JEDDAH: Sigma Paints, which achieved a 25 to 30 percent growth in business last year, is looking at further expansion of its production facilities as well as setting up new factories across the Middle East.
"Two comprehensive feasibility studies have been finalized, and the projects are currently in the approval stage," Mark van Diemen, general manager of Sigma Paints Middle East, said over the weekend. "The company has one of the largest sales network s covering all the GCC and Levant countries. It also has a production facility in Egypt, which began operations in 2004.
Established in 1981 in Dammam, Sigma paints Saudi Arabia is a consortium of Saudi businessmen and the US-based PPG Industries. In fact, Sigma Paints, founded in 1722, and as part of PPG, forms the second largest paint manufacturer in the world.
"Sigma currently ranks among the top two companies in the Kingdom and is one of the leading multinational paint manufacturers in the Middle East market," Van Diemen said.
Sigma Paints Saudi Arabia has split production facilities in the Eastern Province with the bulk of the water-based decorative range produced in the second industrial city, Dammam. The solvent-based products are produced in the first industrial city, Dammam, the location of Sigma's headquarters. Saudi Arabia being Sigma's largest market in the region, the company has an annual capacity of 70,000 tons per year in the Kingdom and is one a continuous quest to set up new regional production facilities in order to improve the supply chain, according to Van Diemen. "It is vitally important to develop the supply chain in order to have a point of supply close to the customers. This will ensure the highest level of service."
Speaking with the weight of experience in setting up successfully manufacturing plants in China and India and spearheading their vertical growth, Van Diemen said: "Sigma Paints, which have showrooms dedicated for women in the region, has been consistently outpacing the growth of the Saudi paint market, which is witnessing an annual growth of seven percent. Saudi Arabia is the largest paint market in the GCC worth about SR2.8 billion, with the decorative paint market accounting for more than 75 percent of it."
"Our gallant achievements throughout 2007 have inspired us to set a target of a further 15 to 20 percent of growth for the coming year. During 2007, we invested heavily - Sigma's highest capital investment ever - in production, logistics and warehousing. This investment in our production facilities in the Middle East has gone toward increasing our overall capacity and enhancing the flexibility and diversity of our production," he added.
Van Diemen also credits the company's success to its significantly increased research and development facilities, their sterling efforts and focus on customer needs. "We are transforming from a technology-focused to a market-driven company and are exerting to turn Sigma into a multifunctional, multimarket company. All three sectors - decorative, marine and protective coatings - are key to the company's success and we aim to be the leaders in each and every sector," Van Diemen said.