Alwasail Industrial expands market share amid rising demand for HDPE pipes

In an interview with Argaam, Almushekih said the growth has started to reflect in the company’s performance in recent months. “We do not focus on providing short-term forecasts for the following quarter, but rather on a long-term strategy aimed at serving the sector and strengthening its sustainability in the market,” he added.

The CEO also said current demand for the company’s products is largely driven by the government sector, noting that polyethylene pipes are used in numerous infrastructure and water projects.

He highlighted government support for local products and domestic manufacturers, as well as the expanding use of HDPE pipes as a strategic alternative across several sectors, including irrigation, telecommunications and sewage.

He said key projects generating demand for polyethylene pipes include the Green Riyadh project, National Water Company (NWC) projects, Public Investment Fund (PIF) projects, and the Sports Boulevard.

He confirmed that demand for the product continues to rise across these major projects.

Almushekih said the company’s Q2 2026 results were positive, noting that the increase in net profit reflects the success of a plan the company began implementing some time ago, as well as its ability to adapt to current conditions.

He noted that the company is focused on controlling and continuously monitoring operating costs, while adopting a more conservative and prudent sales policy with regard to credit and focusing on improving operational efficiency.

He also added that these measures have strengthened the company’s ability to maintain and improve profitability under various economic conditions.

Regarding the 33% decline in sales during Q2 2026, Almushekih said the decrease was mainly attributable to the impact of geopolitical conditions on various segments, which indirectly affected the pace of implementation of some projects.

He noted that the postponement of certain government and private-sector projects weighed on quarterly sales but did not affect demand for the company’s products, stressing that demand remains strong and that greater opportunities are available.

He expects sales to gradually return to growth as conditions improve and stabilize.

He also noted that it may take some time for the impact of the recovery to become evident.

Regarding geopolitical conditions, he said the company had taken proactive measures to secure production and raw materials, while continuously monitoring global and local markets and focusing on procurement prices.

These measures helped ensure uninterrupted supplies, while also controlling costs and improving profitability during the second quarter.

Regarding raw material price expectations, the CEO said the company prefers price stability and does not base its strategy on speculation or forecasts of price movements, given the difficulty of making decisions based on such trends.

He said the company’s core approach is to manage inventory and procurement strategically and flexibly, enabling it to respond to market changes and maintain margins while keeping costs as low as possible.

He noted that Alwasail Industrial sources its raw materials locally, providing greater supply stability.

Local petrochemical companies cover a significant portion of the company’s requirements, eliminating the need to rely on imports.

He stressed that this provides the company with a strategic advantage while also supporting the local content sector in Saudi Arabia.

According to data available with Argaam, Alwasail Industrial’s net profit rose 131% to SAR 8.23 million in Q2 2026, up from SAR 3.57 million a year earlier.