The first Saudi company to manufacture prepainted steel products hopes to achieve a production capacity utilisation of up to 80 per cent this year and consolidate the gains it made in Western Europe and the Arabian Gulf.

BHP Universal Metal Coating Company Limited (Unicoil), which commenced production in December 1997, is also proud that it has strengthened links with traditional customers and found new markets.

"Despite the global economic slowdown resulting in basement prices being offered by international players, Unicoil achieved its business goals of production, profitability, quality and product reliability,'' says company president Fahad Al Thukair.

"Although the steel market appeared to have no bottom, Unicoil did a commendable task in not only strengthening its ties with its traditional customers but also expanding its customer base, particularly outside the Kingdom."

Unicoil, located in Jubail, the Kingdom's industrial heartland, is a joint venture between BHP Company Limited of Australia, the local Al Zamil Group of Companies and Rashed Al Rashed Industrial Group.

It undertakes prepainting coils of cold-rolled plain carbon steel, galvanised cold-rolled steel, steel coils with zincalume (Zn-al alloy) substrate and aluminium.

It produces the Colorbond range of prepainted steel products said to perform very well in even the toughest environments.

The Colorbond XRW prepainted steel has been developed by BHP to provide a high-durability cost-effective cladding and roofing material for general exterior use. Its typical uses are in roofing and accessories, wall cladding, rainwater goods and insulated panels. The standards achieved are: substrate - ASTM A792 50B; paint coating - AS 2728, category 3.

While the factory officially commenced working in December 1997, production in commercial quantities began only in May 1998.

The company says it has now captured a high proportion of the Saudi prepainted steel construction market. The company also supplies high-gloss paint systems to the lighting sector and has fulfilled orders for prepainted aluminium from the pre-engineered building market.

"Unicoil's product has been well accepted and successful in replacing imported material from the Far East," Al Thukair says.

Al Thukair says the objectives for 2001 include entering into long-term contracts with big consumers and achieving and, if possible, exceeding profit targets, in addition to realising a production capacity utilisation of 70 to 80 per cent and consolidating the gains made in the Western Europe and Gulf markets.

"Unicoil brings together a unique partnership of skills and position into one extraordinary company dedicated to the manufacture of quality prepainted products based in the Kingdom," a company spokesman says.

He continues: "BHP brings coil painting expertise as the largest coil coater of construction products in the world and the only steel maker who is a producer in multiple markets.

"The Al Zamil Group of companies brings premier experience in world-renowned engineered buildings and a high-quality reference to the joint venture. Rashed Al Rashed brings a highly reputable building products supplies company and excellent distribution network to complete the hybrid strength of Unicoil.

Total investment of the joint venture was $40 million with a workforce of 86.

The plant utilises a coil processing line manufactured by Fata Hunter of the US.