Five minutes with Robert Holtkamp, NAPCO
Robert Holtkamp, Chief Executive Officer, NAPCO said for 2016 the firm plans to increase production by up to 50% over last year
How was business for National Aluminium Products Company (NAPCO) in Oman during 2015?
In terms of volume and revenues, 2015 was the best year in NAPCO’s history. We could have sold even more than our capacity, so it was a very good year for us. Consequently, we posted an 11% year-on-year rise in net profit in 2015.
How has business in Oman been for NAPCO so far in 2016?
Due to our strong performance in recent years, we have embarked upon an expansion strategy to increase our annual production capacity. In hindsight, owing to the current economic climate, perhaps we would have postponed this expansion. That being said, NAPCO will grow its production by at least 45% in 2016, so I’m feeling very positive about the future.
Could you provide further details about this expansion?
Given the ideal product mix, NAPCO could produce around 22,000 tonnes per year with its existing equipment. In 2015, we produced 19,126 tonnes, which was very good. We’re now expanding by another 19,000 tonnes, bringing this capacity to approximately 38,000 tonnes. We’re also refurbishing all of our presses, which should give us an additional 4,000 tonnes. In full swing, we’ll be able to produce 42,000 tonnes per year.
NAPCO also purchased a vertical powder coating line, which is able to accommodate up to 8m, taking its total powder coating capacity to 27,000 tonnes.
In terms of timeframe, I expect that our expansion activities will complete before the end of 2016. NAPCO will double its capacity this year. Some of our increased capacity is already online, and by the end of this month, everything should be commercially operational. As is typical in the manufacturing sector, it will take a few months to conduct appropriate training and get everything lined up.
To what extent will these activities strengthen NAPCo’s market position?
In 2016, we’re planning to increase production by up to 50% over last year. In 2017, we’re looking at doubling the figure achieved in 2015. NAPCO is likely to rank somewhere in the top 10 of the extrusion world by the end of 2016. We should be placed in the top five by the end of 2017.
What are NAPCO’s strategic priorities for Oman?
NAPCO has built a solid reputation as an aluminium extruder in Oman, and indeed, across the region. We will continue to focus on client relationships and providing a high-quality product for a fair price.