Alwasail eyes geographic expansion, capacity growth in next phase: CEO

Abdul Kader Almushekih, CEO of Alwasail Industrial Co.

Alwasail Industrial Co.’s post-listing expansion plans focus on enhancing production-line efficiency, reducing costs, entering new business areas, and expanding geographically within Saudi Arabia and abroad, CEO Abdul Kader Almushekih told Argaam.

The company plans to leverage loans from the Saudi Industrial Development Fund (SIDF) to upgrade and replace existing equipment and complete automation across its production lines.

Almushekih noted that these measures are expected to boost production speed, reduce operating and labor costs, and improve profit margins.

He added that the company is considering launching new production lines, including pipelines used inside residential buildings, describing this as a new segment with several projects currently under review by the investment committee.

Almushekih also said the company, which currently operates in Buraidah, is working to expand its production capacity by adding new manufacturing sites closer to target markets both locally and abroad.

He explained that this strategy stems from the large size of the company’s products and the logistical challenges associated with transporting them over long distances.

Alwasail plans to establish a factory in Jazan to serve the southern region. The project is at a preliminary stage and expected to take clearer shape in the coming period.

Commenting on demand and production prospects, Almushekih said the company is optimistic about the rising demand in the next phase, driven by projects linked to Saudi Vision 2030, particularly infrastructure projects under the Green Riyadh program.

He stressed that the company’s products are used in nearly all infrastructure projects across the Kingdom.

He added that Alwasail is continuing to develop its existing products, introduce new offerings, and pursue new partnerships and markets during this year and next.

Almushekih said the company has achieved average annual production growth of around 10%, expecting a similar or slightly lower impact on profits depending on production costs.

He added that the company has resumed its focus on export-led expansion after a slowdown during the COVID-19 pandemic. Regarding annual investments, he said the company invests approximately SAR 25–50 million per year, partially funded through profits.

The CEO added that Alwasail aims to raise investment levels this year through financing from the SIDF or local banks, noting that the company enjoys strong banking relationships that support expansion, capital increases, or potential acquisitions if needed.

He also expressed expectations of improved market conditions, emphasizing that the company holds a solid market share and is, in his view, the leading player in its field in Saudi Arabia and the Middle East, adding that its reputation extends beyond the Arab region.

On the size of the local market, Almushekih said the company operates across several sectors, including water, wastewater, and telecommunications, estimating the total value of new project market around SAR 1-2 billion.

He added that the company is also involved in gas-sector projects, with its products used in mining-related pipelines and infrastructure works, highlighting Alwasail’s long-standing expertise and extensive operational track record in this area.

Regarding dividend policy, Almushekih said the company had initially planned to distribute dividends following the release of its interim results, but operational commitments led to a postponement until year-end.

He added that the dividend policy will be announced after the annual results are issued and approved, noting the company’s intention to compensate shareholders in the coming period.

According to data available with Argaam, shares of Alwasail began trading on the Main Market (TASI) on Jan. 21, following their transfer from the Nomu-Parallel Market.