Saudi- Best in class: Bahra Cables setting industry standards

(MENAFN- Arab News) Jeddah-Bahra Cables Company has nurtured the idea of opening women-only factories in the future to basically handle low voltage switchgear assemblies that can be operated exclusively by Saudi women. Women's employment is foremost in companies' mind.Bahra Cables' total investment would reach SR1 billion after completion of various ongoing projects.Bahra Cables currently employs 1300 people in all of its factories a majority of them Saudis. 25 percent of the Saudis are from Bahra a rapidly growing industrial area near Jeddah.'We have discovered that Bahra enjoys an excellent location for industrial activities. It is close to major highways and has enough power sources to help industries and a clean environment compared to other industrial states' Talal K. Idriss chief executive officer of Bahra Cables said.'Even though cable manufacturing is a difficult business to Saudize as it requires 24-hour operation we have managed to hire Saudis who are entrusted with complete production responsibilities' Idriss said. This is an ongoing involvement and we plan to increase Saudization keeping an eye on future requirements.Bahra Cables in Bahra (Muhafiza) is a growing city with people eager to work. 'We have very good relationship with the community and choosing our employees from Bahra is our first priority.' We have discovered that they genuinely want to work are serious in their work and honest in all their dealings' Idriss said.Giving an overview of the company Idriss said Bahra Cables is one of the world's top five entities established in 2008to serve the Saudi and other GCC markets. The company is headquartered at CPC Industrial Park 25 km from Jeddah.Bahra Cables' plant for electrical cables occupies an area of 500000 sqm covering the manufacturing designing and storage facilities. The company is specialized in the production and distribution of electrical cables and aims to become the main developer for low medium and high voltage cables in Saudi Arabia. The company has built advanced production lines to supply high quality products with the highest standards./sites/default/files/userimages/20/Bahra%20cable2.jpg'We started cable production in 2009 with 20000 tons in copper. Today our capacity is about 6 times more 110000 tons in copper and about 30000 tons in aluminum which puts Bahra Cables in the Top 100 companies worldwide in cable manufacturing' Idriss said and emphasized that Bahra Cables is in the top two in Saudi Arabia and No. 3 in the Middle East.Bahra Cables has been active in various sectors. It has developed specialty cables which are fire resistant cables.Bahra Cables has won a contract to produce medium voltage cables with high specifications against fire for the Holy Mosque in Makkah continues to supply most of the cables for the Holy Haram and is active in extension of the projects to cover Madinah's needs.It has entered production in aluminum as well as many other specific items pertaining to technical cables that are on demand in the market.On the export side Bahra Cables was able to produce for and sell to most of the MENA projects. Some of the contracts are for African countries like Nigeria and four major contracts are in Iraq. It is now waiting for the political issues to settle so we can start supplying Idriss added.On the approval side it has gained lot of major international approvals in testing facilities which is unique in the Kingdom.Bahra Cables signed memorandums of understanding (MoUs) with two French companies AREVA and EDF for the Saudi nuclear energy program of King Abdullah City for Atomic and Renewable energy (K.A.CARE).This is a case where they surveyed all of the cable manufacturers and finally chose Bahra Cables 'specifically to partner with on this prestigious and highly technical program to supply to all the atomic and nuclear facilities operating in across the Kingdom in the near future.'The MoUs ascertain the world-class of Bahra Cables products which meet the needs and requirements of strategic gigantic projects Idriss added.The company renews its commitment to offering the best in the cable industry across the Kingdom and worldwide as well by using its products in the most important projects across Saudi Arabia and the region. In terms of the product range we supply it is the most diverse avenue in general manufacture and consists of a range of various products he said.Bahra Cables was also invited recently to attend the world nuclear conference in Paris to solidify the relationship with EDF and AREVA; Idriss said and pointed out that Bahra Cables' products meet all international standards as has always done since its inception.Bahra Cables produces various kinds of cables including high medium and low voltage cables which arefire resistant and do not emit smoke or toxic and suffocating gases in case of electriccircuit shortage.The company got a number of accreditation certificates such as KEMA IPH SASO LPCB CSA BASEC and others for its production of power cables.Bahra Cables also embarked on the largest testing facility that is being built now. The 7000 sqm testing facility is the largest in the Middle East and the most modern which will be put into operation early next year.This will be a state-of-the-art facility for cables of all sizes and it is truly one of a kind Idriss said.Each factory has its own testing facilities but this one is of a particular size magnitudeand equipment that it is unique in that sense. 'We will test our products but we will be open to test others' products as well; we will be certified to test for others.'The strategy of Bahra Cables is not to rely on cables alone but to extend to other electrical material and products. We have already built a steel pipe factory in Rabigh with additional partners. It is fully operational and it already has around 45 percent of the local market for steel pipes for the electrical industry' Idriss stated.Bahra Cables also has built a PVC pipe facility which has been in operation for the last 6 months and is progressing very well. 'We will fully commissiona new factory in Jeddah for busbars and it will be operational within two months. We will also be building two new factories one for dry-type transformers and the other for busway' Idriss said.These two projects are being done jointly with Legrand of France. This joint venture factory will be ready in 2015. This will be the only factory in the Kingdom specializing in this type of equipment and being built 100 percent in the Kingdom he added.Bahra Cables is involved in many factories that are well connected in providing electricity or control of electricity throughout the Kingdom.Bahra Cables has also entered the switchgear business by acquiring specialized Saudi companies.As for business expansion beyond the Kingdom Bahra Cables is looking at Africa as the next place to expand. 'We are looking mainly at Egypt Morocco and Nigeria as the first markets to develop.'Asked about exports Idriss said: 'Export remains a secondary market for Bahra Cables 5 percent to 10 percent of the total sales.'He explained that the cable industry in Saudi Arabia is currently undergoing a major expansion to meet the growing demand for the implementation of major projects as well as to meet the needs of the construction sector in general.He noted that national companies are capable of meeting about 90 percent of the Kingdom's needs for cables which areproduced at the highest level and in accordance with local and international standards. 'About 90 percent of Bahra Cablesproductsare sold in the local market.'Bahra Cables has been involved in many projects across the country. 'The main client remains Saudi Electricity Company (SEC). We also have orders from Saudi Aramco and oil and gas companies as well as those in Yanbu and Jubail.'About the company's finance requirements Idriss said Bahra Cables has reached an agreement with Standard Chartered an international bank to finance $265 million.Building on the confidence and recognition the Bahra Advanced Cable Manufacturing Co. Ltd. had with the local banks the company added a new entry to its record of achievements by obtaining the confidence and recognition of international banks where the company got Islamic financing for the sum of $265 million from Standard Chartered. Of this amount $200 million was for short-term Islamic structured financing solution for funding its inventory and sales and $65 million as a 5-year long-term loanto finance the company's expansions.The first facility is a short-term structured Islamic financing to finance inventory and sales (warehouse and export invoice structured finance) to finance the working capital of Bahra Cables Company and it isthe first of its kind in Saudi Arabia he said.Bahra Cables signed a new contract for SR1.3 billion for the supply of low and medium voltage cables for its projects in the coming twelve months.This contract comeswithin various agreements signed by SEC with national factories worth SR6.3 billion for the supply and delivery of medium voltage cables 13.8 to 36 kV and low voltage cables 400 v within 12 calendar months to enhance its cable networks Kingdom wide.Bahra Cables also had two new contracts from SEC for SR580 million earlier this year.According to Idriss Bahra Cables won its place in the Top 50 brands in Saudi Arabia from Construction Week and one of the fastest 100 growing companies in Saudi Arabia from Saudi Arabian General Investment Authority (SAGIA).Bahra Cables is the first cable manufacturer in Saudi to get ISO 14001: 2004 and OHSAS 18001:2007 Idriss said adding that the company participated in 13 exhibitions in 2013.