AIP sales show improvement.

Kuwait's sole manufacturer of chlor-alkali chemicals has reported an improvement in total sales and exports and is implementing long-term supply contracts with leading companies. Al Kout Industrial Projects Co (AIP) produces chlorine, caustic soda, hydrogen, hydrochloric acid, sodium hypochlorite and industrial-grade salt. The manufacturing process is based on membrane technology and operations are conducted with the technical support of global companies including Ineos Chlor Ltd, Bertrams, Set and Astrom. A second line for the caustic soda flake unit is expected to come on stream soon. "AIP recorded steady sales growth in the past few years and managed despite the global recession to exceed sales targets for 2008," said general manager Basil Toutoungi. Total sales in 2008 were $38.13 million against $37.51 million in 2007 and $32.57 million in 2006. Exports amounted to $15.01 million in 2008, $14.42 million in 2007 and $10.49 million in 2006 with consignments going to the GCC states and other Asian markets plus Africa. Toutoungi said the company would extend its sales network to Europe this year. Chlorine contributed 43 per cent to sales and caustic soda 38 per cent. Operating profits were $13.96 million in 2008 against $12.04 million in the previous year. "From an operational point of view, the chlor-alkali business consolidated its achievements of previous years and improved on them in revenues and in expense reduction thus improving profitability by 5 per cent," said Toutoungi.

Major customers Major Kuwaiti customers include the Ministry of Electricity and Water, the Public Authority for Industry, the Ministry of Public Works, Kuwait Oil Company, Kuwait National Petroleum Company (KNPC), Petrochemical Industries Company and Equate. During 2008, AIP renewed a three-year contract with KNPC and is in the process of renewing a contract with Equate. Major shareholders of the company are Shuaa Capital, Hamad Al Saqer Company and Jiblah Holding Co. Ahlia Logistics & Transport Company, a fully owned subsidiary of AIP, specialises in the transportation of chemicals including the hazardous ones across the Middle East. AIP does contract manufacturing and distribution of oilfield chemicals for Champion Technologies USA and during the third quarter of 2008, AIP acquired a 23 per cent interest in Al Dora Petroleum Services Co which is engaged in providing integrated petroleum services to the oil and gas sector. The company also purchased a 30 per cent equity interest in Moya Holding Company which will be engaged in water desalination, wastewater treatment and water distribution in the GCC region. The company said the growth strategy for 2009 was capacity enhancement and strategic acquisitions.

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