Coatings purchases are expected to increase in the Middle East
The coming years are expected to witness a substantial number of projects in the Middle East for oil and petrochemical majors, activity which is expected to ripple through the construction industry infrastructure of the region, according to a leading coatings company.
Coatings purchases are expected to increase as activity rises, especially in the power, water and hydrocarbon process industries in the next two to three years, says Sigma Paints.
Sigma Paints' Gulf business is directly affected by the price of oil. When the economies are on the upswing and when government/private spending is high, there are a number of large-sized projects. A large percentage of high volume business comes from these projects, but with low prices, said the company.
Sigma's policy has always been to consistently maintain quality and not to compete on price alone, however. This policy helps it maintain a quality-conscious clientele in the long term.
''It is only natural that during a downturn we - like everyone - are also affected to a certain extent. But then, we do not have to face the problems of a typical low quality 'price pusher','' said a company spokesman.
To maintain its competence in the marketplace, Sigma also eliminates non-essential costs without affecting the long-term strength of the organisation to maintain the quality of its products, distribution and services.
Currently Sigma Paints' Middle East responsibility covers Saudi Arabia, Kuwait, Bahrain, UAE, Oman, Qatar, Yemen, Egypt, Iran, Syria, Jordan and Lebanon. Both Iran and Egypt are examples of recent expansions.
In the Gulf market, the coatings scene is dominated by supply to the state owned companies like Saudi Aramco, KOC etc.
''Their specifications do not reflect the state-of-the-art coatings technology. The coatings market in the Gulf is less concerned with the environmental impact or health and safety aspects than the Western markets,'' said the spokesman.
''Price per liter continues to dominate the use and supply negotiations. We could possibly witness a trend towards more environmental awareness in this decade, certainly when the government initiates legislation. In the long run this would benefit buyers, applicators, suppliers and the general public,'' he added.
With this in mind, Sigma Paints, in association with its parent SigmaKalon Group, has recently been introducing environmentally-friendly and hazard-free products, primarily solvent-free and high solids coatings such as:
All products for the marine and protective coatings market segments are developed jointly by Sigma Paints S.A. Ltd. and the SigmaKalon Group, where specific regional requirements and demands are developed into tailor-made products by Group R&D laboratories in Europe.
This assures best use of R&D expertise gathered throughout the SigmaKalon Group, and in addition allows the products developed to be offered to other interested subsidiaries around the world. Product consistency and availability are thus assured from country to country, the company says.
Sigma Paints S A. Ltd. says it is the leading company in the development, production and marketing of decorative paint and marine and protective coatings in the Middle East, with an annual production capacity of 60,000 tonnes and 250 employees.
Established in 1980, with its own production, storage, research and development facilities in Dammam, Saudi Arabia, Sigma Paints says it offers Middle East customers the highest quality paints with paint and application solutions. Sigma's expertise is inherited from its association with Sigma Coatings Holland, which was founded in 1722.
Sigma Paints is part of SigmaKalon, the result of a merger in 1999 between Sigma Coatings and Kalon. The new entity is ranked as the fifth largest paints and coatings manufacturer worldwide. It has a sales turnover of $2 billion and employs 10,000 people in 50 countries.
