Nabil Alamir, CEO of United Wires Factories Co. (Aslak), said the planned capital cut does not reflect contraction, stressing that there is no conflict between the target reduction and expansions.
Expansion is a main goal of Aslak, which eyes acquisition of existing companies operating in various activities to boost its returns, Alamir told Argaam in a phone call.
The acquisition of UAE-based A-1 Fence DMCC is currently in final stages, as Aslak is finalizing the paperwork required for the process.
Aslak’s financial results in the last two years were better than earlier periods. This, in turn, evidences the efficient operations and tangible growth in the company’s segments, Alamir added.
The company’s capital investments this year surpassed SAR 30 million. These investments were allocated for upgrading production lines, ramping up capacity as well as digitization and automation programs, which have already stared. In addition, they were directed to new facilities and a land plot in Jeddah 3rd Industrial City to expand the company’s industrial activity.
Aslak has a leading position in certain products. Some capital investments aim to boost productivity between 25% and 30% for some products.
Aslak focuses on technological solutions for some products. It also works on some initiatives launched by the Ministry of Industry and NIDLP. It also works on other industry automation programs, Alamir added, indicating that some production lines need automation to be more efficient and increase production.
In the building and construction sectors, Aslak’s products are evaluated in terms of meeting demand amid the changes witnessed by the sector, updated regulations and the material changes in the housing sector in line with Vision 2030.
Aslak operates in line with a strategy that focuses on the best products that meet future market needs, he concluded.
