Yanbu Cement Company

Yanbu Cement Company

In the span of just four decades, the Yanbu Cement Company has established itself among the Top 100 industries in Saudi Arabia. Based in Jeddah, Yanbu was created in 1977, though it would take two more years before it officially began daily operations. The western regions of Saudi Arabia, specifically Madina and Mekka are areas where Yanbu’s presence is most evident.

Daily production of close to four million tons clinker each year is a far cry from its earliest days. Beginning with two kilns, the company added a third in 1982 before waiting another 15 years to add another one. This kiln was the largest in the Middle East at the time and helped add a whopping 2.1 million tons clinker to the yearly output.

While another kiln that was added in 2005 only contributed 500,000 tons to the production per annum, it gave Yanbu a state-of-the-art kiln that uses current technology in the short dry process. By 2012, the last expansion allowed daily production to reach 22,500 tons clinker per day.

In order to provide jobs to Saudis and build up a pipeline of qualified workers, Yanbu began a training center in 1998. While the main focus is to train engineers and technicians to work for the company, a unique compact with the Arab Cement Union was also crafted. This helps create employees for competing cement firms, with the union providing those engineers and trainers to teach those seeking work while also approving certificates issued after successful completion of courses.

Yanbu is not immune to the continuing drop in oil prices, which is why in April 2016; the Saudi government lifted its 2008 ban on the exporting of cement. That original decision was made in order to jump-start infrastructure projects in the Kingdom, which was experiencing heavy demand.

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Saudi International Petrochemical Company

Saudi International Petrochemical Company

Since its formation in December 1999, the Saudi International Petrochemical Company, more commonly known as Sipchem, has built itself into a chemical manufacturing company that now employs over 1,100 people.

Sipchem is owned by Saudi private investors and other individuals from countries that make up the Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar and United Arab Emirates. This group began with an investment of $500 million and has seen the value grow to the point that revenue in 2015 was nearly double that amount.

The company produces items that take advantage of the abundant reserves available in Saudi Arabia. Among the items that Sipchem sends out on a regular basis are those made of acetate, include butyl, ethyl and ethylene vinyl. In addition, polyethylene that’s either cross-linkable or low density is also available.

Despite the environmental reputation that oil has with some facets of society, great care is taken to produce plastics that can be sustained, engines that can be fuel-efficient and metals that are made to be non-corrosive.

Despite the constraints of Sharia law, which allows for no interest to be charged or earned, Sipchem completed a five-year bond issue worth $266 million in June 2016 that will be used to pay off financially based obligations.

Just one month before, news of Sipchem possibly merging with another Saudi chemical company resurfaced again after talks had apparently ended two years earlier. Should the company merge with Sahara Petrochemicals Co., it would help create a company with a $2.7 billion market value.

Conflict developed in 2014 when it came to determining a proper structure for the merged company. Since that time, the price of oil has been cut in half, though should this agreement proceed, it will be the biggest convergence of companies within Saudi Arabia in the past decade.

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Ma’aden – The Saudi Arabian Mining Company

Maaden

Ma’aden, officially known as the Saudi Arabian Mining Company, was created in 1997 by the Saudi government in order to fully exploit the rich mineral resources within the country. Based in Riyadh, the Ma’aden has a number of subsidiary offices around the country.

For its first 11 years of its existence, the firm was owned exclusively by the government before stock that comprised 50 percent of the company was offered on Tadawul, the country’s stock exchange.

The commodity projects that Ma’aden has undertaken involve those seeking gold, aluminum and phosphate. One of the by-products of these minerals, diammonium phosphate (DAP) has a collective market of $15 billion, with Ma’aden having eight percent of the market share. It also has a small sliver (one percent) of the $90 billion market that makes up the aluminum industry.

Exploration into acquiring reserves of bauxite, which is necessary in the making of aluminum, continues. In addition, other commodities like copper and uranium are on the country’s list of sought-after minerals. However, aluminum still brings in the most revenue.

Throughout this period, the continued development of Saudi Arabia’s infrastructure capabilities has allowed these minerals to be transported from their remote origins to the marketplace. Railways have served as an invaluable outlet in this area, though other projects like paved roads and interlaced pipes have also helped inject added life to the company’s balance sheet.

With petrochemical businesses and the oil industry literally helping to fuel the country’s continued growth already, Ma’aden is seeking to make its mark to help Saudi Arabia diversify its business interests into the lucrative world of minerals.

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ALDREES Petroleum and Transport Services Company

Aldress

Aldrees is a Saudi Arabian firm that specializes in Petroleum and Transport services. The company was first established in 1957 and began its operations by selling oil products. In 1963, Aldrees started its first petrol station in the Saudi Arabian capital of Riyadh. The petrol station was rented and not owned by the firm. However, by 1965, Aldrees’s Petroleum Services Division started turning significant profits. As a result, the eventual expansion of the company began and spanned a period of 40+ years. The company has contract deals with both, the government and private organizations. It also operates several strategically located service stations across Saudi Arabia to provide service to its growing client network.

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