signing construction contract for aia’s main -...

Vol(8), No.30 - Dhual-Hijjah 1427H – January 2007

Quarterly Issue of Alkhorayef Group

of Companies

Signing Construction Contract for AIA’s Main Office Center

Strategic Partnership between Alkhorayef and KSB International

Trial indices in all parts of the world show that development strategies accomplished on sound bases, whether on the level of private or public sectors, depend basically on export. So, all indices in the world show that the race between exporters in the markets increases daily. Alkhorayef Group has understood that and worked accordingly; and is now the forerunner in this field on the level of Arab and regional companies.Adopting the development of export policy, in which we are already far ahead and hope for more as the Group owns the basic wide constituents for industrial and commercial sectors that achieved a great growth, is the motive for supporting export of the Group’s products. As a result of these policies, the Group’s industrial sector produces a number of products, which have profitable and active markets, and works on introducing a number of new products.We, in the international marketing management, are also paying attention to the developing markets in particular and focusing on them to get acquainted with their requirements and satisfy them, which applies to many countries of the Middle East and Africa. To achieve this we are always keen to take care of two main factors: 1.Export opportunities that depend on the number of population, rate of growth, and resources of each country.2.Export capabilities.Export capabilities wholly depend on the comprehensive quality that creates the competitive advantage. So, Alkhorayef Group is keen in focusing on the comprehensive quality management, which means, in its integrated system, a management and cultural development distinguished in performance so that we are able to achieve the blend and reaction between the different business activities.Understanding the matter of changing the market into buyers’ markets is extremely important issue. Hence the competitive abilities and relative advantage are the only mean to deal with the market.We have strived to coordinate all our available resources and invest them with very high efficiency including ensuring financing channels to push our competitive abilities forward. We have also placed the marketing issues at the top of our priorities in the Group, as they are the sensitive nerves of the Group. Thus we are able to reach the leading position we are currently occupying in the market.

Fayez Al-A’nie,Vice President, Alkhorayef Company

for International Equipment

Importance of Export Strategies

Isssue 30 - January 2007

Editorial

3

AIEC is a company in the free zone, Jabal Ali, Dubai, UAEP.O. Box: 17564 Tel: +97148872626 Fax: +971148872627

Alkhorayef Group of CompaniesP.O. Box: 305 Riyadh: 11411 Tel: 4955452 Fax: 4950261

Alkhorayef International Equipment Co.

Abdullah bin Hamad Alkhorayef GM for Saudi Installment House

Under the aegis of HRH Prince Bandar bin Faisal bin Abdulaziz Al Saud, Governor of Qassim Region, HE engineer Abdullah bin Abdulrahman Al-Husain, Minister of Water and Electricity, signed a package of contracts of water and sewerage projects for Qassim region with a number of national companies and establishments with more than SR 700 million.

The contracts included a contract for operation and maintenance of Drinking Water Purification Plant, Pressure Boosting Plants, and Wells and Water Tower in Buraidah City, which settled on Alkhorayef Operation & Maintenance Company (AOMC) with an amount of SR 49,999,999.44 million.

Sheikh Saad bin Abdullah Alkhorayef signed the contract on behalf of AOMC.

Alkhorayef Operation & Maintenance Company Signs a Contract for Qassim Water Purification Plant

Based on the resolution of the Partners’ Board of Directors, HE Abudllah bin Hamad Alkhorayef is appointed General Manager for the Saudi Installment House (SIH) and granted full financial and administrative authorities. He has to submit his reports directly to the Chairman of the Board of Directors. This resolution is valid as of 01/01/2007.

The editing staff of Alkhorayef Quarterly magizine congratulates HE Abdullah bin Hamad Alkhorayef and wishes him good luck and success.

News

Abudllah bin Hamad Alkhorayef


News

Isssue 30 - January 2007 5

Aspirations of AlkhorayefAre to occupy the driving seat position in all fields of our work through a comprehensive solution programs that satisfy all our customer

requirements

Chairman, Board of DirectorsAbdulrahman Abdullah Alkhorayef

Editor - in - ChiefSaud Abdulaziz Alswailem

Editing SupervisorMohammed M. Al-Shihri

Mission of AlkhorayefTo strive for leadership in all its business activities by supplying quality products along with professional after-sales support through its carefully selected and highly professional employees and to play a vital role in technology

transfer and environmental protection.

All correspondents should be sent to Editor -in-Chief, G.M., Human Resources Department

P. O. Box 305, Riyadh 11411Tel: 01/4955452 Fax: 01/4950261E.Mail: [email protected].

View published in Alkhorayef bulletin express only their writers and the Bulletin shall hold no

responsibility towards them.

Publisher

P.O.Box 26450 Riyadh 11486Tel: 4193123 - 4192153

Fax: 4192640

Contents

5

8

14

16

News

Reportage

Study

Community

Alkhorayef ManagementServices (AMS)Riyadh 11411 P. O. Box 305Tel:(+9661) 4600858 Fax:(+9661) 4600815

Saudi Installment HouseRiyadh 11451 P. O. Box 18331Tel: (+9661) 4925000 Fax:(+9661) 4922570

AlNakhil PaperIndustries CompanyRiyadh 11416 P. O. Box 22815Tel: (+9661) 2650201 Fax:(+9661) 2650182

Saudi Parts Center Co.Riyadh 11551 P. O. Box 42679Tel:(+9661) 4950917-4953479Fax:(+9661) 4953351

Alkhorayef Operation& Maintenance CompanyRiyadh 11595 P. O. Box 62637Tel:(+9661) 4351479 Fax:(+9661) 4357410

Alkhorayef Agricultural Projects CompanyRiyadh 11583 P. O. Box 53390Tel:(+9661) 4351479-4351480 Fax:(+9661) 4352968

Trans Orient ModernMachinery Co.Head Office: Riyadh 11412 P. O. Box 4605Tel: (+9661) 4786161 Fax:(+9661) 4775439

Alkhorayef Industries Company Ltd.Riyadh 11551 P. O. Box 42852Tel: (+9661) 2651124 - 2652057 Fax: (+9961) 2652348

Alkhorayef Group CompanyRiyadh 11411 P. O. Box 305

Tel:(+9661) 4955452 Fax:(+9661) 4950261

Abdullah Ibrahim Alkhorayef Sons CompanyRiyadh 11411 P. O. Box 305Tel:(+9661)4351479-4351480 Fax:(+9661)4358852

Quarterly Issue of Alkhorayef

Group of Companies Dhual-Hijjah 1427H – January 2007

Colleague Khalid Ali Al-Dosari, of the Marine Division, participated in the Championship of “Jeddah Race Way” for Motorbikes, above and under 900cc categories.

Al-Dosari achieved the first position in the category of above 900 cc and the best time (9.3 seconds) since the inauguration of the race track. This figure is a record in covering the distance of 400m (quarter of a mile) with a speed of 341km/hour.

Colleague Al-Dosari participated with 600cc bike for the category of under 900cc. It was the smallest bike in the race track that achieved the best time and the second position.

On this occasion Mr. Al-Dosari won two trophies presented by the organizing committee of “Jeddah

Race Way” and symbolic financial rewards. It was also agreed that Castrol Oils, as usual, would adopt the racer when realizing achievements in the championship.

It worth mentioning that colleague Al-Dosari is an active member in the team of “Al-khobar Bikers”. He expressed his happiness to Alkhorayef Quarterly magazine for realizing this achievement and confirmed that it would be a good incentive to him to exert more efforts to achieve better results in other participations in the future.

He will also participate in the championship that will be held in the United Arabs Emirates in 8th of May, 2007 and the other one in Jeddah track in 20th of February, 2007.

Alkhorayef Commercial Com--pany (ACC), the Marine Division, received a shield of apprecia--tion and thanks for the material support it provided to Ramadan Blessing Gathering of 1427H from the Ministry of Islamic Affairs, En--dowments, Call, and Guidance.

HE Sheikh Salih Al Al-Sheikh, Minister of Islamic Affairs, En--dowments, Call, and Guidance handed over the shield to Mr. Dhaifallah Al-Ghamdi, official of the Government Sales in the Ma--rine Division in Riyadh on behalf of the company.

A Shield of Appreciation to Alkhorayef Commercial Company

Al-Dosari, the Champion of “Jeddah Race Way” for Motorbikes

Article


Signing Construction Contract for AIA’s Main Office Center

HE Sheikh Abdulrahman Alkhorayef, AIA Chairman of the Board of Directors, singed in his office a construction contract for AIA’s Main Office Center located in northern Riyadh at the intersection of Al-Takhasousi (KFSH) Road with Abu Bakr Al-Siddiq Road, with Mr. Mahmoud Shaba’n, on behalf of the Saudi Buildings and Installations Management Company.

The project includes 7 buildings: six of them are elegantly linked with each other and with best designs. They will be assigned for the use of some

companies of the Group.The 7th building is an independent unit

comprising the offices of the Chairman of the Board of Directors, senior executives in the Group, in addition to a Main Conference Hall.

The project will be completed in a year and half time as of the date of signing the contract (Monday 15/10/1427H “6/11/2006”).

Engineer Faris Al-Faris, Project Designer and Advisor, and Mr. Abdullah bin Ibrahim Alkhorayef attended the signing of the contract.


News

6

Irrigated Area, Field Shape and itsTopographyField topography means the differences in elevation contours lines across the irrigated area, it’s important to determine average slopes across a field as well as the location of sharp disruptions in elevation. In general all Mechanized Irrigation System supply by Alkhorayef works fine with 15% slope. The irrigated area of the most center pivots provide by Alkhorayef to their domestic, African and Middle East markets is varied from 50 to 75 hectares whereas the irrigated area is increased to 172 ha when Alkhorayef provided 14 towers machine with 741m radius to New Zealand market. This variation in irrigated area turns back to the water depth required in mm per day due to the available climatic weather at the irrigated area.

Soil types and its texture and structureThrough different types of sprinklers varied from fixed to rotating plates, Alkhorayef’s Irrigation Systems provide ideal water application depth for different soil types to do the following benefits:- Minimize runoff, - Soil structure is maintained- Soil composition is not disturbed- Small soil particles remain disbursed with larger particles- Low kinetic energy minimizes surface compactionAlkhorayef’s Irrigation Systems is using fixed plate sprinklers which have high application rate to suits the high infiltration rate of the light and medium soils like sand and its derivatives as shown in soil texture triangular.Runoff and deep rut and their relationship with soil infiltration rate are important to take care about it especially at medium and heavy clay soils, different droplet sizes and low instantaneous application rate are providing optimum solution for such soil types as shown in Fig. 1.The results of several field studies has been conducted to compare between center pivots, solid set system and flood irrigation revealed

Soil Texture Triangle


This is the first question we must answer to find out the right irrigation system which achieves maximum uniformity, minimum energy cost and suits the different project’s conditions including: suits all site conditions such as:• Irrigated area, field shape and its topography, • Soil type and its structure and texture,• Water availability, quality and its source,• Crop type,• Climatic weather,• Power source.Alkhorayef Group is providing different mechanized irrigation systems such as Center Pivot, Linear, AcreMaster and Spinner to cover the variation in site conditions.

How to select the right irrigation system

Reportage


soil directly without touches crop canopy,- Use less energy due to very low pressure needed (6-10 psi at nozzle),- LEPA tillage practices and system management reduce runoff,- No wind drift,- Irrigates each plant more frequently.There are different applicators types of LEPA practice which has four models of operations; germination, chemigation and two bubble drop shapes suite different soil infiltration rates. Standard fixed sprinkler can be amended to do the same function of LEPA system through using special adapters such as Drag Socks. All LEPA applicator deposit water directly into the furrow basins with minimal erosion to the furrow dikes or Bubble Mode with max application rate less than 10 GPM and Irrigation Efficiency up to 98%.Also high profile center pivot irrigation system is available for Orchards which suites its application and water requirements.Climatic WeatherWater requirements of crop are varied from region to region based on available climatic weather. Evapotranspiration in mm per day is the main factor in mechanized irrigation systems design. Water volume delivers to any mechanized irrigation system must be enough during the peak consumptive use or maximum Evapotranspiration period to cover crop water requirements. This variation in climatic weather and maximum value of Evapotranspiration during the summer explains why Alkhorayef able to provide 14 towers pivot system with 172 hectares of irrigated area to New Zealand market and not able to do the same at the domestic market.

Evapotranspiration value in mm/day can be known by using weather station. Alkhorayef has this type of weather station which not only calculates Evapotranspiration but also predicts with the plant diseases and measures soil moisture content.With a wide range of the weather stations which can send its data to the PC direct, wireless by IR and send its data to the internet using GPRS technique.

Whatever the field shape and available irrigated area on site, Alkhorayef’s irrigation systems able to irrigate that area through different types of the mechanized irrigation systems:• Center Pivots• Integral solution for most field crops,• Available in different pipe sizes (6 5/8” & 8 5/8”)

with using fixed or rotating sprinklers packages based on the soil type of the irrigated area but nowadays Mechanized Irrigation Systems suite row crops like cotton, potato, onion,….etc. This can be done by using the practice of Low Energy Precision Application (LEPA) which is approved as a water management practice since provides the following advantages:- Cuts water losses because water deposits to the


that center pivot has low opportunity to create runoff at the irrigated area as shown in Fig 2.Low Operating PressureAll previous sprinklers which suite different soil types have another very important advantage which is low operating pressure required to give high irrigation efficiency. When comparison made between traditional sprinkler which operates with 30 psi and Modern sprinklers which operate with 10 psi under the same number of operating hours per season and year, the results revealed that, annual operating cost saving per one system was SR 4166/year ($1110) due to operating pressure differences as shown in Table 1.

Annual Operating Cost Saving, SR

Annual Operating Cost, SR

Annual Operating

Hours, hr/year

Seasonal Operating

Hours, hr/season

Flow, GPMOperating Pressure

, psi

Sprinklers Type

41664968840002000100030Traditional

45520100010Modern

Fertigation & ChemigationAlkhorayef’s Irrigation system can be equipped with

fertilizer and chemical tank with fertilizer pump to apply fertilizers or pesticides through center pivot during fertigation and chemigation processes. Water availability, quality and its sourceWater volumes available in GPM or 3m/hr at farm, type of cultivated crop and system irrigation efficiency determine the maximum area can be planted. Due to the high irrigation efficiency of mechanized irrigation system; water consumption per hectares is less with 50 to 65% comparing with traditional flood or surface irrigation.Whereas water quality goes down and salinity goes up in P.P.M or ds/m or with slurry machines; lined mechanized irrigation system with PVC and same functions and advantages of the standard mechanized irrigation system is the best selection in this situation.Crop TypeCrop types mainly are divided into two categories based on seeding method; intensive and row crops. In the past Mechanized Irrigation systems was suited intensive crop like Alfalfa and wheat


Reportage

10

Alkhorayef Industries Company Ltd. (AIC) held a big ceremony in Makarim Hall at Riyadh Marriot Hotel on the eve of Monday 15/10/1427H (06/11/2006) on the occasion of launching strategic partnership with KSB International Group of Companies.

AIC partnership is established through its factories in Riyadh by producing turbine pumps, gears, iron pipes, and center pivot irrigation systems. It also produces power generators in collaboration with Volvo and John Deere international companies.

Engineer Mohammed Alkhorayef, President and CEO for Manufacturing Affairs, admitted that the basic aim of establishing AIC 25 years ago was to satisfy the Kingdom’s needs of engineering products, transfer and nationalize technology which would reduce costs, boost chances of providing more labor opportunities for the Saudi youths, and enable them to penetrate more international markets. “We are now, thank God, exporting our products to different countries in the world.”

He added that Alkhorayef Group accomplishes such partnerships based on the conviction that

it is able to employ its resources to add a value which benefits the country and partners.

Engineer Mohammed also indicated the efforts of Alkhorayef Group in the nationalization and promotion of technology. AIC produces polyethylene-lined pipes and has the patent and production rights worldwide; in addition to the Groups’ factories in the Eastern Region that satisfy the requirements of oil sectors and desalination plants.

It worth mentioning, that KSB International Group produces pumps and high-quality valves through its group of factories in Germany and other countries. It spends tens of millions annually in the fields of research and development which have enabled it to be the leader worldwide.

KSB products are used in field of water, sewerage, industries, power, mining lines, and buildings.

The use of KSB pumps and valves in the Kingdom dates back to more than 40 years. The two companies, with their resources and capabilities, intend to enhance the position of products by providing the distinguished technical support.

Strategic Partnership Concluded between Alkhorayef Group and KSB International Group


Reportage

13

to maintain minimum operating pressure,o Available in different outlet spacing to maintain high application uniformity and efficiency.• Best selection for large scale farms and circular fields with irrigated area ranging from 50 to 75 ha at hot climate and increased to 172 ha at cold climate,• Easy irrigation management,• Reliable, labor saving,• Energy saving,• Easy way to provide your crops with chemigation and fertilizers.

• Linear Systems• Best selection for square and rectangular fields with the same range of the irrigated area of the center pivot systems, with maximum utilization of the irrigated area.• Available in different pipe sizes (6 5/8” & 8 5/8”) to maintain minimum operating pressure• Available in different outlet spacing to maintain high application uniformity and efficiency• Two types of water feeding (Drag hose & Ditch) based on water source available in the irrigated area• Less runoff at heavy soils• Easy way to provide your crops with

chemigation and fertilizers.• Economy Pivot with 5” pipe size• Suits for small fields with irrigated area of 25 to 30 ha in average • Required less water volume - 600 GPM (136.4 m3/hr)• Available with towable pivot point to irrigate different fields in the same farm area.• It has the same advantages of the standard pivot.• AcreMaster system• 4” pipe size for small fields and less water volume is required, • It can serve many small areas and do low cost per acre• No special power source required as it can work with AC or DC with any available voltage in the site.• Very simple machine can be managed by any person. • No special tools or heavy equipment is required for assembly and disassembly.• Spinner Machine• Fits small fields (2.2 HA),• No electricity required, hydraulically driven• More utilization through towable pivot point and two to four settings, • Ease of maintenance,• One galvanized 5” (127 mm) x 61 meter span with 22.5 meter overhang,• Low bar operation,

Different irrigation management devices such as THEKEY system, watermark sensors and soil moisture props and meteorological stations are providing by Alkhorayef to their customers to help them to do better irrigation management. Irrigation management and its devices will be covered through the next edition Ensha’Allah.


Reportage

12

method of execution. The plan will be submitted, after preparation, to the executive bodies to carry it out. The role of the work team does not stop here, but they continuously monitor changes, though anticipated, as the solutions and alternatives are already provided. But if the changes are unexpected, then the role of the committee here is to manage the risks to maintain the already approved objectives by those who have real interest in the project whether the investor himself or the beneficiaries.

• Direct and manage the project execution: this role is summarized as follows:

- Selecting, employing, and training the project’s members.

- Following up the market, bids, prices, offers and orders.

- Obtaining and managing the material according to the submitted plan’s criteria.

- Managing, monitoring, and revising the deliveries and sales operations and correct the shortages, if any.

- Managing the risks and laying the probable plans.

- Establishing communication channels with the project’s parties and documenting the meeting with them.

- Collecting and documenting the steps of the project progress.

- Collecting the learned lessons and documenting them.

- Providing the possible solutions to develop the project according to the basic goal of the project.

• Following up and monitoring the project work: this base is the measurement, as the management must analyze the project performance, make sure whether it is accomplished within the suggested time range or not, how competent the workers are, their production capacity, comparing the actual costs with the provided balance, determining the rate of deviation - positively or negatively - and preparing reports and submitting them once ordered i.e. measuring the achievements in the projects. And finally providing the future expectations for the project progress and available opportunities.

• Monitor the changes: the basic role here is to manage the risk against the expected and unexpected variables in the project, find complementary means between the project departments to face the changes, and reduce their negative effect on the project generally. Here we can seek the help of specialized agencies to provide the advice according to their previous experiences.

The integration of any project is the harmony between its parties to achieve the project objectives. It is not an easy role and needs exerting more efforts, time, effective communication, construction, and focusing on the public good, which is the project, as all who are associated with it, whether workers or employees, are one of those who have real interest in it and concerned with the continuation of any project.


Project Integration Management (2)

At the outset it is important to define what the integration of any project is. It includes the notion of unity, merging, and description. It aims at focusing efforts and coordinating processes and different activities related to the management of any project to achieve the anticipated success and satisfy customer requirements or of those who have interest in any project.

The activation of the above mentioned is accomplished by determining the general options to direct the project, prepare expectations for matters likely to occur, suggested solutions, and effective alternatives in case of failure of the initial solutions.

The concept of integration is regarded as an urgent necessity to any project, as the age steps of any project include the existence of several different managements with certain roles. So, it is necessary to have integration between them; for when the role of one management terminates, the role of the other begins. Or they may move together simultaneously. Take for instance the production project of any equipment. The management starts with study of the idea or the project form all aspects; financially, technically, etc. The management role ends by providing the material through the procurement department and in the same time the study of how to market the final product is accomplished.

Here we have two managements operating parallelly, the production and marketing. When the production department ends, the sales department begins the execution of the marketing department plan to promote the new product following the suggested promotional policy. There may be some manufacturing faults which will be reported by the after-sale-service department to the sales, marketing, and then production departments.

The production department plays its role with the development department to modernize the product and avoid the reported faults. The cycle returns back once again, after the development, to the marketing and sales departments. Thus the product actual cycle continues, which in most cases may give birth to a new product different from the previous one.

From the above mentioned example we find that it is natural to have cooperation and coordination

between these departments to satisfy the end user. This is of course will cost time, effort, and good coordination between different departments related to any project.

Hence, the concept of integration is actually related to the management of any project starting from the strategic planning up to the completion. It has no fixed base that can be dealt with or applied.

In the previous edition we have agreed that any project is a unique case even if the projects look alike initially.

From the above mentioned we have learnt that in order to execute the actual steps for the integration of any project, you should do the following:

• Document the project's charter: the charter provides the study of the idea presented, method of execution, and approval of the project sponsor. The steps of the study can be briefed as follows:

- Determine the project initial balance and how to exploit it in a way that suits the steps of the project execution.

- The project infrastructure and its execution schedule including installations, production tools, etc.

- The required human resources to execute the project and determine the organizational structure to manage them.

- Describe the responsibilities of each sector of the project.

- Prepare a statement with the project legal requirements such as licenses and so on.

- Describe the probable problems and how to overcome them with initial solutions and alternative ones.

- Determine the available opportunities to achieve return from the investment.

- Timetable for the execution of the project.• Promote the initial statement of the project

field: we here mean the precise definition of the project from all aspects. The primary work team refines the initial study in the charter and determines its scope, limits, and measurement criteria of the work steps technically, professionally, and financially.

• Develop the project management plan: this step is extremely important. The work team lays the necessary plan to execute the project and

Engineer Khalid Bayoumi,Manager, Market Development,

Alkhorayef International Company for Equipment

Study


In a grand ceremony attended by a group of Their Royal Highnesses, businessmen, officials, and dignitaries Alkhorayef family celebrated the wedding of engineer Abdulaziz bin Abdulrahman Alkhorayef to the daughter of Dr. Khalid bin Abdullah Al-Turki on Tuesday 14/11/1427H (5/12/2006) in Buraidah Hall at Riyadh Intercontinental Hotel.The editing staff of Alkhorayef Quarterly magazine congratulates Sheikh Abdulrahman and wishes the newly wedded couple good luck and success.

Alkhorayef


In a big ceremony attended by a group of Their Royal Highnesses, businessmen, officials, and dignitaries Alkhorayef family celebrated the wedding of HE Fahd bin Ibrahim Alkhorayef to the daughter of HE Sheikh Abdulrahman Mohammed Al-Nimer on Monday 18/12/1427H (8/1/2007) in Niyaza Hall, Riyadh. The editing staff of Alkhorayef Quarterly magazine congratulates and wishes the newly wedded couple good luck and success.

Joys of


Comminc

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signing construction contract for aia’s main -...

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