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More bang for your buck

Article - December 5, 2011
With a solid base as the leading provider of civil explosives in the country, Saudi Chemical Company also has increasing interests in pharmaceuticals
Saudi Chemical Company (SCC) is at the forefront of Saudi Arabia’s civil explosives production, with three factories in Riyadh, the Eastern and Western Regions, offices in Al-Khobar, Jeddah and Abha, and distribution depots in the Southern Region in Abha and Makkah Al Mukaramah area.

SCC has achieved continuous record growth rates of 13% since 2006. SCC and its subsidiary companies closed 2010 with consolidated net sales reaching SAR1,687 billion ($450 billion), representing a 3% increase on the previous year.

During the first quarter of 2011, the company’s gross profits ,of SAR 112 million, increased 14% compared to the same period last year. Earnings per share reached SAR 1.36, increasing from the previous year’s SAR 1.18.

SCC traces its beginnings back to1972, when it was set up as a joint venture company between Nitro Nobel AB Sweden and private Saudi investors. It was the country’s first explosives manufacturer, and immediately served as the domestic provider of civil explosives used for rock blasting in road cuts, foundations, trench blasting for oil and water pipe lines, tunnelling for roads, and for mining.

Having a domestic provider of civil explosives is of huge benefit to the state, as it avoids the potential dangers and delays involved when transporting explosives from another country.

The local market accounts for 98% of the company’s sales – though SCC also serves foreign markets with the essential and supporting materials for all operations involving civil explosives. The company also offers a wide range of technical services ranging from safe transportation, storage, technical planning and on-site services.

SCC’s line of production today includes the world’s most commonly used and safest explosives and non-electrical detonators: kemulex, prillex and sanel.

Kemulex is an emulsion explosive, it has a high detonation speed and can be packaged in custom sized cartridges to suit a client’s needs. It is suitable for worksites with wet holes and underwater explosions.

Prillex is a dry blasting agent made up of ammonium nitrates and fuel oil (ANFO) used mainly with fissured sedimentary rocks and underground applications.

Sanel is a non-electric shock tube detonator with especially accurate controls that reduce the blasting vibration. It is suitable for bench and trench blasting.

In 2004, SCC once again proved itself market leader by running a new production line for enviroseis, the safest seismic explosive.

SCC also controls two wholly owned subsidiary companies serving different markets: Saudi International Trading Company Ltd (SITCO Pharma) and Suez International Nitrate Company (SINCO).

SITCO Pharma, formed in 1990, is one of the kingdom’s major pharmaceutical distribution companies, and acts as agent for several leading multinational pharmaceutical companies.

Through a unique partnership approach, SITCO Parma holds distribution agreements with major multinational pharmaceutical companies and their subsidiaries – Glaxo SmithKline and Boehringer Ingelheim among others – and provides a large share of international drugs to the kingdom.

SITCO Pharma has four primary distribution centers located in the major metropolitan areas of the country (Riyadh, Jeddah, Dammam and Khamis Mushayt) with the capacity to service 90% of the kingdom’s pharmacies in under 24 hours.

In its Annual Report 2010, SCC reflects that SITCO maintained its sales levels and gained a record share of the market in the sale of vaccines and cooled drugs, becoming the first supplier of this type of drug in the local market.

SINCO, based in Egypt, now produces low density ammonium nitrate (LDAN), a substance primarily used in civil explosive manufacturing.

The company is strategically located in Suez, close to all major local ports which facilitate transportation and exportation. SCC develops programs of performance to maintain its global standards and contributes to social and health awareness campaigns through its Social Responsibility Program.