Saudi Ceramics starts test-run at new factory
Tile and heater supplier expects US $30m annual income from new plant
Saudi Ceramics Company has completed the construction and installation for a new factory that is expected to come on line during this quarter.
The Riyadh-based firm is now starting a pilot production for ceramic tubes and is expected to have an annual capacity of 60,000 tonnes of clay pipes. The annual revenue of the new factory is estimated at US $30 million.
The new facility has been fuinded 50-50 by Saudi Ceramic Company and a subsidiary, Ceramic Pipe Company. It will be overseen by its own management and general manager.
Saudi Ceramics Company manufactures tiles and bathroom-ware as well as water heaters. It posted an 11% rise in net profits for the first nine months of 2010 – SAR 162.5 million - against the same period last year. Third-quarter profit slipped 13% to SAR 46.2 million against last year as sales fell.
Last month, the company said it would pay a dividend of SAR 3.5 per share, equal to 35% of its paid-up capital. Yesterday the company’s stock rose 0.167% to close at SAR 150.25, and is up 10% since the start of December.
Abdulkareem Alnafie, CEO, told CW yesterday that the company had seen a gap in the Saudi market as a big distruibuitor of clay pipes, which will chiefly be used for water drainage from residential buildings.
"We hopefully will be starting it in the first quarter, though its a highly technical product,"he said. "Mainly it's toward the water companies and government, those working on water infrastructure," he added, though said there is no limit to the product being distributed internationally.
Saudi Ceramics already has customers in Europe for its existing product lines.