$37MProject in Jubail seals Wescosa market strategy The leading ISO9001-certified manufacturer of electrical distribution products in Saudi Arabia, Wescosa has validated its position as a leading provider of technical services by completing a major project for the Royal Commission for Jubail and Yanbu.
This project was valued at more than $6.4 million, and provides a direct indication of Wescosa's marketing strategy. The project involved the upgrading of the seawater cooling system in Jubail Industrial City, with Wescosa supplying power transformers, low voltage and medium voltage switchgear, motor control centres, low voltage and medium voltage busducts, power cables, lighting distribution and annunciator panels, protection relays and accessories. The installation and commissioning for the project was also done by Wescosa.
The current backlog of orders for Wescosa is more than $37 million for the period ending the first quarter of its fiscal year 2000-2001. This backlog includes the prestigious Hawiyah project for Saudi Aramco, where Wescosa is providing electrical equipment through turnkey contractors JGC of Japan for the gas processing facilities, Italy's Technip for the utilities and sulphur recovery facilities and through Techint of Argentina for the inlets and auxilliary facilities part. Under various subcontractors, Wescosa is to supply low voltage switchgear, motor control centres, busducts and relays. The project also involves preparation of coordination studies for relays and for commissioning and installation of the electrical equipment supplied by Wescosa.
Wescosa is also supplying several smaller orders for the same project from different local Saudi Aramco contractors for the supply of MCCs, switchgear, power transformers, busducts, cable trays and accessories.
The performance of these orders for Hawiyah, a critical Saudi Aramco programme, has strict delivery requirements. Wescosa is meeting the target dates with the delivery for the major part of equipment already completed, and the balance is expected to be delivered as per the required schedule.
Wescosa is vigorously pursuing orders for Saudi Aramco's Berri and Haradh Gas plants, for which it is bidding through overseas turnkey contractors. The scope of equipment for these projects will be similar to that of the Hawiyah project.
Success in these negotiations will further enhance Wescosa's rapid expansion of its customer base of local and overseas turnkey project contractors. The business development strategy for Wescosa is continuing by targeting exports to GCC and other Middle East countries. Wescosa will work jointly with a sister company, Al Quraishi Electric Services (AQESA) on expansion efforts throughout the Middle East.
Wescosa is organised into five product lines: power transformers and substations; switchboards, panelboards, switchgear, switchracks and busducts; cable support equipment; fused cutouts; and power capacitors. The company will continue its aggressive expansion programme by entering other business segments. Its adherence to quality programmes required by its ISO9001 certificate will assure success in any new programmes, according to the company.
Wescosa's Saudisation policy, and its goals, is outstanding for a private company, with the current year goal at 30 per cent. A special section has been formed which handles the induction of Saudis into manufacturing, engineering and administration sections of the company. In addition, Wescosa trains technical students from various technical institutes as summer trainees during their summer vacations, as part of its outreach programme for Saudi nationals.
Keeping pace with the developments in industry and infrastructure in the power generation field, the demand for electrical distribution products will increase, which in turn will pave the way for better business prospects for Wescosa. With a successful investment strategy, which has given scope for a competitive product range, Wescosa is set to meet the changing demands of the market and be a major competitor for all top players in the industry.
