Big 5: Alessa calls for unified HVAC code in GCC

A universal HVAC code is required for the GCC says Alessa.

The GCC should adopt a unified HVAC code in order to support local manufacturers, the MD of Saudi Arabian based HVAC manufacturer and contractor Alessa commented at The Big 5.

Originally a supplier of air-con equipment, Alessa has branched out into manufacturing and commercial contracting. It currently exports its products throughout MENA, Abdullah M Abdul-Kareem said.

“We are aligning ourselves with the requirements of each country. Saudi Arabia has introduced tighter regulations, which were enforced from last year.

"The UAE also has its own standards. It is difficult because you have to have different designs when you come to each country,” he said.

“You have to have an amount of spare parts and an amount of support, and the market, in terms of size, is not that huge to justify the different standards,” he added.

“If we could unify our energy standards, it would provide much needed-support from the GCC governments towards local manufacturers. If the European Union can unify its standards, I do not see any obstacles that prevent the GCC from doing so.”

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the last year, the Alessa Group saw a turnover of $400m. Abdul-Kareem said that around 30% of the company’s revenue came from exports.

Although the Arab Spring had impacted export sales, the company had managed to weather the turmoil by reaching out to the internal Saudi Arabian market.

“Saudi Arabia is enjoying, and will continue to enjoy, over the next three or four years, a big growth due to government expenditure on new infrastructure and new housings for its citizens,” said Abdul-Kareem.

“This means our competitors and ourselves, local manufacturers, will see a sizeable growth in Saudi Arabia. We were able to rectify some of the sales that were lost in the export market through the local market,” he explained.

The company has three arms, consisting of a manufacturing arm that supply the retail and contracting divisions.

“Retail is the oldest and is growing at around 15% a year, while the newer arm of contracting, which is a two-year-old company, is enjoying between 30% to 40% growth,” he added.

“Contracting is adding new products, where the nature of them is high-tech components, plus the contracts they’re involved in are generally quite large. This is centre to that growth.”

Over the course of 2011 to 2012, the company’s focus has been on air-handling units, which incorporates new technology from America, which is being reproduced in the Saudi Arabian factory.

“We have built a new factory for it and the factory is in the commissioning stage and it’s going to be producing its first unit in December and delivering by January. The capacity (of the factory) is around 900 units per year. These are of course large size air handling units for commercial buildings,” Abdul-Kareem said.

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