DAMMAM, 26 April 2007 — Saudi Readymix Concrete Company President Rami Al-Turki said that his company will invest SR320 million in 2007, excluding funds for mergers and acquisitions.

“Last year we produced three million square meters of concrete, a first in the company’s history,” he said, predicting that this output would rise to four million square meters in 2007.

In an interview with Arab News recently, Al-Turki discussed Saudi Readymix’s plans.

Q: What are your company’s current and future projects?

A: We are aiming at expanding our business all over the Kingdom and upgrading our equipment. As far as marketing is concerned we are targeting the local market at the time being.

Q: How do you see the state of the industry at the present time?

A: The local and regional economies are witnessing an unprecedented boom in construction that has positively affected our business.

Q: How many concrete manufacturing companies operate in the Kingdom? And how large is the size of investment of ready-mix concrete in the Kingdom? And how to you perceive local and international competition?

A: I believe that there are about 350 concrete manufacturing companies in the Kingdom. The majority are small companies with limited production. There is no official numbers available on size of concrete investment in the Kingdom. Regarding competition, doors are open because you cannot monopolize technology. The key to survival is who has the capability to invest in developing his factory systems and services, in addition to hiring the best human resources available and training them through the highest standards and maintaining them to build the future of the company.

Q: Is there any future plan to expand your business inside and outside the Kingdom?

A: Yes, definitely there are future plans to expand inside the Kingdom. Our goal in the end is to operate all across the Kingdom and to expand in the north and south. Regarding outside expansion, we are studying our available opportunities and placing our plans based on our priorities.

Q: What is the percentage of Saudi workers in your company? And how are they chosen?

A: We have a 16 percent Saudization quota. They have been chosen through consistent communication with universities and institutions. In addition to organizing job-recruitment campaigns, the company hires Saudis by participating in the Prince Mohammed Program on youth employment, through the Qantara project, the Manpower Development Fund, newspaper advertising and the labor office. I call on any person wishing to land a job at our company to visit our website (www.saudireadymix.com) or to directly contact us. We need ambitious and serious Saudi youth.

Q: What are the obstacles you face regarding investment in concrete production?

A: One of the major obstacles is the difficulty in obtaining industrial properties to perform our business. Another obstacle is not having one set of standards that is followed by concrete production companies from quality to equipment maintenance and so on. I would like to see a national commission be established to set the specifications guidelines. Another issue is the difficulty in attracting Saudi youth to our line of business and the high demand for highly qualified employees due to the construction boom. That is why we are on the verge of establishing a training center for Saudi youth to train them in different areas of our business to solve this problem.

Q: Does the company have any intention to allow foreign partners in its current or future projects?

A: Not at this time. We have enough financial and technical assets to cover our demand. In the future we wouldn’t have any objections to this if there is a need.

Q: What is the company’s revenue in 2006? And are you expecting an increase this year?

A: We achieved a record numbers, sales reached SR640 million and production was 3 million square meters.

Q: How are you facing the shortage of cement that occurs occasionally in the Saudi market?

A: We try as much as possible to avoid such situations by signing contracts with cement producers to provide us with required daily amount of cement to minimize the shortages. We build business relations with all raw material producers we deal with, not just cement.

Q: How did you manage to keep up with increase in demand in the past three months, and what are the strategies followed in such cases?

A: As I mentioned we plan to increase our production size this year to cover the increase in demand by establishing new factories and acquisitions. And we have opened two permanent factories. Now we are on the verge of establishing approximately five “on the spot” factories in different areas in the Kingdom. We are on the border of increasing the size of our current fleet.

Q: How to you see the privatization process? Don’t you think that it is somewhat slow in comparison with the international pace?

A: I agree with the government’s decision concerning that matter and believe that opening the door to competition, such as airlines and telecommunication for example, has managed to encourage companies to improve their services and develop their products.

Q: Saudi Arabia, in general, and Eastern Province, in particular, is witnessing business and industrial boom. How do you evaluate the commercial and industrial sector and its effect on the region?

A: I am optimistic because I see that it is growing in the right direction and that is by being less reliant on oil as a main source of income and instead, by focusing more on developing other fields.