics specialist Momentive Performance Materials Inc. (Momentive) filed for bankruptcy, saddled by corporate debt it could no longer service, a leaner and fitter company has emerged. A balance sheet restructuring plan eliminated more than $3 billion of debt: now instead of having to find $345 million in interest payments every year, it now faces a $50 million bill, which is well manageable given Momentive’s level of annual turnover, in the region of $2.6 billion.

For William Duty, Director of Momentive’s Supply Chain Center of Excellence, the last year has been like a release after a period of confinement. Billy Duty has more than 20 years of supply chain experience under his belt, during which time he has passed through seven mergers or acquisitions, so he is no stranger to corporate change. He has been working in silicones since 1994, not long after the $300 million acquisition of Union Carbide’s silicone business by DLJ Merchant Banking Partners L.P. After going through the GE acquisition of Crompton’s silicone division, he stayed with the business as Director of SIOP (sales, inventory and operations planning) when it was spun off by GE to Leon Black’s Apollo Global Management LLC to form Momentive in 2007. In 2010, there was further adaptation as Momentive was combined with another Apollo-owned company, the specialty chemicals company Hexion, and then last year’s post Chapter 11 decoupling

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Momentive’s global footprint

from Hexion and corporate restructuring.

Following the restructuring, Apollo, though it remains at about 40 percent the largest single shareholder, no longer has the majority share in Momentive, and Hexion is again a separate company with its own board and CEO. Momentive has what Duty refers to as an older style footprint; the three biggest of its 23 global manufacturing plants are respectively located in Waterford in upstate New York, Germany and Japan. None of these has any advantages of low cost labor or cheap utilities.

Newer plants have been built strategically in China, Thailand and India, but for the time being the lion’s share of production comes out of relatively high cost manufacturing locations.

One of the challenges for supply chain

William Duty, Director of Momentive’s Supply Chain Center of Excellence

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MOMENTIVE CHEMICALS

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Maximizing Prime Production Plants operate at full capacity to increase profitability.

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Optimizing Product Wheels Improve specific sequences for making products.

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Reducing Off-Spec Product Minimize output during transitions that is lower grade than normal.

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management is the very large number of different customers the company serves and the wide variety of products it sells into a range of industries. “No single customer provides us with more than three percent of our revenue,” says Duty. “We touch a little bit of everything!” The largest customer industry is consumer goods, where Momentive’s silicone elastomers products provide heat resistance, flame retardancy and moisture/dirt protection, for everything from bakeware and kitchen utensils, to keypads and infant care products.

Tire manufacturers use a lot of Momentive’s technology and patented NXT* silanes, which can help manufacturers improve tire rolling resistance and traction while improving wear by enhancing the coupling of silica to tire tread. Currently,

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“No single customer provides us with more than three percent of our revenue” – William Duty

ASPENTECH

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M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Sisterville site

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new production expansion is being planned to double supply capability of these products.

The quartz side of the business produces high purity fused quartz and ceramic materials that go into semiconductors, lighting and consumer electronics. Now free from the burden of debt, the company has money to invest, and upgrading the plants and equipment as well as growth will be a priority. The efficiencies this will deliver will go straight to the bottom line and rapidly turn Momentive into a larger more profitable organization, Duty predicts.

However, for now he is very much tied up with transforming the supply chain function throughout the company. Before the combination, Hexion had invested heavily in supply chain tools and expertise. He was able to bring these across, including a team of people thoroughly versed in the tools used within the 15-strong Momentive Supply Chain Center of Excellence that he now heads.These are the people who carry out advanced scheduling, planning, and linear programming work, alongside core process experts responsible for supply and demand planning.

This team works globally and is hired globally.

Its most recent addition was hired in Japan where an advanced scheduling implementation is underway, and someone who could speak the language was needed on the ground. Every region has its own challenges, he says. “One good thing that we started a couple of years

‘Now free from the burden of debt, the company has money to invest, and upgrading the plants and equipment as well as growth will be a priority.’

Growth is now a priority to Momentive Chemicals

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M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Momentive RTV162 Silicone One Part Epoxy Paste

ago was overhauling our demand planning.

Then we went into our inventory analysis, and then we moved on to scheduling and advanced strategies. Because our business is very global and very complex, we are getting a lot of value out of having the right toolset, which is something we did not have in the past.”

Strategic planning used to be a headache.

The ideal was to keep a rolling five-year program looking at each of the global assets. “Until last year that exercise was done via spreadsheets and it would take months of work just to prepare them, and very little analysis was possible. Last year we used Arkieva’s planning model which

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enabled us to generate literally hundreds of different scenarios, and at the touch of the button see what the effect of each of those would be on our asset base.” At last, it was possible to drill down into the results, and test the outcomes of different actions in real time. This was no plug and play exercise though, he cautions: “It took us many months to get the model right but now there’s really no limit to what we can do with it.”

“Now the supply chain team is taking on another challenge: the plant by plant implementation of the Global Supply Chain Scheduler (GSCS), based on AspenTech’s Aspen Plant Scheduler™ family of products.”

“We are over half way through the program now. By using the AspenTech tool and being able to build the logic into the tool from countless interviews with the scheduler, we have been able to generate a lot of value at our plants: minimizing changeovers, reducing inventory because of a better sequence plan, and gaining better visibility.” He hopes to finish at the end of this year or early 2016.

Implementation is a painstaking process.

The schedulers start by assessing the flow of materials at the plant, the machinery, and the constraints within the entire facility. “We have to do a lot of interviews! When we have all that information, we come away from the site and the technical guys set about preparing the scheduling model. Once we have a decent solution we will go back on site, review the

RTV product range

Momentive RTV103 2.8oz One Part Acetoxy Cure RTV Silicone Adhesive

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“We have been able to generate a lot of value at our plants: minimizing changeovers, reducing inventory because of a better sequence plan, and gaining better visibility” – William Duty, Director of Momentive’s Supply Chain Center of Excellence

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June 2015

solution with the key people there and refine it some more.” Following some more fine tuning the team returns to the site to do the detailed training, start to use the tool, leaving some team members on site to support, measure, and make sure the process is working as it should.

At first, he says, one site was tackled at a time, but now they are doing two at a time. “In the last month we went live in Germany and in Florida and started the process in Brazil and Japan too.

We are a lot faster now. At the beginning the

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team was new and they had to learn the process, but we devised the plan in such a way that we could learn as we went.” There is a good reason why twelve plants were done ahead of Japan, he adds: “I wanted to make sure the team had seen all the different types of assets they would encounter in the large Japan facility before they got there - I didn’t want that to be their first time!”

New products are constantly coming out of Momentive’s R&D laboratories, and NPD will benefit as much as the facilities from the cash that can now be devoted to this vital function. One major trend in the market is the use of silicones in medical applications. Silicone is used in catheters and tubing, transdermal drug delivery, skin adhesives, and other equipment, and performs better than many other elastomers. According to a recent report, the rapid growth of the end-user markets is one of the factors contributing to the growth of the global silicones market. And the construction and automotive sectors are growing rapidly in emerging economies such as China and India, where silicones are used for various applications such as sealants and adhesives, product areas where Momentive excels.

As more applications emerge, supply chain complexity increases, and planning and scheduling functions become more important.

The rebirth of Momentive has started well, but future expansion will depend heavily on its success in keeping cost out of the supply chain.

Company Information INDUSTRY

Performance Materials HEADQUARTERS

Waterford, USA FOUNDED

2006 EMPLOYEES

5,000 REVENUE

$2.6 billion PRODUCTS/ SERVICES

Silicones, Quartz, and Ceramics

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The UK’s National Treasure Written by: John O’Hanlon Produced by: James Pepper

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T H E R O YA L M I N T

The Royal Mint is an ancient institution evolving into a modern commercial operation, moving into retail operations and introducing up to the minute supply chain solutions

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he Royal Mint as companies go, is quite a well-established institution. 1,129 years to be precise, since it was established under Alfred the Great. Until very recently it operated as an office of the Crown, having grown with the expansion of the British Empire, making coins for a good proportion of the world and more recently contracted by many independent countries.

In 2010, however, it was decided that the Mint should be structured in a way that would allow it to make the most of the many opportunities it has to add value to its core business of striking coin. It ceased to be an executive agency and its assets were vested in a limited company Royal Mint Ltd owned by The Royal Mint Trading Fund, itself wholly owned by HM Treasury.

It was a time of radical change for the Llantrisantbased manufacturing operation. After all there can have been few business transformation challenges to compare with that of morphing a thousand

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Royal Mint Engraver Jody Clark touches his sketch of the Queen’s head

year old national institution into a modern manufacturing operation (though to be fair that process had been started back in 1968 when the Mint moved to a purpose built facility in Wales better able to cope with the demands of decimalisation). A new executive team was formed. The current CEO Adam Lawrence was appointed at the beginning of 2009, however some six months before vesting David Bowles was brought in to facilitate the transition as Head of Project Management. Today he is

aRMour blanks

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Director of Supply Chain, and the job has, he explains, demanded all the expertise in operational excellence and process planning he has gained in a career spent mainly in the steel industry.

The work of the Mint is, of its very nature, unpredictable and variable. There are three sides to the business; circulating coins (the production of all the UK’s currency requirements under an exclusive contract with the Treasury as well as contracts with overseas governments); commemorative coins; and bullion. Commemorative issues for special events are a growing line. Events of national importance are usually marked by the issue of a special coin like the £100,000 one kilogramme gold coin designed by Sir Anthony Caro for the 2012 Olympics. Though legal tender, none of the 60 people who bought the limited edition are likely

SUPPLIER PROFILE

Inside the Mint

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“A huge change process went across the whole organisation. It started from how we take orders in, and went right through how we plan and schedule” – David Bowles, Supply Chain Director

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to go into a shop with it as its value lies mainly in its rarity. The latest commemorative coin on offer is a limited edition Alderney £5 Platinum Proof coin to commemorate the 70th anniversary of VE day.

From a supply chain point of view it is clearly easier to plan for events like these than, say a royal birth. However there is an element of predictability in commemorative coins that is lacking in circulating coins, which are tackled on an order by order basis. Nevertheless all sides of the business are growing strongly. In 2013/14 more than two billion circulating coins were delivered to UK distributing banks and the Post Office. in 2009 the Treasury decided to convert from solid cupro nickel in the smaller denomination coins to plated steel using the

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Mint’s proprietary aRMour technology. This concept has been sold to many overseas countries, with the Mint notably securing a three year contract with the National Bank of Poland to supply three aRMour brass plated coins. These coins are much more economical, and just as durable as the ones they replace.

In an environment of dynamic sales activity, David Bowles has had to lead a complete transformation in the supply chain function.

“When I came to this business there was a lot of unpredictability in the planning, the production and the procurement too. We have put in some really robust planning systems now that mean we can have a really predictable supply chain with our suppliers.” Already, he said, the visibility in the supply chain has improved to the extent that he can discover in real time what coin is being created and on which machine.

To reach that level of predictability entailed changing the culture of the organisation as well as its processes. The incoming team brought with them ideas from the world of industry, and above all a common approach as to what it takes for a manufacturing business to be effective. “Just as an example, in the circulating coin business there was about 2,000 tonnes of work in process at any one time. Now we operate with about 300 tonnes of wip.” Taking working capital out of the process is not a new thing, he appreciates, but at The Royal Mint the established way of operation simply did not take working capital into account.

Key Personnel

David Bowles Supply Chain Director Joined the Royal Mint in 2009 after spending 10 years in the Steel industry, mainly in Supply Chain related roles. Holds an MBA in Supply Chain Management from Cardiff Business School.

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T H E R O YA L M I N T

S U P P LY C H A I N

Changing that may seem obvious but it was certainly not easy. “A huge change process went across the whole organisation. It started from how we take orders in, and went right through how we plan and schedule, through to how the manufacturing processes are organised and managed.” All of this has been changed over the last five years, but continuous improvement is a never ending process, he emphasises. A huge step forward may have been taken but there remains a lot more to do.

Bowles’s remit combines operational excellence on the shop floor with business excellence in the back office. “Our big driver is to get everyone involved in continuous improvement, and so far we have been really successful in getting everyone in the business to ask the question ‘how can we do better?’ Managing risk and unpredictability is one challenge we have met head on.” A great deal of effort has been put into planning. He has put a ‘rough cut’ capacity plan into effect, which looks at a multiyear rolling forecast. “We take all the countries we deal with and give them a ranking as to how likely they are to place an order and on what percentage basis. We can then use analytics to look at different scenarios that could arise.

Then we have sessions with the sales team to see where the gaps are, whether we are likely to be overloaded in certain months, or which customers we may have to move around.”

But there is a red line on meeting orders. The Royal Mint will never commit to a contract unless

xxxxxxxx

Proof in the detail

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Jody Clark’s portrait of The Queen on tooling cutter

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it is certain it can fulfil it. That means securing the materials that will be needed, an additional challenge, as risk aversion is part of The Royal Mint’s ethos. This means that even if there is an opportunity to buy forward at favourable rates it will always relate procurement to orders in hand. The principle is sound: we wouldn’t expect a company that is publicly owned to engage in speculative buying in today’s fluctuating metal markets, risking spectacular losses. However he can see the principle being tempered by sound procurement practices to some extent as time goes on. Basically precious metals would still be bought at spot prices to lock in cost and pricing of individual orders, but base metals like steel, nickel and copper could be bought further ahead than they are now.

As one would expect, process optimisation is a priority. Planning must be built around constraints in the process, and one that has been identified is in the presses. These are the machines we think of when we talk of ‘striking’ a coin or a medal, stamping the head and the tail. “At present we are able to plate more blanks than the presses can stamp, so we are involved in an exercise to see how we can increase capacity by operating the machines differently and improving efficiency without having to buy more presses.” A good illustration of how the ancient craft of coining throws up exactly the same problems as might face a manufacturer of car parts!

So five years down the line, how does he evaluate the supply chain processes at The Royal

“At present we are able to plate more blanks than the presses can stamp so we are involved in an exercise to see how we can increase capacity by operating the machines differently and improving efficiency” – David Bowles, Supply Chain Director

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Precision measuring and monitoring ensure consistency in coinage

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Mint? “We think we have the business down to a stable enough level, and the processes robust enough, to actually implement a full ERP system now,” he said. The system that has been selected for this venerable business is Microsoft Dynamics AX, and though the process is still at the design stage at the time of going to press, it is on the edge of full implementation and will go live by the end of 2015. AX has the qualities that Bowles needs to connect the business from manufacturing to procurement to sales. “We couldn’t have done this a couple of years ago.

The processes were not robust enough. I predict a few challenges but nothing we can’t handle

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and I can see fantastic opportunities down the line to do much more work with our suppliers. It will facilitate integration with their own systems, and a greater level of catalogue buying and even supplier controlled inventory, refinements not supported by the legacy MRP system.”

Having replaced the UK’s 5 and 10 pence pieces, the Mint is now preparing for its next big job, upgrading the flagship coin of the United Kingdom: 2017 sees the launch of a new £1 coin.

For the Mint this entails taking around 1.6 billion old coins out of circulation and replacing them with new ones in very short order. Designed by a talented 15 year old (and to those who can remember remarkably like an old threepeny bit) this is a high tech coin that incorporates the ultimate in security, a new high security feature perfected by The Royal Mint.

With electronic readability and specialised plating even apparently simple coins are turning into complex manufacturing. “It is the most secure coin ever produced, with the latent security features that are going into it. We are excited about it but it is a big supply chain challenge,” said Bowles. It is not the only one though. Next year a visitor centre, with catering facilities, exhibitions, interactive displays and even tours round the Mint will be opened at Llantrisant. Given the mystique surrounding The Royal Mint it will doubtless attract millions. “It will be a big success and another challenge for my team. We have not been involved in retail but now we will have a shop to stock!”

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Llantrisant, Wales FOUNDED

886 AD EMPLOYEES

1000 REVENUE

£260 million PRODUCTS/ SERVICES

Coin and medal manufacturing

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DRIVING PASSION: warehousing wisdom Written by: John O’Hanlon Produced by: Heykel Ouni

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Aldrees is organized in two major divisions; the Petroleum Services Division and the Transport Services Division. The former owns and operates 478 petrol stations right across the kingdom, and is the retail arm of the business.

T

he Transport Services Division is one of the major customers as well as one of the principal service providers to the retail side, but operates as an independent company. It is one of the largest logistics provider in the country – and currently very much in expansion mode.

Mohamed Yousri Hanno is Assistant General Manager of Aldrees Transport Services. The company is involved with local freight deliveries, as well as deliveries to GCC & Middle East countries, he explains. With 1,340 tractor units and more than 2,700 road trailers in a huge array of different specifications, its primary concern is the movement of bulk cargoes between the kingdom’s industrial and petrochemical complexes, and its ports on the Red Sea to the Mercedes tractor units

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west and the Arabian Gulf to the east. “ To give a flavour of the size of the operation it is worth looking at some of the major contracts Aldrees services. The largest customers include Saudi Arabia’s leading petrochemical company SABIC, for which Aldrees transports liquid chemicals in stainless steel tanks and solid petrochemicals like polypropylene, polyethylene and PVC in bulk and bags, and the minerals group Maaden whose product includes sulphuric acid at 98 percent concentration as well as phosphoric acid and caustic soda – hazardous chemicals that require stainless steel and rubber coated tanks. Aldrees also undertakes transportation of Maaden’s oil supplies and moves minerals like copper, gold and zinc in containers to Jeddah port for export.

A new product line for Aldrees recently has been the transportation in tipper units of the refinery SATORP’s by-product of pet coke to Jubail Industrial Port, part of an ongoing expansion of the relationship between these two companies. For the National Industrialization Company Tasnee, a demanding new departure is transporting butyl acrylate in special insulated stainless steel tanks, again to Jubail Port.

Cement is an important export commodity for Saudi Arabia, and Aldrees is involved in moving Northern Cement Company’s product in bulk to their customers all over the kingdom as well as keeping the cement plant supplied with petrol, diesel and HFO, which calls for specialised

CEO Engr. Abdulilah Saad Aldrees

Assistant General Manager Eng. Mohamed Yousri Hanno

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www.petromin.com

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insulated and heated tanks.

Other tasks include moving ilmenite and coke in bulk from Jazan Port to the National Titanium Dioxide Company’s plant 100 kilometres from the coast and bulk sugar, liquid sugar and molasses to customers of United Sugar Company (Savola) in Jeddah & Riyadh. For the Grain Silo & Flour Mill Organization imported wheat is moved from Dammam Port to the silos in Dammam, Madinah & Tabuk. And let’s not forget the product that built modern Saudi Arabia - for Petromin and Shell Aldrees is trucking base oil from Jeddah, Yanbu & Dubai to blending plants in Jeddah & Riyadh, and finished product in bulk and drums to these customers’ clients.

As we mentioned earlier, a really important customer is Aldrees Petroleum Services

SUPPLIER PROFILE

Finance Manager, Mr. Roberto Rasco

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Dispatch yard

“At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.”

– Mohamed Yousri Hanno, Assistant General Manager

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Division, for which the Transport Division delivers petrol and diesel to every one of the 478 filling stations in 200 dedicated tankers in Aldrees livery. “We make almost 12,000 trips monthly for the fuel stations! They are one of our biggest customers, and of course we are one of theirs because we buy our diesel from them.

We win both ways. We buy the fuel from them and they buy the transport service from us.

The entire fleet consists mainly of Mercedes units, though 24 percent are supplied by Volvo and six percent by MAN. These operate out of six strategically situated depots Riyadh (the head

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office with a 100,000 square metre warehouse); Jeddah, Dammam, Yanbu, Jazan, Haditha on the Jordan border; and Jubail. “Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks. Naturally they all have their own dispatch facility, plus accommodation for the operations, administration and maintenance staff and drivers.

And they are all stocked with the spares needed to keep the trucks on the road.�

While the trucks are regularly updated with the latest fuel efficient models, diesel in Saudi Arabia is cheaper than anywhere in the world

Volvo tractor unit

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except Venezuela. Unlike freight companies in Europe for example Aldrees does not see fuel as a major cost. Tyres are another matter. A little over two years ago, says Mohamed Hanno, the company contracted with Michelin to run its Tyre Management System. “We now have control of every tyre on every truck at any time. At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.” This is an effective way of ensuring safety while keeping tyre costs down – since the implementation of the system in 2012, he says, average running mileage has increased by around ten percent, and overall tyre costs reduced by a similar factor.

To keep its network working seamlessly, and to manage the complex truck movements, Aldrees developed its own enterprise system together with a sophisticated Transport Management System (TMS), says Hanno. “Right across company all our operations are linked together and all the data is transmitted on line – the orders from the customer either coming to head office or to the branches are constantly tracked and because we have GPS satellite tracking throughout our fleet, from the Riyadh control room we can monitor the trucks wherever they are operating, even outside the kingdom.”

Thus, with key costs under control and truck maintenance controlled by Aldrees’ own software a couple of key best practice boxes have been

“Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks.”

– Mohamed Yousri Hanno

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ticked. A third, vital to satisfying the OEMs and maintaining warranties, is the question of which oil to use in Saudi Arabia’s harsh conditions. After a long period of trialling approval was obtained from all three for engine oils developed by Petromin Corporation. This is consistent with Aldrees’ benchmarking policy, Hanno emphasises, which also dictates that all spare parts are sourced from the OEMs’ approved agents, in a market flooded by cheap replicated parts.

Just a year ago, there was a major change in the company’s centre of gravity when Aldrees opened its state of the art new depot in the fast expanding industrial city of Jubail. Because of its key location near to major clients, this is now

Aldrees can track its fleet anywhere in the world

Insulated mild steel tanker with heating burner for transporting Heavy Fuel Oil (HFO)

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Alumium Tipping Bulker for transporting bulk polymers

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the most important depot for the division, but there are more reasons for that investment. “We have two terminals there, each 100,000 square metres in area,” he says. “One is for the Transport Division operations and the other for the joint venture we have set up with our Swiss partner Bertschi group. The company is called Aldrees Bertschi Logistics Services Company.”

Bertschi AG is a specialist in logistics and the transport of chemicals by ISO tanks on road, sea and trains in Europe, China and Singapore.

It should perhaps be explained that an ISO tank is a container built to the ISO (International Organisation for Standardisation) standard and designed to carry liquids in bulk. The frame which the tank sits in measures about 6 metres long,

S U P P LY C H A I N

2.4 metres wide and between 2.4-2.5 metres high. The tanks vary in size and type and can carry between 21,000 and 40,000 litres of liquid.

The new company will be engaged in providing chemical logistics, transport management, warehousing management, cleaning of chemical tanks and related services: it will be managed by a joined team from Aldrees and Bertschi.

Another partnership will see intensive development this year of a completely new line of business for Aldrees – outsourced warehouse management. One major contract already secured

by Aldrees together with South African logistics specialist Barloworld is to manage the warehouse operations of existing customer SATORP. “We hired the people and we’ve done thorough inhouse training in conjunction with Barloworld. We have a trained multinational workforce.”

This is just the beginning says Mohamed Hanno. “We have also started the quotations and tendering process for several offsite logistics challenges, such as hosting bagging lines and drumming lines in our facilities because many of the new companies moving into Jubail, like Sadara Chemical Company for example, which is constructing the world’s largest chemical complex ever built in a single phase in Jubail Industrial City, and Sipchem simply don’t have the warehousing space and are keen to outsource non-core logistics.” It is a great opportunity for Aldrees as Jubail and other industrial complexes in the kingdom continue to expand, he emphasises.

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Riyadh, Kingdom of Saudi Arabia FOUNDED

1962 EMPLOYEES

5284 REVENUE

2,144,322,070 Saudi Riyal PRODUCTS/ SERVICES

Retail Petrol sales & Transport Services

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INTEGRATING SUCCESS 3W networks strengthens its dominant market share with holistic strategy Written by: Nye Longman Produced by: Craig Daniels 117

3W NETWORKS

3W provides an extensive variety of solutions to clients from a range of sectors

3W 3W’s Telecom Cabinets

Networks built its solid reputation from its base in Dubai, UAE as a trusted telecommunications, safety and security systems integrator and turnkey provider. Today it has operations throughout the Middle East, as well as Australia, Korea and Egypt. The company, which has been entrusted with securing, integrating and equipping billions of dollars’ worth of facilities, boasted a backlog of $70 million at the end of 2014. It has achieved this through fostering strong, long term partnerships across its territories, through quality project and product delivery, as well as a unique customer-focused ethos.

Operations 3W provides an expansive variety of solutions

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TECHNOLOGY

Walid Gamali Founder and CEO

to clients from a range of sectors; its system integration capabilities extend from telecoms to transport, and from power and water to oil and gas. It has the capacity to offer its clients anything from dense wavelength division multiplexing, IP/MPLS and radio communications, as well as security and safety solutions for difficult environments. It is currently investing $500,000 on expanding its facilities to enable future growth in capacity.

The company’s remit extends far beyond technology solutions; it has the expertise to deliver industry specific services to its clients which range from factory and site acceptance testing, to installation, project management, and engineering. CEO Walid Gamali is proud of 3W’s critical position in the

Walid Gamali founded 3W in 2000 with the vision of bringing customized telecommunication solutions to the oil and gas market.

He is responsible for the overall management of the company’s worldwide operations across all markets and countries. He plays a key role in defining and executing strategic initiatives focused on growth and differentiation of the organisation.

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3W NETWORKS

Loudspeakers

Audible Alarms

Visual Alarms

Eaton’s range of MEDC and FHF hazardous, heavy duty, industrial and commercial speakers are designed to meet the requirements for public address, voice alarm (evacuation) and background music.

The MEDC and FHF range of audible alarms from Eaton are suitable for a wide array of applications, feature a variety of tone settings, and are designed to raise the alarm in dangerous situations. Traditional bells are also available.

Eaton offer the MEDC and FHF range of visual alarms, a range of beacons and combination units including flashing, steady-state indicators and rotating units. These may be used to warn of potential hazards or indicate the status of plant conditions, fire and gas alarms, evacuation alerts and many more.

Status Lights & Audible

and Visual Combination Units

Call Points

Camera Systems & Stations

Eaton offer this MEDC range is for use in situations where both audible and visual awareness is required together to alert operators of a potential hazard. Customised solutions from Eaton can be designed and manufactured using MEDC sounders and beacons to suit the specific needs of the customer.

The MEDC and FHF manual alarm call points from Eaton are designed for the purpose of raising an alarm manually once verification of a fire or emergency condition exists, by operating the push button or break glass the alarm signal can be raised.

Eaton’s range of Hernis and Oxalis camera stations leads the way in developing advanced camera-based surveillance systems for marine and oil & gas installations worldwide. Our solutions contribute to increased efficiency and provide safety for people and equipment in hazardous areas and under extreme conditions.

Telephones

Control and Distribution

PA/GA Systems

Eaton supply a full range of Gitiesse and FHF sound powered telephones suitable for any kind of application: IP and analogue, weatherproof proof and explosion protected. Supplementary audio and optical devices are also available as an option.

Eaton offer the MEDC range of standard and bespoke control and distribution units for harsh and hazardous environments.

As a leading manufacturer of explosion proof equipment,Eaton can provide hazardous and safe area control units in a range of dimensions to suit your required specification.

Designed to enhance modern communication philosophies, Eaton’s Sonix PA/GA system includes a highly sophisticated yet simplified architecture that removes the need for lengthy engineering cycles, bespoke and costly software, custom field engineering or expensive onsite support. We are able to offer fully compliant communications solutions to meet the most demanding applications for onshore, offshore and industrial installations.

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T + 44 (0) 1623 444400 HACMarketing@Eaton.com F + 44 (0) 1623 444531 www.crouse-hinds.com/hac

3W NETWORKS

TECHNOLOGY

Middle East, he said: “There are few companies in the world and very few in the Middle East that can do integration for a pipeline or an offshore platform, and 3W Networks is one of them.”

3W was commissioned to provide a catalogue of services to the Abu Dhabi Crude Oil Pipeline.

The pipeline is designed to transport 1.5 million barrels of crude oil per day (70 percent of Dubai’s oil exports) across 390 kilometres; needless to say that security provisions not only need to be effective, but also constructed to the highest health and safety standards in order to prevent any potential damage to the pipeline and its employees.

Gamali highlighted that his company often battled against the clock to deliver its vitally needed solutions, he said: “After a project like this has been constructed, it can’t go online

SUPPLIER PROFILE

3W was commissioned to provide a catalogue of services to the Abu Dhabi Crude Oil Pipeline.

EATON

Part of Eaton’s Crouse-Hinds series, Hazardous Area Communications is a comprehensive product offering for potentially explosive atmospheres, bringing together a range of specialist systems and solutions for the fire & gas, telecoms and CCTV markets. Our solution names of MEDC, FHF, Hernis, Gitiesse and Oxalis offer a specialised team of highly qualified staff to ensure all aspects of engineering, design and configuration within your project are fulfilled - from initial stages of concept through to commissioning.

With experience dating back over 100 years, we work together with one idea in mind; to make working environments a safer, more reliable place to work.

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3W NETWORKS unless our part of the work has been completed; we always have to step up to the challenge of meeting these demands on time.”

3W Networks provided key telecommunications installations for the pipeline project which included design and engineering, procurement, systems integration and factory acceptance testing (FAT), in addition to installation, commissioning, training and warranties. Furthermore, the company was also responsible for providing crucial security solutions for the pipeline which, costing in excess of $2.2 billion, was no mean feat. Its security remit for the project included SDH transmission, CCTV, UHF radio, public address, access control, as well as structured cabling all energized by solar power.

Gamali also added that, combined with its unique customer focus, 3W had a two pronged strategy for staying ahead: “We do a lot of detailed front end engineering and design as soon as the order is completed: time is always of the essence. We even do a significant amount of research during the bidding stage.”

3W Networks offices

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The competitive edge Having its headquarters in the Dubai Silicon Oasis allows the company to stay close to the pulse of the country’s technology and communications industry, and enables it to maintain complete control and ownership of its operations, in exemption from customary UAE laws. The zone is also exempt from both corporate tax and customs duty, which provides the company with much additional capital.

TECHNOLOGY

Gamali asserted that much of 3W Networks’ success was down to the fact that it retains a close working relationship with its customers and partners and also how this enabled the company to act as a hub, simplifying numerous webs of associations.

Sabu Matthew, Sales and Marketing director at 3W, added: “Our technology partnerships are mutually beneficial because the manufacturers are typically from the US and Europe and therefore have little or no interaction with the end user, here we act as both a representative to the end user, and also provide feedback to the manufacturer, so it’s a two way street. ”

‘The company, which has been entrusted with securing, integrating and equipping billions of dollars’ worth of facilities, boasted a backlog of $70 million at the end of 2014.’

Factory Acceptance Testing (FAT) at a 3W facility

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3W Networks Product Warehouse

“Our philosophy is to continually enhance our activities, reducing any potentially negative environmental impacts.”

-Walid Gamali Founder and CEO

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Talent Management 3W recognises that people are at the heart of any modern, high performance network and this is why the company strives to attract, develop, and incentivise its talent. Working in such a technologyintensive industry, an employee must be prepared to embrace change and adapt to new ideas and technology. The management team therefore demands an extra effort from its employees; Gamali said 3W workers need to be: “Capable of working on equipment beyond their initial experience and be able to use a multi-skilled approach.”

Employees putting in the extra mile do not go unnoticed; the company awards performancerated bonuses to its best and brightest.

Furthermore, in addition to providing employee gratuities and healthcare, 3W makes sure to regularly recognise its top talent through a companywide Employee of the Month Award.

TECHNOLOGY

Social Mission 3W takes its social responsibility just as seriously as the profitable sections of the business. Gamali said: “We set up the 3W foundation so all of our efforts could be consolidated into one institution.

We have partnered with a group called ‘Mawaheb from Beautiful people’ which encourages disabled artists.” Perhaps the most touching sentiment of this association was the fact that this artwork was incorporated into all of the company’s marketing material. This caught the attention of the UAE government, who awarded them with the Dubai Chamber of Commerce CSR Award in 2011.

Building on its award-winning practices, 3W is leading the way in operating an environmentally friendly office environment, taking steps to ensure that the correct recycling procedures are strictly adhered to. He said: “Our philosophy is to continually enhance our activities, reducing any potentially negative environmental impacts.”

Through a truly holistic strategy grounded in its dual dedication to both its partners and customers, 3W Networks has shown that pleasing everybody is not only within reach but can be done while remaining competitive. Gamali modestly noted that the lucrative contracts the company has with the region’s oil and gas producers enabled the company to pass through the financial downturn relatively unscathed, which goes to show that 3W’s unique business model will enable the company to deliver quality solutions in the long term.

Company Information INDUSTRY

Technology HEADQUARTERS

UAE FOUNDED

2000 EMPLOYEES

150 REVENUE

$30 million (2014) PRODUCTS/ SERVICES

Systems Integrator

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A Global Perspective ensures success for SPECIALIST SERVICES Written by: Nye Longman Produced by: Heykel Ouni

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SPECIALIST SERVICES

MWD units for Oceaneering

The supplier to the oil and gas industry has cemented its place in the Middle East through a careful, multifaceted strategy

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S

pecialist Services was founded in 1982 to supply the Middle Eastern oil and gas industries with modular buildings and equipment packaging solutions. Since then it has grown to a truly international level, with operations in Dubai, Abu Dhabi, Aberdeen, Singapore and Perth, and has a greatly increased portfolio of specialist products and services. CEO Ian Rogers has been with the firm for over 5 years and has extensive experience working in its key operational territories.

Alongside the offshore building solutions that helped Specialist Services make its name, the company also provides drilling, testing and production products, service and maintenance, spare parts, and modular buildings for hire. Understandably, the company

E X P L O R AT I O N

provides services to organisations in oil-rich countries, particularly Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates (UAE).

The strategic acquisition of Aberdeenbased Labtech Services Limited three years ago endowed Specialist Services with a subsidiary that not only had long-standing experience supplying modular buildings to the oil and gas sector, but one that has a Western hub capable of servicing the UK, much of Europe, and Scandinavia.

From its acquisition of Labtech, to starting from scratch in Singapore, Specialist Services has built a solid network that now covers Europe, the Middle and Far East. Rogers summed up his company’s deceptively simple strategy: “If we are going to meet and exceed the expectations of our

New 33ft accommodation module for hire

Early production facility for FODE

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SPECIALIST SERVICES clients we need to be present in those markets, and we have a geographic strategy such that we can deliver on our client’s requirements.”

Ian Rogers, CEO

Safety in numbers Ensuring the wellbeing of its staff is not simply an HR issue for Specialist Services; it can actually be a matter of life or death due to the nature of the oil and gas industry. In addition to its compliance with the ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 initiatives, the company has its own unique methods for ensuring employee safety. Rogers said: “I regularly visit our workers’ accommodation to check food quality, cleanliness, whether people have hot water, and generally that people are being well looked after.

We know from experience that if an employee is well fed and well rested they are much less likely to have an accident.”

Rogers said that very soon the company will have gone 500,000 man hours without the occurrence of a lost-time incident on an EPC project for Petrofac/Zadco in Abu Dhabi, which goes to show that management’s personal involvement in safety measures is

“From its acquisition of Labtech, to starting from scratch in Singapore, Specialist Services has built a solid network that now covers Europe, the Middle and Far East” – Ian Rogers, CEO 130

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E X P L O R AT I O N

Power skids for SIEMENS

certainly paying off. Furthermore, the Dubai Municipality for Health and Safety recognised the company’s approach to safety in 2014, awarding it with role model status specifically for its management of occupational health and safety. Rogers received an award on behalf of the company for their participation in a Health, Safety and Environment Week hosted by Yokogawa Middle East and Africa.

Aside from making sure its workers are safe and well catered for, Specialist Services makes sure that employees who champion safety are trumpeted throughout the business. Furthermore it provides long term loyalty packages, in addition to awarding competency-based bonus payments to its employees to ensure a motivated team.

500k The number of man hours without lost-time incident on the Petrofac/ Zadco project

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Specialists in Combined Pressurisation, Fire & Gas Control Systems (CPFG) Supply, Manufacture & Installation of ATEX and IECEx Control Systems

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

PDC Systems Limited

E X P L O R AT I O N

Crude oil custody transfer metering system for Emerson

Investing in the future Specialist Services has made major changes to its operational capabilities, leveraging new developments in software to improve efficiency across multiple levels of the business. Recently the company rolled out Microsoft Dynamics AX across the whole company in order to provide a single, centralised port of call for resource planning, Rogers said: “We are finding that’s enabled us to scale up the organisation and get away from multiple excel spreadsheets that other businesses use.”

The company is also in the process of deploying a competency-based HR management

“We’ve got a significant number of engineers so we can design and engineer solutions for our clients; we aren’t just a fabricator” – Ian Rogers, CEO

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Specialist Services’ service and maintenance Team

MWD units for Oceaneering

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software system, Rogers commented: “We use competencies for performance enhancement, learning development, to drive recruitment and selection, and for strategic HR planning.

This will help us develop our employees, as well as manage employee resources.”

Specialist Services has a willingness to use new technology which does not stop at a single operation within the business – it is a company willing to roll out the best solutions to cover as much as the company as possible.

This attitude has also influenced the company’s approach to its products, specifically with the creation of its new G4 modular buildings that are currently the only modules that comply with the four major certifications, in accordance with oil industry standards, European law, North

E X P L O R AT I O N

American regulations, and global directives.

This innovation allows a Specialist Services client to manage its offshore pressurised building fleet at a truly international level, without having to make any modifications or navigate through layers of red tape. Rogers was keen to highlight the successes of his team, he said: “We’ve got a significant number of engineers so we can design and engineer solutions for our clients, so we aren’t just a fabricator.”

Spending money is not a taboo subject for Ian Rogers; investing in the operational capacity of his company is a source of much pride. He said: “We’ve invested very heavily in yard facilities, particularly in the Middle East; we now have six yards in Dubai and Abu Dhabi combined.

We are building greater numbers of office, workshop and accommodation units and are investing in geographic expansion to support our clients. The Modular Hire fleet will have around $5 million invested in this calendar year.”

Specialist Services survived the 2008-9 financial crisis and came out fighting, which is how Ian Rogers predicts the company will weather the current oil price slump, he even admitted, “Our EPC yards, they are so busy it’s hard to find how we can do more work.” It is therefore becoming clear that dedication to employee wellbeing and having the courage to invest across the board is proving to be an equation for a sustained, successful performance for Specialist Services.

Company Information INDUSTRY

Oil and Gas HEADQUARTERS

Dubai FOUNDED

1982 EMPLOYEES

1250 REVENUE

Undisclosed PRODUCTS/ SERVICES

Exploration Services, Modular Buildings, International Carrying, EPC containers, Health and Safety

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KUNOOZ OMAN HOLDINGS JOURNEY TO AN IPO Written by: Nye Longman Produced by: Craig Daniels

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KUNOOZ OMAN HOLDINGS SAOC

The companies of the Al Rawas family were consolidated into Kunooz Oman Holdings in 2014; the group is hoping to extend its growth with a listing on the Muscat Securities Exchange

T

he consolidated companies of the Al Rawas family, with a total revenue of $ 43 million in 2014, are strategically positioned within the Sultanate of Oman, at the crossroads of some of the fastest growing economies in Asia, Africa and Europe.

Oman has an international reputation for stability in its political, economic and social systems and has created strong infrastructure, healthcare, communication and trade networks, as well as an advanced transportation system off the back of its flourishing oil-based economy.

Journey to an IPO The Government of Oman has committed to diversifying its economy in order to reduce its reliance on oil exports; the mining and downstream capabilities of Kunooz, therefore, are set to play central role in this strategy. It is with this

Crusher at Mihwar Al Wifaq in Muscat

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MINING

Key Personnel Quarrying operations at Al Rawas Marble in Ibri, Northern Oman

bright future in mind that Kunooz Oman is being positioned for an Initial Public Offering (IPO) on the Muscat Stock Exchange.

CFO Krishna Karikurchi said: “Kunooz Oman has spent the last two years preparing itself for the listing, restructuring and professionalising itself into a consolidated entity.”

The group has recently benefited from relaxation of 15 percent off its initial share capital floating by the Capital Market Authority (CMA) which has taken the required capital from 40 percent down to 25 percent; the Oman Arab Bank has recently agreed to become the venture’s investment bank.

As part of its IPO, the company enlisted the unique talents of Dean Cunningham as the group CEO. He was chosen for his distinct skill set that, since his appointment last year, has enabled the group to take significant steps to reach this

Krishna Karikurchi CFO Krishna Karikurchi is a Chartered Accountant with extensive experience in corporate finance and initial public offers, as well as restructuring business units, corporate governance and company law. Prior to his current position he was Group Chief Financial Officer of Al Rawas Holding and its group companies, wherein he played an important role in the restructuring the business.

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Al Rawas Gypsum Mining Operations Salalah

“We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs” – Dean Cunningham, CEO

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critical stage. Having completed a BSc in Mining Engineering, Cunningham accrued extensive experience in corporate finance, marketing, project management, private equity and mining and, overseeing IPO listings for several companies with a similar remit to Kunooz.

He said: “I came in October last year to professionalise the business, take it to listing, to implement financial and policy structures and realise its human resources. I have also been tasked with growing the business both locally and internationally into a global mining, processing and value added business: “We have a blend of mature and young energetic skills, driving the day to day operations across the group, our focus is about team work maximising our inputs, endeavouring daily to de-

KUNOOZ OMAN HOLDING

MINING

Key Personnel

Safety Meeting at Mihwar Al Wifaq in Muscat.

risk our day to day decisions making to enhance the returns to all stakeholders�

The Kunooz Group The company logo has been designed to be truly reflective of the group. Seamlessly blended together in the design is the Kunooz name (which is Arabic for treasure) housed within a lattice of five shades of green to represent the five divisions of the group.

Al Rawas Mining The Al Rawas Mining Company is located in Salalah, the southernmost region of Oman and has a mining lease to extract 90 percent pure Gypsum. It commenced works in 2010 and since then has established a crushing and screening

Dean Cunningham CEO Dean Cunningham has a unique combination of skills and experiences which made him an ideal candidate for managing Kunooz Oman Holdings through the crucial stages of its IPO. Dean holds a BSc in Mining Engineering and has worked in corporate finance, marketing, project management, private equity and mining.

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Arabia_ENG_9.6x13.7.pdf

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T 00968 24527600 F 00968 24527621 www.ihe-oman.com ihe@ihe-oman.com International Heavy Equipment llc • P.O.Box 800 postal code 111 • Muscat • Sultanate of Oman

KUNOOZ OMAN HOLDINGS SAOC

MINING

plant with a 2 million tonne annual capacity.

Currently AMC supplies gypsum to India, Africa, Qatar, UAE, Bangladesh and Japan.

Mihwar Al Wifaq Mihwar Al Wifaq is a well-known mining company active in the Muscat area with a high-quality plant producing a range of Gabbro aggregates and crushed sand for the construction industry. It is strategically located in Wilayat Seeb to make use of the prime quality natural raw material available in Al Jifnayn.

The Kunooz Group is made up of seven companies

Majan Mining Company Established in 2006 in Salalah, Majan Mining mines and processes limestone for the global steelmaking industry and also supplies a number of clients across India. Its competitive advantage is not only the high quality and close proximity to its customers but the reactivity of the material, which enables lower tonnages consumption in the steel manufacturing process which has a net cost saving impact for its customers.

Al Rawas Marble Al Rawas Marble and Granite (RMG) Co. LLC was established in 2007 to offer the finest Omani marble to both the local and international markets.

Products exported by RMG globally can be seen adorning numerous architectural marvels across South Korea, Europe, Australia and the UAE. The company maintains a substantial stock of solid

Al Rawas Gypsum Mining Operations Salalah.

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KUNOOZ OMAN HOLDINGS SAOC

“People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside of the box” – Dean Cunningham, CEO

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June 2015

blocks, slabs and tiles to ensure that each client’s demand is methodically met regardless of scale and destination.

Salalah Readymix Salalah Readymix is a well-established leader in the local ready-mix concrete industry. Since 2006, the company has had a successful track record of completing numerous high profile projects while adhering to global quality standards. The company currently has 3 batching plants including a fleet of transit mixers, concrete pumps, trailers and cement bulkers.

Carmeuse Majan Carmeuse Majan LLC is a joint venture company led by the Belgium-based Carmeuse Holdings SA. The company is located in the Salalah Free Zone and has a single kiln with capacity to expand to an additional seven, each with an annual lime capacity of 125,000 tons per year. The majority of the plant’s output targets the Indian market, where demand for lime products is expected to rise sharply. The Dhofar region’s close proximity to the Indian and Middle Eastern markets, coupled with the presence the port at Salalah, are key factors underlying the success of the company.

Al Rawas Transport, Machinery Hiring and Trading Al Rawas Transport, Machinery Hiring and Trading LLC (ART) meets all the transportation

MINING

Weekly schedule maintenance at Mihwar Al Wifaq in Muscat.

requirements within the Group. Currently ART is catering for the complete requirement for Al Rawas Mining moving around 2.2 mtpa to 2.4 mtpa of Gypsum between its mines and the port of Salalah. In addition, it also caters for Salalah Mills, moving cargo over 1000 kilometres between Salalah and Muscat.

Cunningham commented that, despite often differing remits, the group was able to maintain an innovative spirit, he said: “People are encouraged to challenge complacency at all levels in the business; to take ownership, innovate, and think outside the box. It’s this creativeness, as well as a sense of being part of a company that will drive successes that give us our competitive advantage as we step into the global market.”

Computerized batch plant controls at Salalah Readymix.

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KUNOOZ OMAN HOLDINGS SAOC

Loading Gypsum at Al Rawas Mining into AL Rawas Transport vehicles destined for the Port of Salalah.

Quarrying activity at Al Rawas Marble at Ibri in Northern Oman.

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Taking on the world While the companies that make up the Kunooz have all had to make changes in order to meet the stringent requirements of the IPO, the group is already well positioned to compete at a global level. Having a base in Muscat and regional office in Salalah close to the local Free Zone and the Deep Water Port provides Kunooz Oman with access to the coastlines of Asia and East Africa, in addition to the other GCC countries.

The country also has over 1,700 kilometres of coastline which opens up trade with the Middle East, India, and beyond. Over $2 trillion worth of goods passes through the Salalah Free Zone each year with Kunooz Oman subsidiaries and associates contributing a significant amount of total exports through the bulk terminal in Salalah Deep Water Port.

Kunooz Oman has a strategic advantage with

MINING

Company Information INDUSTRY

Mining HEADQUARTERS

Muscat FOUNDED

2014

direct access to the GCC and potential tax free incentives coupled with lower energy costs and tax incentives and financial freedom to set its eyes not only on other territories but also firmly on the future within Oman.

Cunningham attributes the successful build up in the IPO process as being due to the forward thinking and positive attitude of the Al Rawas family, he said: “They have always looked to add value to Oman through their historical investments; they want to use Kunooz Oman as growth platform, which is why they have spared no costs and have brought in a professional team to allow this to succeed.�

It is therefore evident from its recent proactive approach that Kunooz has succeeded through a combination of its dedication to the success of Oman and its shrewd foresight to bring its business operations into the 21st century.

EMPLOYEES

657 REVENUE

$43 million (2014) PRODUCTS/ SERVICES

Mining, Logistics, Manufacturing.

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Giza Systems

Integrating Growth A blue ocean approach to industry specific technological solutions Written by: Nye Longman Produced by: Kevin Holmes

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GIZA SYSTEMS

G

iza Systems has been operating successfully since 1974 and has grown to be a provider of niche systems integration solutions across Africa and the Middle East, implementing projects as far afield as Russia and Latin America. Effectively combining decades of experience and market-breaking foresight, the company has struck a seemingly magical formula for growth in all directions: from its revenues, to its capabilities; from its employees to local communities.

Operations The company provides a range of industry specific technology solutions to asset-intensive industries which include telecoms, utilities,

Giza Systems Headquaters

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TECHNOLOGY

oil and gas, real estate, transportation, and manufacturing. Although its remit generally covers large scale, long term projects, it also provides operations and maintenance services as part of its portfolio.

Chairman and CEO of Giza Systems, Shehab ElNawawi has been shrewdly monitoring systems trends, he said: “Over the past five years, developers in the power sector, which is traditionally the field of engineering, are looking at using ICT to effectively manage demand, and that needs our technology.” His observation can be seen in the simple but extremely effective blue ocean strategy that the company adopts across all of its operations; it is certainly one that has allowed Giza Systems to expand across into

“Over the past five years, developers in the power sector, which is traditionally the field of engineering, are looking at using ICT to effectively manage demand, and that needs our technology.”

- Shehab ElNawawi, Chairman and CEO of Giza Systems,

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GIZA SYSTEMS

Giza Systems power project

“On our commercial side we are developing a portfolio of IOT products – our long standing partnerships mean that we have a tremendous understanding of what is required by our clients” - Shehab ElNawawi

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many countries, into new areas of technology and to become a strong regional player.

Giza Systems has continuous improvement at the core of its business practices; Shehab said: “We have a scorecard system that we use to measure our corporate performance; this is cascaded to departments and individuals; we track how we are performing year on year.” Using this system not only instils a feeling of progress within the company’s ethos, it also provides employees and management teams with hard facts to build on to ensure future success. It has cemented this initiative through its continued adherence to the ISO:140001, ISO:9001 and OHSAS:18001 global standards.

Shehab explained how the business was able to weather economic uncertainty and regime

TECHNOLOGY

change in Egypt: “It forced us to expedite our business in Kenya, Tanzania and Nigeria; our business in Saudi Arabia also kept growing.” It is therefore clear that diversification has enabled Giza Systems to remain profitable despite a major slowdown in a key territory.

In order to remain commercially agile and to maintain focus on its corporate objectives, the company maintains a wide range of partnerships across multiple sectors across Africa and the Middle East. Alongside partnerships with the Egyptian state water and electricity authorities, Giza Systems’ technological solutions are utilised by large providers such as Kenya’s KenGen, Saudi Telecom Company (STC), Tanzania Electric Supply Company Limited (TANESCO), and Ethio Telecom of Ethiopia.

Airport complexity

Diversification has enabled Giza Systems to remain profitable despite a major slowdown in a key territory.

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GIZA SYSTEMS

TECHNOLOGY

‘Blue Ocean’ technology Shehab explained the subtly sophisticated tiers of thinking that go into Giza Systems’ blue ocean strategy: “We are 45 years old but we have the mind-set and energy of a 20 year old, and the curiosity of a 5 year old. We try to blend these together, encouraging our employees to question the group’s performance. Everybody understands this exercise.”

Recognizing current and future technological trends has enabled Giza Systems to become instrumental in orchestrating convergence between differing sectors; Shehab explained: “Over the past five years, developers in the power sector, which is traditionally an engineering field, are moving into using IT solutions. But you need an SI (Systems Integrator) that understands

SUPPLIER PROFILE

Powerline construction

PHOENIX CONTACT MIDDLE EAST

PHOENIX CONTACT, founded in 1923, with headquarters in Germany is a leading manufacturer of electrical connection, electronic interface, and industrial automation technology. Our worldwide distribution activities are effected via a global network with 14,000 employees, 50 own subsidiaries and more than 30 representations in Europe and Overseas, while the production network includes five production sites in Germany and ten production facilities in various parts of the globe. The product range includes components and system solutions for energy supply, including wind and solar, device, machine tools and control cabinets.

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Transmission project

Alarm & Detection since 1871

the power industry in order to make that transformation. That is where we come in: we offer the best of both worlds.”

Utilising Supervisory Control And Data Acquisition (SCADA) systems, the company has been able to supply data management to one of humanity’s oldest practices: irrigation. In short, SCADA enables organisations to control equipment remotely, while simultaneously capturing data in the process. Shehab said: “We automate irrigation outlets – these are the biggest plantations in eastern Saudi Arabia which again proves that we are a leader in this space; we implement the systems that collect the

Mass Notification Smoke Detection Incident Management Instant Messaging Industrial Signaling Voice Evacuation Smoke Control

Fire Suppression CO Detection Heat Detection Audible/Visible Signals Voicemail Messaging Duct Smoke Detection Electronic Signage Area of Rescue

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www.kiddefiresystems.com

Kidde Fire Systems is a global leader in fire protection, protecting people, property, and processes from fire hazards. Whatever your business, wherever you work, a Kidde Fire Systems solution can be designed to protect your team and your operations.

Our fire protection solutions include intelligent smoke and heat detectors, conventional and networked system controls, and the largest portfolio of fire suppression agents in the industry. And it is all designed, installed and maintained by Kidde Fire Systems’ highly skilled Authorized Distributor network.

InDuStRIeS we PROteCt Cement Plants Clean Rooms Commercial Kitchens Communications Data Processing Heritage Preservation Iron and Steel

Industrial Processes/ Manufacturing Marine Mining Oil and Gas Power Generation Records Storage

TECHNOLOGY

data, consolidate it through our cloud offerings and analyse it through our business intelligence portfolio.”

He added: “On our commercial side we are developing a portfolio of IOT products; our long standing partnerships mean that we have a tremendous understanding of what is required by our clients.” Working closely with clients has therefore enabled the company to remain in a position to not only offer clients the newest technology, but solutions that are customised to the particularities of each client and sector individually.

Growing responsibly Working for a leading niche company provides Giza Systems employees with unique opportunities for growth and development, Shehab was keen to link this with the success of the business, he said: “There are always opportunities because the company is growing.” Employees can therefore reap all the benefits of being part of a growing, indemand organisation, but are also subject to the often all too rare experience of occupying a unique space in the market.

This aspect of the company is leveraged to provide a particularly rewarding experience for engineering graduates beginning their career with Giza Systems; Shehab said: “We make sure that the environment for our graduates is friendly, unencumbered and simple – the projects are always challenging and the tech is always cutting edge.” From the outset, employees can

Key Personnel

Shehab ElNawawi Chairman and CEO Shehab ElNawawi is the Chairman and CEO of Giza Systems. He joined the company as Managing Director 2000 on a downturn, and by 2004 he turned the company around, then he tripling its top line and quadrupling its market valuation. He became the Chairman of the company in 2007.

Shehab holds a BSc in Biomedical Engineering from Cairo University; he started his career in 1987 as a field engineer for Schlumberger Wireline in India where he remained until 1991.

He then became the Network Manager for Rogers Data Services in Canada, overseeing technical trials of dataover-cable in 1994. In 1996 he ran the North Middle East sales office for Newbridge Networks, a voice and data switches manufacturer.

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Toukh Water Plant

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see a clear line of career progression, alongside a bonus system linked to the company’s improvement score card and pension plan.

Giza Systems has involved itself in a range of initiatives aimed at improving the conditions of its employees and the communities it operates in. Shehab elaborated: “In order for us to win business, we have to establish trust with our customers; we don’t plan hit and run opportunities. We employ local people, develop them and get them to volunteer to help others in their country. The private sector must pay back to the societies it works in, if not it is not conducive to long term business growth.”

Giza Systems offers funding, technology, and

TECHNOLOGY

Power plant

Company Information INDUSTRY

Techonology HEADQUARTERS

New Cairo, Egypt FOUNDED

1974 EMPLOYEES

800 REVENUE

expertise to initiatives in Cairo. It has pioneered a project that supports local women making schoolbags by hand using recycled materials by providing them with business support and assisting with microfinance arrangements. The company also sponsors a fabrication laboratory (FAB lab) that provides students with cutting edge design technology for free.

As a company whose success is so closely tied to the prosperity and development of its clients, Giza Systems has set a precedent for businesses everywhere. It has developed its own unique success story by concentrating on innovation and breaking new ground, as well as only competing with the standards it has itself set.

Not disclosd PRODUCTS/ SERVICES

Systems Integration

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Quality service like no other.

Based in Ballymoney, Northern Ireland, JMF is a major sub-contractor to the manufacturing business throughout UK and Ireland.

Investment over the years on high technology equipment has kept JMF at the front as a sub contractor. JMF’s ability to finish product and deliver to your door using our own transport fleet makes us your best choice.

Plasma Cutting • Laser Cutting • Press Brakes • Welding • Punching • Fabricating • Powder Coating • Delivery

T: +44 (0)28 2766 5817 F: +44 (0)28 2766 5887 sales@jmf-ltd.co.uk

www.jmf-ltd.co.uk

69 Frosses Road, Ballymoney, Co. Antrim, BT53 7HN, UK

METAL FABRICATIONS