Karram: looking for new ventures

Middle East Specialized Cables Company (MESC), one of the leading manufacturers and suppliers of industrial, instrumentation and process control cables, is gearing up to capitalise on the booming regional market.

The company is increasing production capacity, launching new products and has plans to set up another manufacturing facility in the GCC region.
MESC’s seventh expansion of its Riyadh facility is the biggest so far and will increase its production capacity of industrial cables by 30 per cent. The company’s current capacity is 12,000 tonnes.  An additional factory shed of 5,000 sq m has been constructed at its present location.
 “The latest expansion will help us address the needs of EPC contractors and enhance our flexibility,” said Said Al Karram, regional manager, GCC and Iran.
Last year the company registered a 70 per cent increase in sales at SR1.3 billion ($347 million). Its aim is to reach the SR3 billion mark in three years’ time.
 “The financial performance of 2007 is a great example of the phenomenal evolution made by the company and is a vital sign of its status among the world’s leaders in the cables industry,” observed Karram.
Production capacity increased 40 per cent last year.
The export market, which currently accounts for 35 per cent of its production, is expected to reach 50 per cent this year. The export base will be expanded.
The company has entered the Indian market and wants to maintain its presence there. Its biggest client in India is Reliance Industries. The company also has its sights on the North Africa market, especially Libya and Nigeria.
“After we went public in December, our intention is to capitalise as much as we can on current market conditions,” said Karram.
The company is now looking at starting another manufacturing unit in a Gulf country.  “We are looking at possibilities and details to set up the factory in the right industrial area or free zone that will allow us scope for future expansions,” Karram said.  
Meanwhile, work on the MESC – Fujikura Cable Company, set up in Jordan to manufacture low and medium power cables, is scheduled for completion in September this year.
The purpose of establishing this joint venture is to meet the growing demand for medium power cables in the GCC, Levant and North Africa regions. Currently its staff is undergoing extensive training at Fujikura Federal Cable factory in Malaysia in order to gain proficiency.
“We are also carrying out some standard expansions at JNC Cables in Jordan as we see demand from the infrastructure, industrial and oil and gas sectors continuing to grow over the next five to six years,” said Karram.
“We also expect a lot of demand from the construction sector for cables and related products and plan to expand into the utility sector.”
Established less than 15 years ago, MESC today is considered a force within the world of cables. The company says its vision to become a one-stop-shop for all types of cables has become a reality as MESC and its subsidiaries MESC – Fujikura Cable Company and JNC Cables address market segments including energy, oil and gas, power and petrochemical plants and the infrastructure, telecom and building markets.
MESC says it is dealing with competition from international companies by offering quality products and services.
“Increased demand will attract more international players so we have to be well-prepared, well-structured and well-organised to get a bigger market share. We cannot jeopardise our position,” said Karram. “We are improving our human resources systems, our procurement procedures and services in order to be more flexible.”
The next few years will witness a major diversion for the MESC brand and position the company as the leader in the specialised, instrumentation and control cables industry, said Karram.