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National Industries Group (Holding) K.S.C. (N.I.G.) |
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National Industries Company (NIC) was established in 1960 with 51% of its shares
owned by Kuwait Government and 49% owned by the private sector. In 1995 and 1996
Kuwait Government, as part of its privatization program, sold all its shares in
the company to the private sector (institutions and general public). On 14th July
1998 Amiri Decree No. 153 changed the name of the company from National Industries
Company to National Industries Group K.S.C. (Holding Co.) (NIG).
Throughout its history, NIG has been self-reliant in carrying out its operations
and has been a successful, profitable and growing company. Its current paid up capital
is Kuwaiti Dinar 117,736,197 or US$428 million. In March 2007 NIG announced its
profit for 2006 and it was Kuwaiti Dinars 135 million or 146 Fils per share and
NIG distributed 60 Fils cash dividend per paid share of 100 Fils, and bonus shares
of 10% of paid-up share capital.
NIG is the leading industrial company in Kuwait outside the oil sector. In May 2002
NIG was rated Number "48" among the top 500 listed Arab companies by Al-Iktissad
Wal-Aamal magazine and the 3rd top industrial company in the Gulf by "Gulf Business"
magazine. Also NIG was rated in January 2006 by Capital Intelligence (bank analysis
and rating agency) as "A" for its financial strength, which is among the highest
ratings in the Middle East. Further, Forbes Arabia, the Dubai-based Arabic Edition,
studied 1667 publicly traded companies in Arab countries in August 2006 and, ranked
NIG as 5th among the companies that consistently performed at their best in the
last two years in the Arab World and 1st in Kuwait. Total assets for NIG as of 31st
Dec. 2006 is US$5 billion, shareholders equity US$2.5 billion and NIG market capitalization
value on 31st Dec. 2006 was US$6.5 billion and its shares are traded on the Kuwait
Stock Exchange and Dubai Financial Market.
NIG currently has 3 major fields of activity which are briefly described below:
- NIG owns and operates through its subsidiary company National Industries Company
for Building Materials (74% ownership) 17 factories specializing mainly in building
materials such as quick and hydrated lime, sand lime bricks, ready concrete, plastic
pipes and fittings, concrete pipes, slab and interlock tiles, curbstones, quarries,
insulation aerated concrete blocks, and cladding mortars. With 1450 employees working
in its operations in Kuwait. NIG also owns 100% of B.I. Group based in Birmingham,
U.K. B.I. Group owns 24 smaller companies specializing in engineering, steel products,
energy, plastics, and gas controls systems, has sales for 2005 of over US$246 million
from its European and USA operations and has 1884 employees. B.I. Group is a successful
company with high growth potential.
- NIG owns major equity shares in many companies in Kuwait and the Middle East region
such as Kuwait Cement Company, Mabanee Company, Kuwait Pipe Industries & Oil Services
Co., Housing Finance Company, Kuwait Finance House, National Investment Co., Kuwait
Financial Center Co., Eastern United Petroleum Services Company, Noor Financial
Investment Co., Ikarus Petroleum Industries Company(established in November 2005);
Kuwait Privatization Projects Co., Gas & Oil Fields Service Co. W.L.L. (GOFSCO);
Saudi Sand Lime Brick Company, and F.T.V. Proclad Company Abu Dhabi-U.A.E. NIG also
has other major equity interests in industrial and investment companies in Bahrain,
Sharjah (U.A.E), Egypt, Germany, and France and has board membership in all these
companies.
- Further NIG owns a major ownership of SR 2,000,000,000 (two billion) from the total
capital in the Saudi International Petrochemical Company (SIPCHEM) established in
October, 1999. NIG transferred its 8% equity shares and operates through Ikarus
Petroleum Industries company. SIPCHEM is operating and constructing 5 large petrochemical
projects in Jubail, Saudi Arabia, to produce Butanediol, Methanol, Acetic Acid,
Vinyl Acetate, and large Polyolefins project . NIG also, owns 5.4% equity shares
and operates through Ikarus SR3,495,735,750 (3.5 billion) in National Industrialization
Company (NIC) in Saudi Arabia NIG holds 65% majority shares in Ikarus. NIC operates
the largest polypropylene plant in the Middle East with a capacity of over 500,000
tons per year. NIC has very ambitious strategy for expansion in new petrochemical
projects to be implemented during 2005. Total cost of all these petrochemical projects
is over US$3.5 billion and are in joint ventures with very prominent international
companies.
NI Group is very active in its short to medium term financial investments in stocks,
private equity funds, technology and venture capital funds, IPO's, etc.
NIG after completion of its 10 year Corporate Strategy (1996-2005), is finalizing
its new 5 year strategy. The industrial investments side of this corporate strategy
is being implemented by the Industrial Investments and Development Division (IIDD)
of NIG with concentration on direct major investments in heavy industries. The IIDD's
emphasis is on petrochemical and basic metals industries that depend on the abundant
resources of the region, i.e., gas, oil, and energy. Such industries will be export
oriented and the investments are to be located in Kuwait or in the GCC countries
as major geographical area.
NIG's strategy for growth and development recognizes the availability and the tremendous
advantages of the vast oil and gas resources of the region as a backbone for intermediate
petrochemical and other industries. IIDD is vigorously following up a number of
projects in the downstream petrochemical industry and seeking new investments for
its project integration programs in the gas and oil services sectors. Also IIDD
is continuously monitoring new technologies and markets to be integrated or developed
in association with its subsidiaries and associate companies.
The processing of basic metals, which involves the refining and processing of raw
materials, requires large amounts of energy. This situation affords the region occupied
by Kuwait and its neighboring countries a competitive advantage over other regions
and presents a unique opportunity for NIG. A number of projects are in active development
at IIDD and its associated companies such as Iron Ore Pelletizing Plant, DRI (Direct
Reduced Iron), stainless steel coil, steel plates, calcined coke and anodes. Also,
IIDD is interested in the evaluation, development and acquisition of downstream
refinery products and services in Kuwait and GCC. IIDD continues to look for viable
opportunities in the oil processing chain in Kuwait and the region and, is also
interested in aluminium smelters and downstream processing of aluminium products
as energy dependent industry.
Finally, the privatization of the Kuwait Government's industrial activities, although
moving slowly, is considered by NIG as a very important part of its long term expansion
strategy. Electricity generation, water production, port facilities and, waste material
handling, petrochemical shipping & logistics, and environmental industries constitute
important areas of activity for NIG future, and all are expected to be part of Kuwait
privatization program. These strategic industries NIG can use to create new specialized
companies and divisions in Kuwait and to serve as a springboard to its future operations
in the Gulf and worldwide.
E-mail: iid@nig.com.kw
Website: www.nigroup.net
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