market of upvc windows in Saudi arabiaPresentation Transcript
...to PROVIDE information for a prudent investor to come to reasoned investment decision WITH Hammpton... BUSINESS CONCEPT PVC-U FENSTERA window production
Company Background HAMMPTON company has a long-lasting and substantial experience in the construction industry of Central Europe. The company has worked on a variety of projects ranging from PVC-U window production to residential housing reconstrution & recovery projects predominently focused on old window replacement and PVC–U upgrade. Within its engagements HAMMPTON has built long-standing business relationships with major partners in the production of PVC-U windows, most importantly with German company ALUPLAST which has been producing PVC-U profiles for more than 25 years. Aluplast group employs more than 1,400 employees, its production runs in 10 manufacturing plants and its annual consumption amounts to ca. 150,000 tons of PVC, of which more than 1,600 of its customers produce up to 10 million windows a year. Hammpton Limited 17 Bowater Road London SE18 5TF UNITED KINGDOM Statutory representative Ján KONČEK
Project introduction In its operation Hammpton Limited is to rely on its strong ties with European partners and producers, most importantly on Aluplast – a German PVC profile maker renown for its utmost quality as well as Gretsch-Unitas GmbH – German construction fittings makers with long-term experience and technical know-how of German tradition. Hammpton Limited is bringing to Saudi Arabia the best of the German quality in all - technology, safety and design to be combined with state of the art assembly and installation while the final product will meet advanced technological standards required by the European Union. The PVC – U window production process is to be controlled by KLAES software. KLAES is the world's leading company for innovative software solutions in window, door and facade business to offer complete integrated solutions. The software will allow for work flows, information management, product organization and controlling to be flexible and absolutely reliable at the same time Hammpton Limited is to built a PVC-U window assembly plant in Saudi Arabia that is to operate under Hammpton Middle East Ltd. The finished product is to carry a Fenstera brand name, and it is going to be the sole product of the intended production.
presenting at Saudi Build exhibition on 16-19.10.2011
supply of equipment and material
workers and staff recruitment
worker and staff training
IMPLEMENT ATION PHASE (First quartal of 2012 ) - operation launch preparations (set-up and testing) - production launch
Table of contents MARKET INFORMATION TECHNICAL INFORMATION FINANCIAL INFORMATION ADDITIONAL INFORMATION
MARKET information: SAUDI ARABIA ...............Population ....26,131,703 ..........rate of urbanization: 2.2% annual rate of change.............Major cities population: RIYADH (capital) 4.725 million; Jeddah 3.234 million; Mecca 1.484 million; Medina 1.104 million; Ad Dammam 902,000........................ GDP composition by sector: agriculture: 2.7%, industry: 61.9%, services: 35.4%.......................Grossed fixed investment: 24.5% of GDP
HOUSING MARKET DEFINITION
The market demand is expected to rise simply based on Riyadh ’ s population growth that triggers housing and infrastructure needs. For Saudi Arabia - the biggest economy in the Middle East - the average real growth forecasted per year between 2010 and 2014 is at 4.13 percent . With the economic growth and population demands Saudi construction market holds an ample opportunity for building development.
Housing market definition
A recent study conducted by the Saudi-based Jiwar Real Estate Management and Marketing Firm reveals that around one million new homes are to be built over the next five years to keep up with an estimated 3.3 percent compounded annual growth in demand. This growth indeed translates into about 5,5 million required units by 2014.
Within the construction market the PVC windows market is expected to grow significantly within the next few years. Saudi economic survey indicates that for the past 5 years since the PVC was introduced in Saudi Arabia, it has accounted for 5-10% of the windows market.
HOUSING MARKET DEFINITION
The competition consists of two companies with the Saudi Industries For PVC Windows Co. Ltd . running at the forefront with almost 70% of market share . The strength of our competitors lies in their already secured presence on the market. Stemming from such their production is already established and tuned while possessing the necessary knowledge of the local market. However on the other hand the lack of competition causes a narrow product range and limited market supply combined with long delivery times. At the same time the existing machinery & equipment parks often consist of outdated technology . Major competitors :
SAUDI INDUSTRIES FOR PVC WINDOWS CO. Ltd
Company Name: Saudi Industries For PVC Windows Co. Ltd. Business Type: Manufacturer Product/Service: PVC-u Profiles, PVC-u Windows and Doors, Partitions, Skylights, Domes, Curtain Walls, PVC Foam Sheets, Rollup Shutters and PVC Structural Glazing Number of Employees: 300 – 350 People Factory Size (sq. meters): 10,000-30,000 square meters Quality Management Certification: SGS Yersley International Certification under the number Q10612 Total Annual Sales Volume: US$10 Million - US$50 Million The company produces its PVC Window products under Wintek brand name Company Name: Fazah Industrial Company Business Type: Manufacturer Product/Service: PVC windows and Doors profiles, Tilt & turn system, Sliding System, Ancillary Profiles Number of Employees: 11 - 50 People Main Market: Southeast Asia, Africa, Mid East Factory Size (Sq. meters): 10,000-30,000 square meters Number of Production Lines: 3 Management Certification: ISO 9001:2008 Others The company does not directly engage in window production and assembly.
product definition: PVC-U profiles from aluplast Aluplast belongs to the top flight of national and international extrusion companies for PVC profiles with a strong innovative power. It is a holder-to-be of a patent that allows for stabilization of the sash without the steel which is unique in the European market. Its products achieve the highest standards for insulation and design . I D E A L 2 0 0 0 ® I D E A L 4 0 0 0 ® Sliding system ®
PVC-U profiles from Aluplast
ALUPLAST company profiles will allow our windows to have the best properties and characteristics:
low thermal conductivity which is achieved via the choice for material of the window profile and the selection of the glass. Especially in an air-conditioned building, the PVC windows can reduce the loss of energy to 30%.
strict corrosion resistant standards that is especially important in the Saudi Arabian environment with it ’ s desert climate and high pollution exposure due to heavy industries.
noise reduction due to the PVC-U material and the multi-chambered designed. By cutting unnecessary disturbances the product will be suited for Hospitals, Schools and Office Buildings.
low coefficient of thermal expansion which will allow it to be easily operated even under extremely warm weather conditions (out door temperature of 45 deg. C and more). The maximum thermal expansion is 0.36 m/m for 1.5 meter of profile.
safe from electrical conductivity thanks to its high electrical insulation
Aluplast will supply us with the following PVC-U profile systems :
Ideal 2000 Classic line (60mm) Tilt & Turn
Ideal 2000 Round line (60mm) Tilt & Turn
Ideal 4000 Soft line (70mm) Tilt & Turn
Sliding 60 - Sliding window
Multi Sliding - Sliding door
PVC-U profiles from Aluplast – IDEAL 2000
IDEAL 2000 ®
IDEAL 2000® is the most substantial 2-4-chamber system with two levels of sealing and a 60 mm depth. The IDEAL 2000® series stands out as the highest possible level in security and longevity and provides maximum protection against noise and climatic influences. IDEAL 2000® offers the best possible price-performance ratio and a perfect economic efficiency. Many possible variations allow for the use of the system in the domain of commercial buildings as well as private homes.
Advantages of the IDEAL 2000 ® series:
The new system exploits the advantages both of the IDEAL 4000 ® profiles and the tried and tested system IDEAL 6000 ® - without any increase in installation depth. The IDEAL compatibility concept clearly highlights ways in which to save costs and storage outlay, thus benefiting the end customer. With the profile systems from Aluplast , we are guaranteed the ultimate in terms of individuality and security, both for the construction of commercial buildings and private homes.
Multi-chamber structure extends to casements as well for optimized thermal insulation
Frames supplied with a depth of 80mm and heavy-duty reinforcement for exceptionally high stability
3-6 chamber system for increased thermal insulation properties
Sound insulation up to 46dB
Simple option for retrofitting controlled ventilation for living spaces (with our "Air Control" system)
Casements either recessed or half recessed
Various profile contours for a superior finish (e.g. Soft-line, Round-line, E-Optics)
2 sealing levels all around the window for a highly leak-tight window
PVC-U profiles from Aluplast – IDEAL 4000
With a 3-6 chamber system, 2 rebate seal levels and a depth of 70mm, the „Aluplast-IDEAL 4000®" windows offer excellent thermal insulation properties.
The advantages of IDEAL 4000 ®
As one of the first profile manufacturing companies, Aluplast recognized the need for higher insulation and developed the top-quality system IDEAL 4000 ® . Neither optical characteristics nor technical aspects are compromised. Here Aluplast sets new benchmarks in modern design as well as in durability. Plastic profiles from Aluplast give a guarantee for a maximum in individuality and security in the domain of commercial buildings as well as private homes.
3-6 chamber system for better insulation capacity (U-value 1,3)
glazing thickness up to 44 mm
depth of 70 mm
modern design, sloped surfaces and round flanges inside and outside
exchangeable sealing (black and papyrus white)
different annexation profiles for different annexation situations
possibility of covered and hidden drainage
great reinforcement chamber for an ideal static strains
design glazing bead for inside
possibility of easy upgrading for controlled ventilation (Regel-Air ® )
airfoil surfaces shifted, half-shifted
different profile outlines for appealing optical characteristics (e.g. Round-line, E-Optics)
two revolving levels of sealing for a good tightness
easy disconnection of profile and sealing for eco-friendly recycling
PVC-U profiles from Aluplast – SLIDING DOOR
With a smooth-running lifting mechanism even huge sliding elements can be moved very easily. The wide opening provides a connection with the outside without disturbing steps.
All advantages of the lift and sliding door
thermally separated sill
multi chamber profiles for better insulation
great fortification for ideal static attributes
possible glazing up to 44 mm
depth of 70 mm
depth of 70 mm
extremely smooth running, even with extensive doors
product definition: FITTINGS Gretsch-Unitas GmbH offer a wide variety of hardware for windows and doors, made from timber, PVC and aluminium. Long-term experience and technical know-how ensure that the companies ‘ hardware is safe, comfortable and easy to use – tailor-made, with a great visual appearance. Gretsch-Unitas GmbH brand products are continuously tested to the highest quality standards and are subject to extensive internal long-term tests whose requirements exceed the legal rules and regulations.
FITTINGS FROM Gretsch-Unitas GmbH
Producer contact information
The family-controlled company, with Gretsch-Unitas GmbH as the holding company, counts amongst the most renowned suppliers of construction fittings and security equipment worldwide. With an extensive product range it has made a decisive contribution in the comfortable and secure functioning of construction fittings and locking systems.
Overall, the Gretsch-Unitas group of companies offers a complete program of more than 100,000 individual parts, together with numerous system solutions for the equipping and control of window and door systems. All the products conform to the highest requirements with respect to quality, comfort and security, and are available to the market at a fair price-performance ratio.
Gretsch-Unitas GmbH will supply us with the following products:
Project cost Technology, equipments & cars, Hardware, software , Instalation work / training: SR 10,000,000 Marketing: SR 1,000,000 Raw materials for manufacturing / permanent warehouse: SR 1,000,000 Total Investment: SR 12,000,000 profit: 20-60 % depending upon size of the project, completion deadline, type of window and the complexities in the window design and site location.
Our production capacity is intended to be 90 PVC window units per 1 production shift which translates into approximately 2 000 PVC window units per month and 24 000 per year.
In the first year however we intend to run at 60% capacity. In year 2 we raise the production capacity to full 100% while in year 3 to 150% by turning into a two-shift-a-day production.
DEVELOPING A MARKET SHARE
Gradually up to the year 3 when we reach the planned production capacity we in t end to rise our market share to 10 – 20 % of the domestic SA market.
We will position ourselves to become a second major player in the PVC-U window production in SA next to Wintek, while approaching market segments demanding higher quality in design, technology and safety.
B USINESS VARIANTS
avrg. selling Window unit price: SR 1300 /sqm Production per shift: 90 windows units 1 st year 2 nd year 3 rd year 4 th year 63 (70%) 90 (100%) 108(120%) 135 (150%)
B USINESS VARIANTS
avrg. selling Window unit price: SR 1350 /sqm Production per shift: 90 windows units 1 st year 2 nd year 3 rd year 4 th year 72 (80%) 90 (100%) 135 (150%) 180 (200%)
B USINESS VARIANTS
avrg. selling Window unit price: SR 1250 / sqm Production per shift: 60 windows units 1 st year 2 nd year 3 rd year 4 th year 54 (60%) 90 (100%) 108 (150%) 135 (200%)