National Aluminium Products Company has completed its RO7mn expanded facility, spread over 15,000 sq metres. NAPCO is looking to propel itself to be among the top 10 extrusion companies in the GCC in terms of capacity in 2016, says CEO, Robert Holtkamp in an interview with Oommen John P.
What does the roadmap look like amid the expansion?
NAPCO’s expansion plan has progressed as planned with two new extrusion presses and one vertical powder coating line taking operation. We are now in the finalisation stage. NAPCO is ready to grow. We now have a total of four extrusion presses, a vertical and horizontal powder coating line, an anodizing line, two wood finish lines, a bending and thermal crimping facility. We are following our set targets to become a major player in the market.
What are the strategies in place to increase volumes and share? Is NAPCO looking into new markets?
NAPCO, which is one of the leading extruders of aluminium profiles in the GCC, is introducing new products and services aimed at broadening its reach across both regional and international markets. An example of this is the acquisition of the vertical powder coating line whereby we are now able to cater up to 8 meters in length which very few extruders can do. We are developing new products which should bring us higher sales volumes and are particularly focused on the local as well as other GCC markets. Opening up new markets is a daily task and we are committed to generating growth.
Why was the decision taken to increase capacity now? Do you feel the company is ready?
The decision for the expansion was taken in 2014 based on actual demand and forecast. NAPCO is more than ready to chart its progress towards achieving solid growth. It takes one and a half to two years to complete an expansion of this scale and during that time we made sure we brought in the right people to fill positions necessary to manage this growth. There is economic instability in several markets in the region but despite that, we still believe we will hit our intended targets for 2016. NAPCO has always been known as a grade A quality producer so that’s one of the stars we carry on our sleeves. We have increased the surface area by 15,000 sq metres and have included two new extrusion presses which, combined with our two current presses, will take our total output to 42,000 mt per annum.
NAPCO has built excellent contacts in the GCC, Europe and Asia over three decades so we are looking to take advantage of that.
Can you tell us about NAPCO’s performance in the year 2015?
The year 2015 was a very good year for NAPCO. We grew 45 per cent in volume and had the biggest production ever in our history with the existing equipment. NAPCO’s revenue grew over 30 per cent and the net profit saw an 8 per cent growth compared to 2014.
What are the prospects for the year 2016?
The year 2016 appears to be a challenging year not only for NAPCO but for all the related industries in Oman and the GCC due to the slump in oil prices that has put several projects on hold. The removal of subsidies and the fluctuation of currencies have also impacted businesses. Still, we are confident that we will achieve our targets. I have worked in several different industries in tough market conditions and during times of prosperity but have always applied the same key principles of success so come what may in 2016, we will be ready.
We will propel ourselves to be among the top 10 extrusion companies in the GCC by way of capacity in 2016. Currently, we are in the top 25. Our priorities are living up to the expectations of the shareholders and the 300 plus staff and their families. We have a responsibility to make the company profitable. We have doubled our capacity in aluminium production and quadrupled our capacity in powder coating. NAPCO’s main mark et is the UAE & Oman and the company plans to have a majority share of the Oman market by the end of the year with the support of the government of the Sultanate. We are a company that is growing fast and while we are growing, we want to increase Omanisation levels. Our strategic expansion will create more employment for locals.
We are trying to be as aggressive as possible in our marketing and branding strategy. Our current strategy is driven by our commitment to serve our customers better and complements our vision to provide high-quality extrusions to Oman and the rest of GCC and beyond.