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Issue )39( - 1430 - 2009 Quarterly Issue of Alkhorayef Group of Companies Saad Alkhorayef: Taking Products to Global Markets is Best to Reinforce Saudi Economy Alkhorayef Pumps Extract Oil in Russia Attempts to Destroy Castrol’s Reputation The Saudi Kingdom is One of The Highest Countries in Water Waste

Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

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Page 1: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

Issue )39( - 1430 - 2009Quarterly Issue of Alkhorayef Group of Companies

Saad Alkhorayef:

Taking Products to Global Markets is Best to Reinforce Saudi Economy

Alkhorayef Pumps Extract Oil in Russia

Attempts to DestroyCastrol’s Reputation

The Saudi Kingdom is One of The Highest Countries in Water Waste

Page 2: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

Abdullah Al-Ibrahim Alkhorayef Sons Company Groupits staff and Alkhorayef family

Present their

Heartfelt congratulations toH.H. Prince Nayef Bin Abdulaziz AlSaud

For the Royal confidence appointing him Second Deputy

Prime Minister

Wishing His Highness every success is serving Islam, the King

and Saudi Arabia

Page 3: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

1Issue (39) 1430 - 2009

Editorial

For more than 50 years Alkhorayef Group worked restlessly and spared no effort to provide the best products and top quality services to its customers through its carefully-chosen employees trained to acquire the necessary skills to enable them to give the best efficient service to meet the ambitions and expectations of its customers.

In that time Alkhorayef developed in leaps and bounds in its scope of work. Results: Diversity in business, access to new markets and expansion on local and international levels. Consequently, new independent companies were established in the Alkhorayef Group to continue presenting high quality service. The Group’s employees played a significant role in preserving standards, and kept their customers satisfied through the company values that stress on:

• Providing top-quality products and services at the highest level.

• Taking care of their customers and employees, and Alkhorayef’s keenness to build long-term partnerships with them and be aware of their needs and meet them to the best of the company’s ability.

• Credibility with customers, suppliers and employees and commitment to delivery.

• Confidence in our abilities, skilled staff and to our work objectives.

Our wish to conform to these values and reinforce them among our employees, customers and suppliers and because of our compliances to the demands of the era for renewal, it is critical to develop our identity, and the company’s slogan, to meet all the requirements and enhance our values and concerns through developing a partnership between all work parties.

After assigning a leading international company in the development of corporate identity, we have adopted the new slogan to represent the identity and strategy of the group that will soon be applied as soon as related application procedures are completed.

Finally, I wish to thank all our employees for their efforts to reinforce the values of the company that became the main features of the Group’s identity.

I hope we go on working in the same spirit, being proud of our values and keep our employees as partners-in-success as they have always been. I wish you all prosperity.

Saad Alkhorayef Chairman

New Slogan for a New Era

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Issue (39) 1430 - 20092 3Issue (39) 1430 - 2009

Abdullah Ibrahim Alkhorayef Sons Company

Riyadh 11411 P.O.Box 305Tel.: (+9661) 435 14 79Fax: (+9661) 435 88 52

Alkhorayef International Company

Riyadh 11411 P.O.Box 305Tel.: (+9661) 495 28 94Fax: (+9661) 213 47 58

Reaching our customers throughout the world, providing comprehensive solution programs, and working with colleagues as partners.

To achieve our dreams of growth by entering new markets, providing high quality products and services, and taking opportunities resulting from the hard work of our employees who were carefully chosen and sent for training to play an effective role in technology transfer and environmental preservation.

Alkhorayef Core Values

Publisher

A company of Printing

Articles Published in Alkhorayef bulletin express only the writers’ view-points and the bulletin holds no responsibility for them.

• Growth • Technology transfer.• Protecting the environment. • Developing society.• Taking care of employees.

Alkhorayef Vision

Alkhorayef Mission

News

Chairman, Board of Directors

Abdulrahman Abdullah Alkhorayef

Editor-in-Chief

Saud Abdulaziz Alswailem

Editorial Supervisor

Saleh M. Alshamrani

Alkhorayef Group Company

Riyadh 11411 P.O.Box 305Tel.: (+9661) 495 54 52Fax: (+9661) 495 02 61

Alkhorayef Petroleum Company

AlKhobar 31952 P.O.Box 30204Tel.: (+9663) 858 80 90Fax: (+9663) 857 85 69

Alkhorayef Lubricants Company

Jadah 21312 P.O.Box 11810Tel.: (+9662) 697 44 14Fax: (+9662) 697 38 27

Alkhorayef Industries Company

Riyadh 11411 P.O.Box 305Tel.: (+9661) 265 11 24Fax: (+9661) 265 23 48

Alkhorayef Water & Energy Technology

Riyadh 11595 P.O.Box 62637Tel.: (+9661) 435 14 79Fax: (+9661) 435 74 10

Alkhorayef Agricultural Projects Company

Riyadh 11583 P.O.Box 53390Tel.: (+9661) 435 14 79Fax: (+9661) 435 29 68

Saudi Parts CenterCompany

Riyadh 11551 P.O.Box 42679Tel.: (+9661) 495 09 17Fax: (+9661) 495 33 51

Alnakhil Paper Industries Company

Riyadh 11416 P.O.Box 22815Tel.: (+9661) 265 02 01Fax: (+9661) 265 01 82

Trans Orient Modern Machinery Company

Riyadh 11412 P.O.Box 4605Tel.: (+9661) 478 61 61Fax: (+9661) 477 54 39

Saudi Installment House Company

Riyadh 11451 P.O.Box 18331Tel.: (+9661) 492 50 00Fax: (+9661) 492 25 70

Alkhorayef Management Services

Riyadh 11411 P.O.Box 305Tel.: (+9661) 460 08 58Fax: (+9661) 460 08 15

All correspondence should be sent to the Editor-in-Chief, G.M., and Human Resources DepartmentP.O.Box 305, Riyadh 11411 Tel: 01/4955452Fax: 01/4950261 - E-mail: [email protected].

P.O.Box 65701, Riyadh 11566 Kingdom of Saudi Arabia Tel: 00966-1-212-8001 Ext.: 1835 Fax: 1085

[email protected]

Tel: 00966-1-265-7000 Fax: 00966-1-265-8000Sales Office

Tel: 00966-1-217-7995 Fax: 00966-1-465-2315

Issue (39) 1430 - 2009Quarterly Bulletin of Alkhorayef Group of Companies

At the invitation of Alkhorayef Petroleum Company (APC) a delegation of 60 employees from Saudi Aramco visited, late January, APC’s Submersible Pump Factory (WSP) and Western Engineered Pumps and Components Factory (WEPCO).

The delegation led by the executive manager of Aramco’s Oil Operations in the Southern Region Mr. Tariq Al-Treiqi, included members from Oil Operations in the Northern Region department, mechanical maintenance workshops department, consulting services department, inspection department and production development department.

The Group’s Chairman His Excellency Sheikh Saad Bin Abdullah Alkhorayef along with APC Chairman David Henderson and a number of APC executive directors received the delegation.

The delegation was briefed on APC’s operations including manufacturing, operations, services and maintenance of submersible pump systems as well re-engineering and re-production of valve components, pumps and pressure equipments.

Latter the delegation toured the industrial facilities and watched a live illustration on casting steel to show the complexity of this manufacturing process.

A luncheon reception was held and APC’s management expressed appreciation for Aramco’s support of local manufacturers and thanked them for visiting its facilities.

Aramco Delegation Visits APC

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Issue (39) 1430 - 20094 5Issue (39) 1430 - 2009

News

Alkhorayef became the first Saudi company that manufactures and exports electric submersible pumps to Russia.

Alkhorayef Submersible Pump Systems Co. signed a contract with Naryanmarneftegaz, to export a number of electric submersible pumps to Russia and install them in very bad weather and in oil fields that can only be reached by helicopters and other ones where temperatures reach less than zero.

The Naryanmar Co has a strategic significance to Russia, representing LukOil, the largest national oil company in the nation. Naryanmar is the second largest oil stable reserves public company in the world. Its partnership with Alkhorayef proves our idea that it is indeed success is achieved through partnership.

Alkhorayef Pumps Extract Oil in Russia

The Leader Training Program, started a year-and-half ago at the Alkhorayef Industries Co’s AIC equipment systems division was concluded recently. The trainees passed different personal and professional skill tests and took part in several training courses to develop their professional, work and leadership so that they can acquire new abilities, adapt to changes in the labor market and come to hold leadership positions in the company. The program’s objective, organized under the supervision of the AIC training department, was to retain skilled young employees and develop their skills.

At the end of the program the trainees, including Fahd Al-Jadaan, Ibrahim El-E’nezi, Fahd Al-Saif and Sulaiman Al-Ma’youf, received an appreciation letter from the Group’s Chairman Sheikh Alkhorayef.

Employees of the Alkhorayef Petroleum Co’s Kuwait Branch donated blood to Gaza victims under the supervision of Operations manager Younes Al-Shatti. Some of these employees donated twice within two days.

Chairman of Alkhorayef Group and Riyadh Chamber of Commerce and Industry’s board member Sheikh Saad Bin Abdullah Alkhorayef received recently ambassador of Kazakhstan to Saudi Arabia, Khyrat Lama Sharif, at the company’s headquarters. In the meeting Alkhorayef briefed the ambassador on the achievements and progress of the company, its activities, products and outside expansion.

The Ambassador discussed cooperation between the Company and the Republic of Kazakhstan and learned about the Group’s experience that may be applied in his country. At the end of the visit Alkhorayef presented a souvenir to Sharif.

Engineer Mohammed Alkhorayef recently inaugurated the new headquarters of the Trans Orient for Marketing Company in Egypt’s 6th of October City. Officials, businessmen, project developers and a high-ranking delegation from the French John Deere Company were present in the opening ceremony.

In a speech delivered by Mr. Alkhorayef he talked about the pioneering role of the Alkhorayef Group in the development of modern mechanical agricultural projects in many countries. He stressed the dynamic investment atmosphere in Egypt and underlined his company’s plan to invest and present its experiences in the Egyptian agricultural sector.

Sales manager of John Deere’s Agricultural Equipment Department Hans Bayer talked about the long-term relations that developed between the Alkhorayef Co and John Deere Co over the years and added Trans-Orient for Marketing Co represents the continuity of relations with Egypt.

Director of Trans Orient for Marketing Bernard Brans welcomed the guests who were shown around the new headquarters and its departments including spare parts, after sales service and the latest John Deere’s agricultural equipments.

Sheikh Saad Alkhorayef Receives Kazakh ambassador

Leader Training Program Concluded at AIC

Alkhorayef Employees Donate Blood to Gaza Victims

Fahd Al-Jadaan

Fahd Al-SaifSulaiman Al-Ma’youf

Ibrahim El-E’nezi

In presence of high ranking officials and businessmen

Trans Orient for Marketing Opened in Egypt

Delegation of Armed Forces’ Printings Visits Al-Nakheel

Chairman and Executive Director of Trans Orient Modern Machinery Co His Excellency Sheikh Bandar Ibrahim Alkhorayef received a delegation from the Armed Forces’ Printings led by brigadier general Dhafer Bin Mohammed Al-Shahri who visited recently Al-Nakhil Paper Industries Company’s factory. The delegation looked into the operations and production in the factory to benefit from its experience.

Sheikh Mohammed Alkhorayef issued an administrative decision appointing Mr. Alaa Mohammed AlSanawi general manager of the information systems department. Alkhorayef called on all employees in the Group to cooperate with Sennawi so he can succeed in his mission.

AlSanawi New Manager of Information Systems

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Issue (39) 1430 - 20096 7Issue (39) 1430 - 2009

News

Alkhorayef Lubricants Limited Co (ALC), main distributor for the worldwide CASTROL oils and lubricants, signed a contract with the doyen of world players and goalkeeper of the Saudi Al-Helal soccer team Mohammed Al Deayea to be CASTROL’s ambassador, the sponsor of the 2010 and 2014 World Cup tournaments, in the Gulf region.

Alkhorayef Group’s Chairman Sheikh Saad Alkhorayef signed the contract on behalf of the company. He said the contract will help achieve the objectives of the campaign because Al Deayea is very popular and has a large record of achievements.

Al Deayea was very happy for this cooperation saying that he will devote his experiences to achieve the goals of the sponsorship.

A workshop for the sales team of the company’s local and external branches was held by the end of last year at the headquarters of the GulfParts Distribution Co in Dubai’s Jebel Ali Free Zone to discuss the 2008 results and the 2009 work plan upon the directives of the Chairman His Excellency Sheikh Bandar Bin Ibrahim Alkhorayef and director- general Hamad Al-Kaltham to be compatible with the future vision and able to meet the challenges of the market.

Manager of the sales department Saleh Awwad explained the 2009 plan includes distribution of new products, expansion into new markets and opening new branches in the UAE and other countries.

Alkhorayef Industries Co’s head of the board of managers chairman Eng. Mohammed Bin Abdullah Alkhorayef appointed Abdullah Bin Ibrahim Alkhorayef deputy director-general of the Equipment Systems Division in addition to his current duties.

The Commerce and Industry Ministry agreed to modify the name of Alkhorayef Maintenance and Operations Co to Alkhorayef Water and Energy Technology. Accordingly, the registrant’s name was modified.

Al Deayea Ambassador of CASTROL

Workshop Discusses 2009 Plan

Abdullah Alkhorayef Appointed Deputy Director General of Equipment Systems

Alkhorayef Maintenance &

Operation’s Name Modified

Eight Alkhorayef employees become members of the Arab Institute of Operation and Maintenance

Eight employees from the Al Khorayef Maintenance and Operation Co have recently become members of the Arab Operation and Maintenance Institute after taking part in the International Operation and Maintenance Conference in the Arab Countries (OMAINTEC7) held under the patronage of Crown Prince H.H Sultan bin Abdulaziz Al Saud. They received membership certificates from the training manager of Alkhorayef Group Saleh Al-Shammari.

The members are: Sheikh Eng. Mohammed

Abdullah Al-Khorayef, Sheikh Bandar Ibrahim Al-Khorayef, Eng. Saad Al-Samari, Eng. Nabil Al-Qawasmi, Eng. Mohammed Al-Shaf’i, Bandar Hussein Al-Fifi, Eng. Ahmed Saleem and Eng. Atef Abu Al-Rub.

The conference organizers invited the Alkhorayef Group to take part in the secret ballot of the institute’s elections and urged it to participate in the 8th International Operation and Maintenance Conference to be held in Beirut on June 6-9, 2009.

Alkhorayef Petroleum Company APC-Kuwait achieved a one-million-kilometer drive without lost time injury and received an appreciation letter from the Kuwait Oil Company, said branch’s safety Eng Haji Mohsin Ali. On this occasion, a safety award ceremony of the heavy oil project was held in the Lower Fars Pilot Plant in north Kuwait. Also Best Driver of the Month Award was distributed in the ceremony.

1 Million km Drive Without Lost Time Injury

Chairman of Alkhorayef Industries Company AIC Eng. Mohammed Bin Abdullah Alkhorayef and Eng. Fayez Khlayfat visited Sudan recently and inspected all the AIC projects there. Alkhorayef called upon the employees to spare no effort to achieve the company’s development plans in Sudan and carry on their duties to the best of their abilities that is compatible with the reputation of the company.

Alkhorayef Inspects Projects in Sudan

Page 7: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

Issue (39) 1430 - 20098 9Issue (39) 1430 - 2009

An Outing to Derab Farm

The Human Resource Department of Al-Nakhil Paper Industries Co and the Trans Orient Modern Machinery Co organized an outing for the employees of the two companies and their families to Alkhorayef Farm, known as Derab Farm, where they spent a wonderful time. His Excellency Sheikh Bandar Ibrahim Alkhorayef accompanied them.

News

Attempts to DestroyCastrol’s ReputationDear Customer,There are rumors about poor quality of Castrol oils circulating

through the internet and by word of mouth. We did a preliminary investigation and found this originated from a blog site. We tried to trace the originator of the message to understand the nature of his complaint but reached a dead end.

Hence, we are unable to identify the true cause of the complaint. i.e. whether this is a case of a consumer receiving spurious oil refilled in Castrol packs or a case of malicious intent to destroy Castrol’s reputation.

Castrol is committed to developing, producing and marketing high quality lubricants and we have immense pride in our heritage and reputation.

Castrol is a 100 year old company and is recognized the world over as a leading high quality lubricant’s brand. We are a leader in synthetic technology and oils for advanced applications. We are proud of our OEM partnership alliances with leading automobile brands and we have international agreements with major brands such as Rolls Royce, BMW, Mini, Land Rover, Jaguar, VW, Audi, Ford and Aston Martin to name but a few. We would not have such recommendations if we did not meet the maximum in quality of our oils and we have very strong quality of our oils and we have very strong quality control measures in place ensuring that we sell the exact quality of oil as published in our product literature.

We have taken action to address the present problem through blog sites carrying this discussion and through the press. This week you will see our press campaign encouraging consumers to check if the aluminum foil on Castrol packs is intact before changing the oil at puncture shops. If the foil is intact Castrol will guarantee the quality and performance of the oil in the pack.

We regret any inconvenience or concern this issue may have caused you, and you may rest assured that with Castrol you need never worry about the quality of the oil that you buy.

We thank you for your understanding.

Yours sincerely,For Alkhorayef Lubricants Co. Ltd.

Article

Ian YarwoodGeneral Manager

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Issue (39) 1430 - 200910 11Issue (39) 1430 - 2009

Feature

A call for challengeSheikh Saad called on all Saudi companies to push their

way to success, and overpass the difficulties created by the international financial crisis and at the same time benefit from it by expanding their base of investments in the world, enter new markets and increase their customer-base worldwide. The Export policy and taking Saudi products to global markets is the best example to reinforce the potentials of the Saudi economy in the light of the global economic crisis as the Saudi industry has taken great strides forward and can now strongly and confidently compete in world markets. In the present critical period Saudi products can enter

The current international financial crisis has deeply affected the global economy now witnessed in an unprecedented collapse of international banks and suspension of development programs in many countries worldwide.

Alkhorayef Group Company chairman and member of the Riyadh Chamber of Commerce and Industry’s board of directors Sheikh Saad bin Abdullah Alkhorayef talks about the consequences of this crisis and its effects on the local and international levels.

Taking Products to Global Markets is Best to Reinforce Saudi Economy

Saudi industry has taken great strides forward and can now strongly and confidently compete in world markets

Our early plans and strategies enable us to occupy high place on the international level in the production of electric submersible oil pumps.

global markets and take its share compatible to its quality and Saudi standards that quickly developed in the last few years.

Alkhorayef taking the leadEven before the signs of the financial crisis, Alkhorayef Group

started early, our early plans and strategies, enabled the Alkhorayef Petroleum Company, a Group subsidiary, to occupy high place on the international level in the production of electric submersible oil pumps, that are of high quality and dependable, and putting it in a leading place in the production of pumps and gaining the confidence of international companies. This encouraged the Alkhorayef Petroleum Company to increase the production of these electrical oil pumps by more than 150 percent in 2008 to meet increasing international

Confronting world financial crisis with better quality Saad Alkhorayef:

By Saad Abdullah Alkhorayef

Page 9: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

Issue (39) 1430 - 200912 13Issue (39) 1430 - 2009

Feature

that resulted from the sharp drop in oil prices since last August, by creating strategies and urgent plans to enter global markets, benefiting from the decline of US and European companies reeling under the repercussions of the global financial crisis and the oil price falls which sharply dropped by 60 percent, and pushed many oil companies to suspend or delay the execution of projects already planned for, and represent it again to benefit from the lower execution costs.

Saudi companies specialized in the oil industry and extraction techniques can enter the global markets, and to compete with big companies, occupy a significant position in terms of competition and have a share in oil investments around the world.

Motivating achievementsHe added that Alkhorayef Petroleum Company in

currently investing in the Russia Federation, installing electric submersible oil pumps to extract oil through unique techniques, and explore and extract in difficult areas. Alkhorayef Industries Co (AIC) succeeded in

Economic recession is encouraging us to improve the quality of our industries and forcefully enter American and European markets

demand for Saudi pumps. It also adopted the LEAN/TPS management system, the most recent that ensures high performance and raises productivity and resulted in the Group’s supremacy over its competing companies in the United States.

Top qualityAlkhorayef sees the economic recession caused by

the global financial recession is encouraging to improve the quality of our industries and forcefully enter American and European markets and other different international markets as we have been able to enter different international markets and strongly compete with major international companies. And therefore the Alkhorayef Group has become, in addition to its pioneering role in the manufacturing of electric submersible pumps, one of the most important international companies specialized in well pumps, spare parts and sophisticated irrigation systems. Moreover, it played a leading role in manufacturing pumping and distribution systems in Saudi Arabia, produced locally at high quality and able to compete with international manufacturers and has a large share in 41 countries considered as the most competitive in the world.

OpportunityTo confront the repercussions of the world financial

crisis, Saudi companies need to take advantage of the retraction of oil companies’ plans and investments

establishing a network of international relationships and its products received international certificates for their quality and compliance with international measures and standards. The company follows up on the expansion plans in its factories and facilities and is provided with the latest machinery and technologies used in manufacturing large electric submersible oil pumps to meet the increasing demand on its products that are available in the largest and most famous of global markets.

The Alkhorayef Petroleum Company has previously won a contract to design, manufacture and export sophisticated spare parts to the Malaysian Oil Refinery Company, regarding Alkhorayef as one of the few companies in the world that can redesign such types, and manufacture oil refinery units that saves time and raises reliability.

The Company’s spare parts redesigning and manufacturing department has a number of contracts to export spare parts linked to different industries of many other sectors including the water, electricity and oil sectors. It is now redesigning and re-producing a number of other necessary spare parts to several countries and is currently studying the feasibility of expansion in its work process, especially now it has a large human expertise and technologies distinguished on the international level.

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Issue (39) 1430 - 200914 15Issue (39) 1430 - 2009

After completing the infrastructure and putting the other vital projects in place, next comes the important stage of maintenance and operation considered as the backbone for the protection of any facility whether it offers services or production. To discuss these sectors, Al-Jazira Newspaper met with Eng. Badr Al-Mlahi, director-general of Alkhorayef Maintenance, Operations and Contracting Company. His professional life began in 1980 when he was appointed in the Water and Sewage Directorate in Riyadh. He obtained an MA in Health Engineering in 1989 and in 2004 he joined the Alkhorayef Company. In the following interview Mlahi talks about the privatization of the water and sewage sectors, and the future of public national companies in this field in the light of the Ministry’s new standards, challenges as well as other issues.

Following is the full interviewHow did Alkhorayef Maintenance and Operations start and what are the

most important activities and projects?Alkhorayef started its operations in 1985 in Riyadh with contracts to operate

public wells then its projects increased and in 1990 the Alkhorayef Maintenance and Operation Company was established and signed contracts to maintain and operate water desalination and sewage water treatment plants and water and sewage networks in the different areas of the Kingdom.

It is apparent the company is large but what is the actual size of your operations?

The size of the company’s operations in the filed of maintenance, operations and contracting is estimated at SAR1 billion. The number of water and sewage water maintenance and operation projects is 33 with total contracts of SAR404 million and 10 contracting projects with a total of SAR561 million.

Could you detail us on the contracting projects you are developing?As I said, we are developing 10 contracting projects including a sewage water

treatment station on the road to Al-Kharj with a capacity of 100.000m3 per day, projects of sewage water treatment plants in Al-Kharj governorate with a capacity of 30.000m3 and the still-to-be-tendered Unayzah plant with a capacity of 25.000m3 as well as a project to install sewage water networks in a number of districts in Buraidah at a cost of SAR199 million and another to install sewage water networks in Domat Al-Jandal governorate at a cost of SAR89 million.

What is the importance of maintenance?Maintenance helps prolong facilities, ensures its continuity and increases its

The Saudi Kingdom is One of The Highest Countries in Water Waste… Maintenance And Good Networks Reduce Loss

Badr Al-Mlahi to Al-Jazira:

By Hazem Al-SharqawiAl-Jazira Newspaper

Interview

production capacity. Maintenance is the backbone of every facility in the world.

What do you think of the privatization now led by the Water Ministry in the Kingdom?

Privatization is important to turn the management of vital water and sewage water facilities to the private sector, which will improve the services and lower the cost. The Water and Electricity Ministry has been interested in privatization and it started with the privatization of the water sector based on a commercial and not on a traditional- perspective.

What are the preparations Alkhorayef Company is making for the next stage in the Ministry’s direction towards privatization?

Firstly, we have more than 3600 employees and workers who are highly qualified and whose experience is equated with international standards. The company rehabilitates all its employees through following up on everything that is new in the world of maintenance and operation. Moreover, it has established strategic partnerships with large international companies that have expertise in management, operation and maintenance of water and sewage water projects in the world. We have prepared ourselves early to benefit from the projects currently being privatized by the Ministry.

What is your objective in the privatization projects presented by the Water and Electricity Ministry?

We aim for a moderate percentage of the privatized projects whether in water desalination or those related to the water services.

What are the horizons of the Alkhorayef Company?We are looking to have international presence in this

field through the execution of projects in and outside Saudi Arabia.

Do you have statistics on the size of the planned projects in the water and sewage water sectors?

According to a study by the Council of the Chambers of

Commerce and Industry, total investments in all sectors exceeds SAR600 billion, of which the share of the water and sewage water sectors is 25 per cent (SAR150 billion).

What are the challenges the Saudi companies are facing in light of the Ministry’s plans to privatize the water and sewage water sector?

Local companies do not have any choices but to look for foreign partners for the purpose of developing their professional and technical abilities so that they can abide by the new standards the Water Ministry set for the to-be-privatized projects.

Do you think it is necessary to establish alliances with foreign partners?

Yes. We have many choices regarding foreign partners as we want strongly to enter important projects since the foreign partner will provide local companies working in the same field with very important international experience.

There are many maintenance companies in the Kingdom. In your opinion, what is their future be in the light of the new standards being set by the Ministry?

Yes, there are many companies, and I expect some of these to leave this sector. I think the National Water Company should be asked about their future role, although I see their role as being limited to sub-contracting, and only experienced companies who have skilled maintenance and operations staff will survive.

How does maintenance reduce water waste?Maintenance helps directly to reduce water waste

in networks, which reach between 18 and 30 percent in some cities. The decrease of water waste is achieved by good maintenance, renewing crumbling networks and good network design.

What is the internationally-allowed average for water waste in networks?

No more than 10 percent. In countries like Singapore it reaches 5 percent and in Riyadh 20 percent.

What about your projects with the private sector?We have a lot of business with private companies

and the most important is the projects with the King Abdullah Economic City likely to be signed with Emaar for the purpose of managing, operating and maintaining the city’s water desalination plant in collaboration with an international company.

How do you see the current situation of water in Saudi Arabia as international conferences warn that the coming wars will be on water?

I’d like to stress the Kingdom has big opportunities to achieve self-sufficiency in water through two important resources; first, in the south-east of the Kingdom where it rains heavily and we only need to build dams to prevent the water from going into the Red Sea. The second resource is the Al-Jawf area, north of the Kingdom. It has large reserves of top quality groundwater that can be pumped to the middle of the Kingdom easily at a cost lower than that of water desalination. Plus, water in the north is plentiful and renewable and does not require high pumping like other water resources.

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Issue (39) 1430 - 200916 17Issue (39) 1430 - 2009

Society

Al-Jada’an manager of agricultural units’ sales

Head of Alkhorayef Industries Company’s AIC board of directors His Excellency Eng. Mohammed Bin Abdullah Alkhorayef appointed Eng. Fahd Bin Faisal Al-Jada’an manager of the agricultural units’ sales and marketing of the Equipment Systems Department.

Al-Zulfi Water honors Eng. Sami Saud

Project manager of Alkhorayef Maintenance and Operation Company’s Al-Zulfi Governorate’s water networks project Eng. Sami Abdulaziz Saud received an appreciation letter from the Water Department in the governorate for his continuing efforts to complete many works.

Al-Zahrani blessed with baby girl

Mohammed Al-Zahrani from Alkhorayef Industries Company’s AIC computer department in Jeddah has been blessed with a new baby girl. May Allah provide the family with much happiness.

Qahtani has new baby

Mohammed Salman Al-Qahtani from the Saudi Parts Center Company has a new baby boy and named him “Saud”. May Allah, the All Mighty, bless him with happiness.

Abdeljabbar blessed with a baby

Mohammed Abdeljabbar in the marine division in Jeddah has been blessed with a new baby. May Allah make him pious and virtuous.

Congratulations for new baby “Fajr”Editorial supervisor of Alkhorayef Magazine Saleh Mohammed Al-Shamrani has been blessed with new baby girl and named her “Fajr”. May Allah provide the family with happiness.

Colleague Mohammed Abdelwahhab’s son honored

Under the patronage of the governor of Jeddah H.H Prince Mashaal Bin Majed Bin Abdelaziz and in the presence of the Education Department’s Manager Mr Abdullah Bin Ahmed Al-Thaqafi’s top undergraduates of the King Abdulaziz University were awarded late January. Jihad Mohammed Abdelwahhab, whose father is working in the marine division of Alkhorayef Industries Company AIC in Jeddah, was among the students. Many congratulations.

Al-Mfarrej assigned HR manager

Head of Alkhorayef Industries Company’s board of directors His Excellency Eng. Mohammed Bin Abdullah Alkhorayef assigned Ahmed Ibraheem Al-Mferrej as manager of the Human Resources Department.

Al-Awadhi in the marriage circle

Colleague Fares Ameen Al-Awadhi from the management department of Al-Nakhil Paper Industries has joined the marriage circle…congratulations from all employees.

Madani blessed with a baby boy

Manager of maintenance in the marine division in Jeddah Mahmoud Samir Al-Madani has been blessed with a new baby boy named “Samir”. May Allah make him pious and virtuous.

Masaweh blessed with a new baby girl

Nabil Masaweh from the marine division in Jeddah has been blessed a new baby girl. May Allah shower her with happiness.

Corporate Identity More Than a Slogan

Companies around the world undergo changes and even transformations after they have been established. The Alkhorayef Group is no different and has made lots of strategic changes in the last few years including in organizational structure, integration, creating opportunities and new industries. Our plan to be listed in the Saudi Stock Market is the cornerstone in the history of our Group. For these reasons we’ve started evaluating our corporate identity through setting a promotion strategy for our brands.

The promotion strategy of our trademarks is based on introducing our company, the nature of our work and what we represent in the business world; we reached our strategy after a series of meetings with the Group’s board of directors. This strategy represents a promise we made to our shareholders and other concerned parties to achieve what everyone is looking for in the brand. For a promise to be kept, it should be solid all time.

We aim to reinforce the message of our trademarks in all communication tools starting with phone calls, meetings and emails. All future communications and public relations’ activities should focus on the trademark strategy.

A motivating force behind the success of any trademark lies in their owners and concerned parties to encourage and push it forward and make sure there is a difference between its brand and trade marks and that of its competitors. It should be about taking care of every thing starting with the importance and value of the brand and ending with its quality. This force is the spring board to all our future steps and activities. When we adopt the strategy proposal, we should think of those that are concerned and the shareholders of the Alkhorayef Group.

We realize our driving force is achieving success with our partners, a strong message representing the group’s restless efforts to establish successful and long-term alliances the Group and its partners benefit from.

Regarding the Group shareholders, it is certain their investments would succeed in the long run. But the question is: Why do we seek partnership? Answer: The Alkhorayef Group builds partnerships with all of its employees, customers and subsidiaries. Partnerships are the basis that establishes the style of work and building of many successful ventures.

The trademark that is launched in the market is like a person you meet for the first time. Your impressions depend on many things like his clothing, behavior and your previous knowledge of him and his way of talk. And so our brands have an independent “identity” exactly as people are different in theirs.

We will express our brand’s identity through different activities including phone calls or advertisements. It is our duty to present our distinguished identity as “Alkhorayef Group”.

The corporations that have successful brands are aware the establishment of their trademarks and management could very well help achieve their strategic objectives. The management of successful brand depends on effort and enthusiasm through its introduction to others, its management and its presence reinforced. That effort should be made starting from the top of the corporation to its base. The brand should be explained to all concerned parties so that they all feel they are responsible of it.

With complimentsAlkhorayef Corporate Identity Team

Page 12: Quarterly Issue of Alkhorayef Group of Companies Issue 39 ...C3%83%C6%92%C3%86%E2%80%99%C3%83%E2%80…slogan to represent the identity and strategy of the group that will soon be applied

Issue (39) 1430 - 200918

Society

Condolences to Bawazir

Alkhorayef Group’s Human Resources Department offers condolences to Ahmed Saeed Bawazir who works in the Equipment Systems Department of Alkhorayef Industries Company AIC for the death of his mother who passed away on Monday March 9, 2009. May her soul rest in peace and “To Allah we belong and to Him we return”.

Graduation

Alkhorayef Lubricants Co congratulates marketing supervisor Abdeljalaj Al-Qahtani who was awarded a BA degree in Marketing from King Abdulaziz University.

Qahtani awarded B.A.

Mohammed Salman Al-Qahtani from the Saudi Parts Center Company has graduated with B.A in Marketing from the Economy and Management College.

Madwi receives appreciation letter

Colleague Mohammed Madwi Abdel Ghani from the Alkhorayef Maintenance and Operation Co received an appreciation letter from the director of the Sports Complex in Bareedah for his efforts in cleaning the sewage networks of the complex, and resulted in improving the facilities.

Al-Ghamedi attends training course, Al-Shehah awarded English diploma

Colleague Abdel Rahman Al-Ghamedi, employee in the Equipment Systems Department of Alkhorayef Co attended a training course in business administration. Colleague Abdallah Al-Shehah attained a diploma in English. This is the result of the company’s concern to develop the skills and abilities of its employees and offer opportunities to them to achieve progress in their work and develop their performance in the future.

Information Systems Department bids farewell to colleague Bandar Al-Fifi

The Equipment Systems Department held a farewell party to colleague Engineer Bandar Hassan Al-Fifi who is leaving to the US to complete his Master degree.

Abdel Rahman Al-Ghamedi Abdallah Al-Shehah