Al Yusr Industrial Contracting Company (AYTB), which recently celebrated its 40th anniversary with a grand function that was hosted by its Board of Directors and attended by some of the top dignitaries in the industrial world including Saudi Aramco, Sabic, Royal Commission, Samsung Engineering and other local and international corporates along with senior government representatives, has very aggressive expansion plans in place for the coming years.

Always adaptive to Saudi needs and market changes in a very positive way, the company, a leading provider of a diversified range of specialist engineering, contracting and logistical support services, is planning to expand its manufacturing capabilities by increasing its fabrication facilities in order to produce oil and gas skids and modular structures for the energy sector, both upstream and downstream

At the impressive event, OGN caught up with AYTB spokesman, Hossam Hamdy, Corporate Marketing & Communications Manager, who organised the show, and discussed with him the company’s future plans, it achievements and how it holds it head high in Saudi Arabia’s competitive landscape.

Celebrations marking AYTB’s four-decade-long journey as a top industry provider

Hamdy says AYTB’s expansion plans include setting up a large manufacturing facility, which is under development in Ras Al Khair, where Saudi Arabia is building a huge oil and gas industrial city and erecting land and offshore rigs besides supporting the already existing aluminium and steel production plants in the area. Also, AYTB is expanding its offices and fabrication facility in the Western Region industrial capital of Yanbu to be ready for Saudi Arabia’s planned development in that area with the vision to serve the Neom, Rabigh and Jeddah development plans. The company is building on its strength and growing in Jubail Industrial City and a new fabrication facility is under construction to cope with the growing business needs, he says

In fact, AYTB had recognised the Saudi Dream 40 years ago when the Royal Commission for Jubail and Yanbu was set up with a vision to build a huge petrochemical industry to catapult Saudi Arabia to the level of the major industrial countries for the downstream oil and gas business, he notes.

Giving a fillip to that, a few years ago Saudi Arabia launched Vision 2030, aiming to put the kingdom on the frontline of developed countries, not only in industrial development but also in education, tourism, entertainment and artificial intelligence revolution. AYTB has followed that path closely and set its strategy in tune with the new Saudi vision and dream, he explains.

Snapshots of moments to cherish

To a question on the achievements that AYTB is really proud of, Hamdy says AYTB has grown from a small company of a couple of hundred employees to a major multi-disciplinary group hosting over 6,000 of workforce. 'This is indeed a great success. While many companies failed to survive or grow during the market challenges of those many years when the world economy faced umpteen crises and instabilities, AYTB stood firm and evolved into a fully diversified group with divisions including Construction, Manufacturing and Fabrication, Operation and Maintenance, Industrial Cleaning Services and Housing and Catering.

Amongst its divisions, the Industrial Services division is one with great opportunity to grow. Saudi Arabia’s plans to build more petrochemical complexes and add major production refineries and plants, open the doors for more job opportunities in industrial cleaning services and plant turnarounds.

Also, AYTB’s Housing and Catering division is seeking a bigger chunk of the already huge market. An improved strategy is in place to fit market needs, as more projects to come in the new industrial areas. Besides, AYTB’s Catering division is structured to serve the oil and gas drilling sector even in remote areas, says Hamdy.

Asked if the company was planning more joint ventures, Hamdy says JVs have been an integral part of AYTB’s strategy in its long march to success. AYTB has made through its journey several JVs like the one with Lamprell; Maritime Industrial Serves Saudi Arabia (MISA), a fabrication giant for pressure vessels; also the one with KBR for major outsourced maintenance contracts that has been serving AYTB’s clients such as Satorp and now Sadara; the JV with Dar Alriyad; MASADER HR company hosting now over 5,000 employees and securing visas for all types of services in the kingdom. Adding to that AYTB has a number of MoUs with big international companies from major EPCs such as TechnipFMC and Hyundai E&C to big downstream manufacturers of high-performance cast, forging and boiler making components like Manoire Industries.

To a question on what is unique about AYTB that it is able to win and retain clients in a competitive environment, Hamdy reveals that the company has always been unrivalled among other big contractors with its safety records and multiple awards for millions of safe man hours. This is because of one of the major assets of the company -- its experienced and dedicated employees who make sure that any assigned job is done in a distinguished and safe manner.

Also AYTB is recognised for its safety records and its capability to fit market needs and implement new government policies. The company now is hiring many Saudi males and females and introducing new training programmes to prepare the new Saudi generation for the challenges ahead.

'Being known in the market for our innovative solutions and responsiveness is a status we appreciate and value the most,' says Hamdy. Talking about opportunities and challenges for 2019, he says year 2019 has not been easy on anyone following the tough years of the oil prices downturn, with so many competitors in the market and the low profit margins for most projects owing to a slowdown in the world economy. Yet by putting strategies in place towards cost optimisation and business improvement initiatives nothing is impossible to achieve, he asserts.

To a query on oil price volatility and the effect it has on the company, he says AYTB is designed to survive and minimally be affected if ever by the fluctuations in oil prices. AYTB mostly serves the downstream sector, which has more stability facing the vagaries of oil prices worldwide.