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1Jul, 2015
PGIF set to boost its standing
The company has installed new equipment and recruited additional staff

The company has installed new equipment and recruited additional staff

Through specialisation, production capacity expansion and opening new sales offices in key cities, the company is on track to muster stronger growth in coming years

Pan Gulf Industrial Fabrication (PGIF), currently busy with several high-profile projects, has announced fresh initiatives to spur sales and boost its standing in Saudi Arabia within its areas of specialisation.

The Dammam-based company, a subsidiary of Pan Gulf Industrial Investments Company (PGIIC), is set to become Saudi Aramco’s approved vendor for miscellaneous structural steel and gratings. The company also recently opened two additional sales stations in Jeddah for coverage of the Western Region and in Riyadh for the Central Region.

PGIF has also expanded its workforce by mobilising additional welders and charge hands and has installed new equipment including welding machines and lifting devices.

Its production facilities cover a total area of 22,000 sq m with a main shed having three bays, the biggest allotted for grating and the other two for platforms and handrails.

“Our core business line is grating. In 2014 it constituted around 70 per cent of our revenue, the same figure as in the previous year, which means we’re confident now of having a decent market share in all grating business in Saudi Arabia,” said  PGIF general manager Ahmad Douri.

“Checking out the last few years, 2014 was considered a good one in terms of capacity, which rose rapidly from 600 tonnes a month to 800 tonnes.

Douri: taking strategic steps

Douri: taking strategic steps

“Our product ranger has also widened, so we’re involved in all types of miscellaneous structural steel and steel grating for industrial projects under our scope of work.”

Next in sales was platforms with handrails ranked third as a revenue earner. Together they contributed around 30 per cent of total revenues in 2014 and 2013.

PGIF is undeterred by intense competition in the kingdom. Douri believes the company has a strategy and skills to get the better of it.

“We have to stay down to earth and keep our prices reasonable for winning new orders,” he says. It helps if overheads are kept to the minimum so the low rates offered can still achieve the targeted profitability.

“One of the main reasons people consider us is our quick turnover period. Our workshop loading diagram does not need months as lead time. All newly awarded orders can be sent to fabrication on the spot. We have earned credibility for being most loyal to our customers and their needs regardless of how tight the situation was.

“Since the beginning of 2014 and until this very date, our main achievement has been to speed up production; as you know, the faster you do it, the faster you’re going to be paid.” To facilitate swift production, the company mobilised additional equipment and staff.

The company is focusing this year on EPC contracts since it expects soon to become an Aramco-approved vendor. PGIF is also targeting steel fabricators who cannot fabric ate in-house but still need miscellaneous items such as platforms and gratings to be part of their end products. The third group the company is looking at is steel stockists.

“Our target for sales this year is to overtake the 2014 figure. In revenue terms we are definitely going to raise the bar higher to surpass last year’s performance and set the trend for many coming years,” said Douri.



A PGIF worker at the company’s plant in Dammam

A PGIF worker at the company’s plant in Dammam

The company is currently implementing several vital projects in the kingdom including the PP13 and PP14 power plants in Riyadh for which it is supplying platforms and gratings, the Jazan power plant and the Jazan Refinery (gratings), Waad Al Shamal (gratings and platforms) and Al Fadley (gratings and platforms).

In 2014 the company completed supplies of light structural steel and gratings to Ras Al Khair power plant, gratings to Shuqaiq power plant and Jeddah South power plant , steel platforms to Um Waal-Ma’aden and special steel gratings for the Jeddah International Airport expansion.



PGIF is optimistic of realising strong growth over the next three years, particularly with the introduction of new equipment and additional staff and the opening of two sales offices in Jeddah and Riyadh.

“Those two stations are expected to cover 40 per cent of our revenue and become a solid base in the first six months from now. On top of that, we’re expecting our business to get a boost once we become an approved vendor for Aramco, Kuwait Oil Company, Petroleum Development Oman, Qatar Gas and Abu Dhabi National Oil Company.

“On gaining approvals from those companies, we will have to expand to cover greater volume, which will involve building extra sheds or starting another factory.”

The company is concentrating on the Saudi market  which Douri said was “quite overwhelming”. “But of course,” added the official, “we need to check out other oil and gas entities similar to Saudi Aramco in the GCC region.”

Pan Gulf Industrial Fabrication’s parent outfit Pan Gulf Industrial Investments Company is a conglomerate comprising eight companies that manufacture engineered products and valves in addition to steel fabrication of process equipment, steel structures and custom-made gratings and specialised steel products. Moreover, PGIIC is a major supplier of piping products, fire safety and security products and services and welding solutions. Its various products and services are focused on serving the needs of the oil and gas, refining, petrochemical, power, mining, desalination and other industrial and commercial projects.


Source: http://www.gulfindustryworldwide.com/news/13029_PGIF-set-to-boost-its-standing.html#.VbzaGgJwkxs.facebook