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Metals Industries

 

 

 

 

 

 

 

 

 

 

Investment Opportunities in Metals Industries

 

bulletAir Filters
bulletCooking Stoves and Domestic Electrical Heating Stoves
bulletFabrication
bulletFlat Gaskets
bulletGalvanized Rebars
bulletGeneral Purpose Machine Shop
bulletHinges
bulletIndustrial Fasteners
bulletIndustrial Usages Metal Tanks and Metal Barrels
bulletInstruments
bulletJoinery and Furniture Accessories
bulletMetals Galvanization Plant
bulletMini-steel Plant for Long Rolled Products
bulletO-Ring
bulletPipe Fittings
bulletPipe Flanges
bulletSheet Iron Compression and Cutting
bulletSpiral Wound Gaskets
bulletStainless Steel Sinks
bulletSteam Traps
bulletSteel Cans for Food, Juice, Oil, Paints
bulletSteel Couplers Production
bulletSteel Drums
bulletSteel Flats Casts Production Project
bulletSteel Flats Painting
bulletSteel Foundry
bulletSteel Hangers, Metal Hollowed-Out Doors, Stainless Steel Doors & Windows, Ready Made Houses
bulletSteel Mineral Molds
bulletSteel Panels Making Unit
bulletSteel Plastic Coating Project
bulletTitanium Tubes
bulletValves (gate, butterfly)
bulletValves (globe bull, check)
bulletWindow Mesh

 

Air Filters

Description  
Capacity 50,000 units/year
Investment Capital SR 3,813,000
Internal Rate of Return (IRR) 21.4%
Capital Recovery Period 5 years
Sales Revenues SR 9,500,000

Source: Saudi Basic Industries Corporation

Cooking Stoves and Domestic Electrical Heating Source

Manufacturing Method:  Cutting and forming raw panels, then coating assembling and testing

Description  
Capacity 15,000 cooking stove units/year
15,000 electrical heating stoves/year
Invested Capital SR 8.8 million
Return on Invested Capital 35%
Capital Recovery Period 4 years
Annual Sales SR 14.5 million

Funding:   25 % self-funding
                  25 % commercial loans
                  50 % government loan 

Source: Saudi Basic Industries Corporation

Fabrication

Products:  Light and medium weight fabrications

Description  
Capacity 100 t/year
Investment SR 5,080,000
Internal Rate of Return (IRR)   24%
Capital Recovery Period 4 years
Sales Revenues SR 6,200,000

Source: Saudi Basic Industries Corporation

Flat Gaskets

Description  
Capacity 30,000 units/year
Invested Capital SR 2,413,000
Internal Rate of Return (IRR)   20.3%
Capital Recovery Period 6 years
Sales Revenues SR 2,500,000

Source: Saudi Basic Industries Corporation

Galvanized Rebars

Production Capacity: 40,000 tons/year

Project Costs:

Description SR
Installed Equipment 26,690,000
Civil/Building 1,540,000
Pre-production costs 4,190,000
Working capital 10,930,000
Total Investment (excluding land) 43,350,000

Financial Indices:

Description  
Operating Profit (Year 5) SR 13,380,000
Return on Investment 35-39%

Source: Gulf Organization for Industrial Consulting

General Purpose Machine Shop

Description  
Investment SR 42,060,000
Internal Rate of Return (IRR) 14.9%
Capital Recovery Period 7 years
Sales Revenues SR 15,060,000

Source: Saudi Basic Industries Corporation

Hinges

Manufacturing Method:  Cutting and processing steel panels

Description  
Capacity 1,000 mt/y
Invested Costs SR 10 million
Return on Invested Capital 1st Alternative:  36%
2nd Alternative:  68 %
Capital Recovery Period 1st Alternative:  5.4 years
2nd Alternative: 5.6 years
Annual Sales SR 13.1 million

Funding:   1st Alternative:  50 % self-funding
                                          50 % government loan

                 2nd Alternative:  25 % self-funding
                                           25 % commercial loan
                                           50 % government loan         

Source: Saudi Basic Industries Corporation

Industrial Fasteners

Products:  bolts, nails made of high and low tension steel and iron alloys

Description  
Invested Capital SR 25,373,000
Capacity 1,000 tons/year
Return on Invested Capital 18.8%
Capital Recovery Period 6 years
Annual Sales SR 10,600,00

Source: Saudi Basic Industries Corporation

Industrial Usages Metal Tanks and Metal Barrels

Manufacturing Method:  Cutting and forming the sheet iron panels, assembling and painting

Description  
Capacity 1,000 tons metal tanks/y
50,000 metal barrels/y
Invested Capital SR 6.9 million
Return on Invested Capital 24 %
Capital Recovery Period 4 years
Annual Sales SR 10 million

Funding:    25 % self-funding
                   25 % commercial loans
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Instruments

Description  
Capacity 250 reparation, renewal, and calibration services/year
Invested Capital SR 1,916,000
Internal Rate of Return (IRR) 22 %
Capital Recovery Period 5 years
Sales Revenues SR 1,775,000

Source: Saudi Basic Industries Corporation

Joinery and Furniture Accessories

Manufacturing Method:  Cutting compression and latching -- hinges, keys, angles and decoration

Description  
Capacity 953 mt/y
Invested Capital SR 6 million
Return on Invested Capital 22 %
Capital Recovery Period 4.2 years
Annual Sales SR 7.9 million

Funding:    50 % self-funding
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Metals Galvanization Plant

Manufacturing Method:  Hot dip galvanization

Description  
Capacity 6,000 mt/y
Invested Capital SR 10.8 million
Return on Invested Capital 13.8 %
Capital Recovery Period 5.4 years
Annual Sales SR 14.1 million

Funding:    30 % paid capital
                   20 % commercial loans
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Mild Steel, Low Alloy Steel, Stainless Steel, Cast Iron, High Alloy Steel

Production Capacity:

Mild Steel -- 1,500 tons
Low Alloy Steel -- 1,250 tons
Stainless Steel -- 50 tons
Cast Iron -- 100 tons
High Alloy Steel -- 35 tons

Total Investment Required:  $2,747,000

Contact:  Mr. Ali Khalid Hussain Al-Tubaity, Al-Khalid Factory for Welding Electrodes, P.O. Box 3579, Taif, Saudi Arabia  Phone:  966-2-745-1265  Fax:   966-2-745-0284

Source: Saudi Consulting House

Mini-Steel Plant for Long Rolled Products

Production Capacity: 200,000 tons

Total Investment Cost: SR 354 Million ($94 million)

Production Cost: SR 185 Million ($19.33 Million)

Financing Sources:

Description Percent
Equity 25%
Long Term Loan 50%
Short Term Loan 25%

Financial and Economic Indices:

Description SR
Annual Sales Revenue 259,000,000
Gross profit before tax 74,000,000
Rate of return on equity 26%
Pay-back period 3 years

Source: Saudi Consulting House

O-Ring

Description  
Capacity 2,000 sets/year
Investment Capital SR 1,421,000
Internal Rate of Return (IRR) 20.8 %
Capital Recovery Period 6 years
Sales Revenues SR 900,000

Source: Saudi Basic Industries Corporation

Pipe Fittings

Description  
Capacity 350 t/year
Investment SR 15,008,000
Return on Invested Capital (IRR)   31.6%
Capital Recovery Period 4 years
Sales Revenues SR 7,550,000

Source: Saudi Basic Industries Corporation

Pipe Flanges

Description  
Capacity 320 tons/year
Investment SR 3,981,000
Internal Rate of Return (IRR)   17.8%
Capital Recovery Period 6 years
Annual Sales SR 4,070,000

Source: Saudi Basic Industries Corporation

Sheet Iron Compression and Cutting

Manufacturing Method:  Cutting and compression

Description  
Capacity 525 mt/y
Invested Capital SR 7.5 million
Return on Invested Capital 1st Alternative:  36%
2nd Alternative:  73 %
Capital Recovery Period 1st Alternative:  6.9 years
2nd Alternative: 6.6 years
Annual Sales SR 5.58 million

Funding:   1st Alternative:  50 % self-funding
                                          50 % government loan

                 2nd Alternative:  25 % self-funding
                                           25 % commercial loan
                                           50 % government loan         

Source: Saudi Basic Industries Corporation

Spiral Wound Gaskets

Description  
Capacity 43,000 units/yr.
Invested Capital SR 6.279 million
Internal Rate of Return (IRR) 22.9%
Capital Recovery Period 5 years
Annual Sales SR 4.42 million

Source: Saudi Basic Industries Corporation

Stainless Steel Sinks

Production Capacity:

Stainless Steel Sinks -- 2,000 tons

Total Investment Required: $7,800,000

Contact:  Messrs. Al-Madina Industrial Investment Company, Stainless Steel Kitchen Sinks Factory, P.O. Box 5474, Al-Madina Al-Munawara, Saudi Arabia  Phone:   966-4-839-0295  Fax:  966-4-839-1671

Source: Saudi Consulting House

Steam Traps

Description  
Capacity 4,000 units/year
Invested Capital SR 3,610,000
Internal Rate of Return (IRR)   31.4%
Capital Recovery Period 4 years
Sales Revenues SR 2,800,000

Source: Saudi Basic Industries Corporation

Steel Cans for Food, Juice, Oil, Paints

Production Capacity:

Steel Cans for Food & Juice -- 625 m/t
Steel Cans for Oil & Paints -- 125 m/t

Total Investment Required:  $1,600,000

Contact:  Mr. Meshal Menahe Al-Otaibi, Gulf Factory for Cans, P.O. Box 20051, Dammam 31952, Saudi Arabia  Phone:  966-3-895-0987  Fax:   966-3-894-9118

Source: Saudi Consulting House

Steel Couplers Production

Manufacturing Method:  Steel rolls longitudinal splitting

Description  
Capacity 103,000 rolls/y
Invested Capital SR 10 million
Return on Invested Capital 1st Alternative:  27 %
2nd Alternative:  50 %
Capital Recovery Period 1st Alternative:  4.6 years
2nd Alternative: 4.8 years
Annual Sales SR 11 million

Funding:   1st Alternative:  50 % self-funding
                                          50 % government loan

                 2nd Alternative:  25 % self-funding
                                           25 % commercial loan
                                           50 % government loan         

Source: Saudi Basic Industries Corporation

Steel Drums

Production Capacity:

Steel Drums -- 200,000 drums

Total Investment Required: $2,160,000

Contact:  Mr. Al-Khelaifi, Kingdom for Steel Drums Factory, P.O. Box 25427, Riyadh 11466, Saudi Arabia  Phone:  966-1-406-7618  Fax:  966-1-491-0437

Source: Saudi Consulting House

Steel Flats Casts Production Project

Manufacturing Method:  Flat steel cold forming

Description  
Capacity 100,000 mt/y
Invested Capital SR 9.9 million
Return on Invested Capital 24.23 %
Capital Recovery Period 47 months
Annual Sales SR 234 million

Funding:    50 % self-funding
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Steel Flats Painting

Manufacturing Method:  Processing the flats prior to coating, coating, drying and testing

Description  
Capacity 8,000 mt/y
Invested Capital SR 31.6 million
Return on Invested Capital 25.24 %
Annual Sales SR 26 million

Funding:    25 % self-funding
                    25 % commercial loans
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Steel Foundry

Description  
Capacity 1,500 tons/yr.
Invested Capital SR 16.56 million
Internal Rate of Return (IRR) 17%
Annual Sales SR 10.87 million

Source: Saudi Basic Industries Corporation

Steel Hangers, Metal Hollowed-Out Doors, Stainless Steel Doors & Windows, Ready Made Houses

Production Capacity:

Steel Hangars -- 1,400 tons
Metal Hollowed-Out Doors -- 950 tons
Stainless Steel Doors & Windows -- 112.5 tons
Ready Made Houses -- 600 units

Total Investment Required: $1,040,000

Contact:  Mr. Ramzi Adnan Saleh, Steel Building Structures Factory, P.O. Box 22142, Jeddah 21495, Saudi Arabia  Phone:  966-2-621-3798  Fax:   966-2-620-1442

Source: Saudi Consulting House

Steel Mineral Molds

Production Capacity:

Steel Mineral Molds -- 1,100 tons

Total Investment Required:  $2,700,000

Contact:  Mr. Mustafa Saud Mahroos, The Eastern Compound Industry for Mineral Molds, P.O. Box 75, Dammam 31411, Saudi Arabia  Phone:  966-3-833-8880   Fax:  966-3-833-8886

Source: Saudi Consulting House

Steel Panels Making Unit

Manufacturing Method:  Automatic making and cutting into steel panels

Description  
Capacity 135,000 mt/y
Invested Capital SR 87.9 million
Return on Invested Capital 23%
Capital Recovery Period 48 months
Annual Sales SR 169 million

Funding:   50 % government loan
                  50 % self-funding

Source: Saudi Basic Industries Corporation

Steel Plastic Coating Project

Manufacturing Method:  Steel panels epoxy coating

Description  
Capacity 50,000 mt/y
Invested Capital SR 76 million
Return on Invested Capital 29 %
Capital Recovery Period 41 months
Annual Sales SR 150 million

Funding:    50 % self-funding
                   50 % government loan         

Source: Saudi Basic Industries Corporation

Titanium Tubes

Production Capacity: 3,220 tons/year

Project Costs:

Description SR
Installed Equipment 156,870,000
Civil/Building 14,520,000
Pre-production costs 26,550,000
Working capital 78,920,000
Total Investment (excluding land) 276,860,000

Financial Indices:

Description  
Operating Profit (Year 6) SR 84,340,000
Return on Investment 33-37%

Source: Gulf Organization for Industrial Consulting

Exchange Rate: US$1 = SR3.75

Valves (gate, butterfly)

Description  
Capacity 675 tons/yr.
1700 valves/yr.
Investment SR 22,931,000
Internal Rate of Return (IRR) 27.9%
Capital Recovery Period 5 years
Sales Revenues SR 25,150,000

Source: Saudi Basic Industries Corporation

Valves (globe bull, check)

Description  
Capacity 420 tons/yr.
1000-1200valves/yr.
Investment SR 21,700,000
Internal Rate of Return (IRR) 22.5%
Capital Recovery Period 5 years
Sales Revenues SR 15,500,000

Source: Saudi Basic Industries Corporation

Window Mesh

Production Capacity:

Window Mesh (to protect from insects & mosquitoes) -- 1,000 tons/year

Total Investment Required:  $1,800,000

Contact:  Mr. Awad Omar Ali Baghlaf, P.O. Box 18857, Jeddah 21425, Saudi Arabia   Phone:  966-2-642-9113  Fax:  966-2-643-4079

Source: Saudi Consulting House

For more information about these opportunities, contact Saudi-Business-Center@The-Saudi.Net

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