English File new 2 3/8/04, 11:05:43 AMalkhorayef.com/en/common/viewfile?FilePath=~/Uploads...Engr. Saad bin Ibrahim Al-samary, deputed member of the Saudi Installment House, which

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I am pleased, while introducing this edition of the quarterly issue of Alkhorayef Group of Companies, to congratulate all the staff on the occasion of the New Year of 2004, hoping to witness more successes for the Group.

I also laud the distinguished efforts exerted by all work teams in Alkhorayed for the promotion of work in the Group and efforts to achieve their ambitions during the past year.

As this edition focuses on the lubricants section I thank all employees in this section for the efforts, which had the greatest impact in increasing the market share of Castrol oils and extending the distribution of these products.

We, in Alkhorayef Group, believe that working with the team spirit is the optimum way to run and promote works and that the cooperation of the exporter with the distributor is the guarantee for the product success, espe-cially if the product is of the best quality such as Castrol oils. This is one of the secrets for our supremacy in mar-keting Castrol oils. Therefore, we have to commend the team spirit shown by our partners in Castrol Company and British Petroleum (BP), which helped achieve this success.

The product diversification policy and keenness to lead adopted by Alkhorayef Group has proved to be fruitful. All staff in Alkhorayef Group regard the Group successes in all fields of works such as the agricultural activity, marketing agricultural equip-ment and spare parts, oil fields services, reengi-neering spare parts, manufacturing liquid pumps, center pivot irrigation systems, and paper indus-try, together with provision of the best printing equipment, and systems, establishment of the desalination and sewage stations, operation and maintenance services, lubricants, hunting equipment, sea and land sports, trips, financing services and installment sale services. These successes rendered the Group one of the economic symbols in the Kingdom of Saudi Arabia.

We are proud of our staff, work values and relations with our partners. They constitute the secrets of our success. We wish all a happy and successful new year.

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With the virtue of God, the direct support and concern of Engr. Mohammed Abdullah Alkhorayef, deputy chairman of Alkhorayef Group’s (AG) board of directors, accurate follow-up of Engr. Mohammed Amir, AG’s International Sales manager, and effective cooperation of the brothers and colleagues in the related sections and companies, AIEC is able to expand its marketing activities in Libya within a record timetable. AIEC achieved various objectives through signing several agreements and contracts, assigning an agent to follow up the activities and establishing a joint company to provide the after-sale-services and to be the core for the big jumpstart based on the mutual confidence and cooperation with the Libyan brothers responsible for the management of these giant projects. which receive special support to guarantee thesuccess through the staffs always-optimum choice.

The following are the most important, pivotal and vital activities and steps taken by HE Engr. Mohammed Abdullah Alkhorayef, AG deputy chairman, in his successive visits toLibya: HE Engr. Mohammed Abdullah Alkhorayef met Brigadier Gaith Ibrahim Algaith, the Libyan General Coordinator in his office at the Tripoli Hall. Engr. Salih Bunekhaila Hamid, secretary of Kufrah and Engr. Mohmmed Amir, AG’sInternational Sales manager, attended the meeting. The agreement was signed between AG, represented by

Engr. Mohammed Abdullah Alkhorayef, deputy chairman of AG’s board of directors and the Productive Agricultural Project Department at the Control Commission in Libya represented by Colonel Altahir Mohammed Alhazil, head of the Department. The agreement approved AG as the main supplier for the agricultural equipment, pumps, irrigationsystems and spare parts. AG approved the General Company for Reclamation and Agricultural Constructions (GCRAC) as the official agent in Libya for the irrigation units, agricultural pumps and equipment. Engr. Mohammed Abdullah Alkhorayef, AG’s deputy chairman represented AG in signing the award contract and its official registration in the agency record in Libya, and Engr. Salih Hussien Almahgouby, GCRAC general manager, represented GCRAC.A memorandum of understanding was also signed for the establishment of a joint company named “ Alkhorayef and Istislah Company for Maintenance and Spare Parts Services (AICMSPS)” headquartered at the Libyan capital Tripoli with an estimated capital of US$ 2 million. Engr. Mohammed Abdullah Alkhorayef represented AG and Engr. Salih Hussein Almahgouby represented GCRAC according to the Libyan Investment Law No. (5). The memorandum stated the provision of the after-sale-services for the maintenance of the heavy agricultural equipment, pumps, irrigation units, spare parts, technology transfer and training of national cadres.

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��Castrol has seen excellent growth over the last few years and this is expected to continue into not just the short term but also the long term future.This though is only half the story and some in depth work is also being done to review internal test. One area is that of supply chain where some opportunities for cost savings are foreseen. Long may this double pronged attack continue!!!


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Engr. Saad bin Ibrahim Al-samary, deputed member of the Saudi Installment House, which is one of Abdullah Ib-rahim Alkhorayef Sons Group of Companies, declared that SIH has opened a new section specialized in sale by install-ments for housing and com-mercial land plots as an addi-tional service within services of other installment sections in SIH.Mr. Alsamary added that, “ SIH is performing install-ment operations on the basis of Sharia profiting against a convenient installment sys-tem that includes most fieldsof life. The fields include the sale in installments for car, housing and commercial land plots as well as furniture of different kinds, big and small equipment, and electric and electronic devices.”He also said, “ On this occa-sion customers can submit applications for this conven-ient service through the main center in Riyadh in addition to SIH branches in Alkho-bar in the Eastern region and Buraidh in Qassim region.”On the conclusion he said, “ The purpose of introducing this new service is to satisfy the desires of the largest pos-sible number of customers easily and pleasantly.”SIH has already participated in the International Saif Ex-hibition in Alkhobar city for the activation of services in land plot installments in the Eastern region.

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HE Qaftan Almajaly, the Jordanian Ambassador, accompa-nied with a delegation from the Jordanian Embassy paid a visit to Alkhorayef Group of Companies (AGCs). He toured Alkhorayef Industries Company (AI) and Alkhorayef Com-mercial Company (ACC) and expressed his admiration of the technological and administrative progress in AGCs.HE Sheikh Abdulrahman, AGCs chairman of the board of directors, welcomed the Ambassador. The role of Alkhor-ayef in importing the irrigation systems for the Jordanian Albashair Company’s project in Sudan was discussed during the visit. AGCs own the second largest factory in the world for the manufacturing of center pivot irrigation systems and pumps. They have several international branches through which they are able to export many of their national products within the government of the Custodian of the Two Holy Mosques’plan to encourage national companies to manufacture and export.One of the most important exporting activities of Alkhorayef is the import of irrigation systems to Iraq through Jordan under the “Oil for Food Program.”

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Sheikh Saad Alkhorayef, ACC chairman of the board of direc-tors, urged employees in Castrol Section to exert more efforts and innovation so that the Company could be characterized with crea-tivity in the art of sales that draw the attention of customers, arouse their interest and honor the Com-pany.These words were stated in the directive speech delivered by his Excellency at the end of the annu-al conference of Castrol Section, which was held at the Meridian Hotel in Jeddah. It was the firstconference of its kind where all employees of Castrol Section had participated. Ian Yarwood, gen-eral manager of Castrol Section, reviewed the good achievements of the Section during 2003 and presented the sales work plan for the year 2004 in both the commer-cial and retail sections.All expressed their admira-tion with the accomplishments achieved in 2003 and lauded the work plan for 2004.At the end of the conference HE Sheikh Saad Alkhorayef honored the employees of Castrol Section who spent more than ten years in the Company

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HE Engr. Mohammed bin Abdullah Alkhorayef signed on Wednesday 31/12/2003 a guarantee document for financingAlkhorayef Industries’ exports with Engr. Yousuf Albasam, the SFD deputed member, at the SFD headquarter in order to cover the risks of not paying for the Saudi products exported all over the world.This is one of the latest services being presented by SFD through its Saudi Export Program, which help the Saudi export-ers expand their activities in export field and enter new markets with competitive terms and prices.

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Chad paid amicable visit to the head-quarters of Alkhorayef Commercial Company (ACC). HE Sheikh Saad Alkhorayef welcomed him.Cordial discussions were held during the visit that dealt with investment opportunities of Alkhorayef Group of Companies in the Republic of Chad, which currently witnesses remarkable economic and development activities.

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The first gathering of (SWCC) with similar industrial sectors and national manufacturers, which was under the slogan “ Opportunities and Capabilities of Manufacturing Spare Parts Locally” was held in Riyadh during 17- 18, Feb., 2004 at Riyadh Intercontinental Hotel. The Ministry of Water and Electricity was the supporter and sponsor of this gathering.Alkhorayef Co. participated in the scientific panels with a presentation by Engr. Fahd Fayie Alquhtany, sales man-ager for Industrial Pumps, Equipment and Engineering, who started talking about the method of manufacturing with Re-engineering, and about advanced services and technologies in the spare parts industry provided by the Company. Mr. Ken Lynx, the general manager of the Industrial Sector, concluded by talking about the special foundry for stainless steel the Company will establish during this year.Later Alkhorayef Co., being a participating sponsor in this gathering, was honored with a memorial shield handed to HE Sheikh Saad bin Abdullah Alkhorayef, ACC chairman of the board of directors.Finally, a discussion and recommendation session pre-sided by Engr./ Abdullah Alazaz, general manager of SWCC Operation and Maintenance, was held. HE Engr. Mohammed bin Abdullah Alkhorayef, the Chairman’sfirst deputy, participated in making the recommendations.

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Alkhorayef Commercial Company (ACC), creative as usual, still leads in the organization of its ambulant ex-hibition, which roamed the Kingdom for five weeks. The itinerary was as follows:•Wadi Aldwasir, Saturday 30/8/2003. •Alkharj, Monday1/9/2003. •Sajer, Saturday 6/9/2003. •Buraidah, Monday, 8/9/2003. •Hail, Saturday, 13/9/2003. •Tabouk, Tuesday, 16/9/2003. •Sakaka, Saturday, 20/9/2003. •Taberjal, Monday, 22/9/2003. •Riyadh, Saturday, Sunday and Monday 27-29/9/2003.In this event, the latest technology in the field of agri-cultural and industrial equipment was displayed. The difference between the genuine and false spare parts was also determined. The support from the after-sale depart-ment equipped with its fleet of services was extended to enhance the optimum long - time use of equipment.The new equipment in this exhibition was the new gen-eration of the D-12 Volvo Penta diesel engines, character-ized by economic consumption of fuel and oil, electronic control of fuel quantities to every piston, a high safety level of the engine which stops on emergencies, plus the ability to accurately make troubleshooting through spe-

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cial gauge devices. Other equipment was the John Deere tractors series 20 where 'extra power' term was used for them. Here the fixed power belt was improved by 52% more than the previous old model tractors; that is to say getting the required torque for operation, less engine noise, and improving the engine added power by 4% on low engine speed with less fuel.Other equipment was Almutawar automatic irrigation system distinguished with the international components and unique field applications. The following are some of its characteristics:- the highest possible efficiency, coordination and appli-

cation in irrigation.- The highest productivity with the least cost.- Suitable price and economic operation.- System components are especially designed to suit

the operational conditions inside and outside the Kingdom.

- Almutawar irrigation system is famous for its polyeth-ylene-lined pipes, which gives it a unique resistance of hot and hard water, steady water flow in the pipes throughout the years and a pipe guarantee of 10 years. It is exported to all parts of the world including USA.

- Flexibility in manipulating different irrigation applica-tions with high efficiency. Almutawar is available with different heights of towers, pipe diameters, sprinklers, outlets, pressure adapters, and engines of various speeds and down - going pipes with various lengths.

- Availability of special team of engineers supported by long irrigation application expertise.

- Availability of many after-sale-service centers (mainte-nance and spare parts.)

- Speedy supply.- A two-year guarantee against manufacture defects.Western turbine pumps were one of the leading equip-ment. New models with fans that suit varying depths, Gulf power generators, Rnadolf right-angle gears, Coverland field equipment and US Motors electric en-gines were displayed.The exhibition included a host of directors of different government departments, agricultural projects, farmers, specialized staff and university students. The message of reaching the farmers in their locations, introducing them to the optimum methods and use of water and maintain-ing high productivity was clearly shown.

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Five growing years

on Castrol

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now. Thus every second car being bought runs on Castrol lubricants.Castrol GTX is now well distributed in the puncture shops and is available in far-flung locations as Jizan, Hafr Al-Batin and Najran, etc.Ian - New GM optimistic on Cas-

trol’s futureCastrol is now headed in Saudi Ara-bia by A Castrol veteran of 25 years - Ian Yarwood, whose career has spanned Europe, Americas and the Middle East. Before taking up this assignment as General manager of Castrol Divsion, Ian was the Country Manager for Oman. Ian is very en-thusiastic about the future of Castrol in Saudi Arabia and feels that this is the best run operation in the Middle East- the setup is similar to a tradi-tional Castrol company. He loves the challenge of being the captain of the team that is working hard to make Castrol the leading brand in Saudi Arabia.

Restructure for market focusTwo years back, Castrol, Saudi restructured to give it a business focus instead of the regional focus it had earlier. This has been a ma-jor change for the Division and has led to a market focus and customer service through establishing two di-visions. The first division is for the commercial business and the other for the retail sales throughout the Kingdom. This change combined to the organization and new structuring has made Castrol more market-fo-cused. Shakil Rahman now heads the commercial business while Hassan Abdul Aziz heads the retail business.Shakil says that with the reorgani-zation, Castrol has become market-focused and can offer quick and dedicated services to the customers. This has improved customer service and it is easier to satisfy the need of demanding national accounts, which want same high level of service throughout the Kingdom.

A Marketing PushA year back, Castrol picked up Ali Saeed a hardcore Marketing Man-

ager from Nivea and Rothmans to accelerate its growth in the attractive consumer market. The Division is now running a test market campaign in Jeddah, Makkah and Taif. The campaign has a consumer promotion of a Grand Vitara and a Lancia for the trade. The new display stands in the selected outlets certainly improve visibility. Recently, Castrol had a big presence in the Jeddah Motor show and put up huge banners of BMW Williams Formula1 racing car. Ralph Schumacher’s larger-than-life im-ages were recommending Castrol.

Investing in InfrastructureKeeping pace with this rapid growth in sales, Castrol has invested in the infrastructure. Recently, Khobar branch moved into a new bigger office and also took up a new ware-house with facility for bulk oil stor-age. Currently, Jeddah head officeis being expanded to accommodate new recruits. Castrol signed up with Majdoui Transport to upgrade and expand its delivery service. Plans are also underway to acquire new cars and vans for the sales team. To en-sure better financial control, Ashraf Tayeh has recently joined as Finance Manager.

New Logo- new lookCastrol has changed its logo world-wide to make it look more modern and appealing to the customers. Re-cently, Castrol Division has carried out a major exercise to change its logo and design at most gas stations and outlets.2004-National Meeting to commu-

nicate the way forwardA national Castrol meeting is planned in January in Jeddah, where Ian plans to kick off his plan for 2004. This is the first time all Castrol Division employees will meet in one place and the plan for 2004 will be unveiled here. They will be encour-aged to exert more efforts and work with a team spirit to serve customers and satisfy their needs. The Castrol success story has just begun is Saudi Arabia.

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Al Kabir farm is located in the Hail region and is owned by HH Prince Sultan bin Mohammed bin Saud Al Kabeer. HH Prince Sultan is a founder member of Al Marai Co. Ltd., and is now the ma-jority shareholder.It is always a pleasure to visit Al Kabir farm. The farm began life back in 1985 as 2500 hectare unit producing wheat, in 1987 another 1000 hectares were added. In 1990 the focus of the business changed and gradually shifted from predominantly wheat production to forage crops. This change in focus coincided with a reduction in the Kingdom’swheat quotas and the ever increasing requirement for high quality forage crops for the Al Marai Dairy Farms. For those readers who have never been to the farm it is arguably the best farm in the Kingdom and must rate in the top 5% of the best farms in the world.I began by asking Steven how the change in crop-ping policy had impacted on the farm’s opera-tions.

SB:The farm is now 100% dedicated to forage crops and 2002 was the first time that we had grown maize silage. Alfalfa and maize for silage or grain are grown in rotation, this constitutes good farming practice rather than mono cropping. The change to forage production has meant an increase in associated pest and insect problems. Intensive cropping on an extensive scale encour-ages pests. A team of three agronomists is em-ployed to check the crops and to forecast potential problems. A large amount of management time is taken up with “walking” the crops. This proactive approach means that issues are dealt with immedi-ately before they become a problem. This atten-tion to detail has helped to achieve yields of up to 25 tons per hectare for alfalfa, maize grain 16 tons per hectare and 65tons per hectare of maize silage at 33% dry matter. Alfalfa is the main stay of the operation with the target being to supply high quality forage to the Al Marai Dairy Farms, this involves 25% of the workforce working at night to

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harvest the hay at the optimum moisture levels.I asked Steven about how the change in cropping policy had impacted on machinery require-ments.SB : Capital expenditure in machinery has obviously in-creased. Recent additions have included a fleet of high density big square balers which chop the hay at the point of bailing. This expenditure has to be measured and carefully considered and budgeted, at the end of the day the farm must produce a profit.There is much to consider and take into account before a pur-chase is made. We always look for a reputable brand capable of doing the job. The dealer is also a very important considera-tion. It isn’t much use having an expensive piece of equipment without aftersales support we can rely on if a problem occurs. We also like to standardize wherever possible. This obvi-ously helps with maintenance and means our mechanics have familiarity with the machines. Standardization also helps to keep our spare parts stock to a minimum. Recently we have been working with our main suppliers to establish a consign-ment stock of spare parts. The John Deere fleet now consists of twenty-two tractors and vari-ous implements including two of the new John Deere 3400 tele-handlers, a new 9320 (375 HP) and two new John Deere 20 series. We are very pleased with the John Deere product. Due to the nature of the business the tractors work very hard and clock a large amount of hours in relatively short period of time. These tractors offer the flex-ibility that the farm requires. We specify all new tractors with cabs and air conditioning, which ensures a comfortable working environment for our operators. Maintenance is very impor-

tant. Operators are expected to perform their own daily main-tenance checks. We operate a zero tolerance policy towards maintenance and servicing, any items damaged or worn are im-mediately replaced. Wherever possible we try to adopt one operator per machine which also helps to promote maximum care of the equipment. All the machines have a full service history which also includes oil sampling.The farm has recently purchased extended warranties and service contracts for the JD tractors with Alkhorayef Commercial Co. As Steven pointed out this allows him a comfort fac-tor especially with the reliance on high levels of new technol-ogy that is found in modern day equipment. It is very important that our machines are perform-ing well and doing the job they were intended for. Good main-tenance, extended warranties and service contracts ensure that the owner’s assets (HH Prince

Sultan bin Mohammed bin Saud Al Kabeer) are maintained to the highest possible standard to ensure longevity and good residual value. The farm em-ploys twelve technicians, fiveof whom specialize in the irriga-tion pivots, engines and pumps. The maintenance operation is managed by a highly skilled agricultural engineer with ex-tensive hands on experience working with machinery dealers in Ireland and Australia.Steven has spent eighteen years at Al Kabir and was promoted to Area Manager twelve years ago. I asked him about the success of the farm and how he felt about the future.SB : The success of the farm is due to the commitment, hard work and team effort of all the employees and the Prince’s will-ingness to embrace change and technological advancements in agriculture. The future is to continue to supply high quality forage to the Al Marai Dairies through the efficient use of water and to develop the local workforce within the organiza-tion. As this market expands, it will no doubt bring with it new challenges.Steven is originally from Lon-donderry in Northern Ireland. He is married to Denise with two beautiful daughters, Steph-anie and Natasha. The family have visited Saudi on numerous occasions and have thoroughly enjoyed the experience.If you ever have the opportu-nity to visit Al Kabir and talk to Steven you will not be disap-pointed. Steven is very proud of the farm and quite rightly so. It is as I said at the beginning of this article, one of the best farms I have ever had the pleasure to visit. I know from speaking to Steven that he and the staff are more than willing to offer ad-vice to local farmers based on their experiences at Al Kabir.

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In support of the develop-ment witnessed by the Cas-trol Section’s main office in Jeddah in the size of sales, Mr. Ian Yarwood, the Sec-tion’s general manager, de-cided to include Mr. Abdul-lah Bajama’an to the Sec-tion’s administrative team and effectively make use of his experience.

Mr. Ashraf Clora has joined the married couples commu-nity after he voluntarily en-tered the golden cage. Con-gratulation and best wishes.

Employees of Jeddah Marine Section held a farewell party for their colleague Mr. Frail Al-janbiyany on the occa-sion of his transference to the new company’sbranch in Tunis.Aljanbiyany expressed his thanks and gratitude for this gesture.

Mr. Ali Hasan Alsalman, of the Petroleum Section in Huwtah, was blessed with a lovely baby boy. He named him Hasan. Congratulation and may God bless him.

Mr. Abdulaziz Abdullah Al-lihaidy, Alkhorayef Opera-tion & Maintenance Compa-ny (AOMC) general manag-er’s secretary was blessed with an adorable baby girl that spread joy and happi-ness in the family. He named her Fajr. Congratulations.

Following a long waiting that lasted for seven years after the marriage, Mr. Ift-ikhar Ahmed was blessed with a beautiful baby boy, which spread joy and happi-ness in the family. Mr. Ift-ikhar thanked God and his colleagues in the Saudi Parts Center Co. who have lived with him throughout this long period of waiting and eagerness.

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Engr. Imad Alsarhan, of the ACC’s Sajer branch, was blessed with a lovely baby boy. Congratulations and may God bless him.

The Company held a number of farewell par-ties for its employees who left it after a long period of work. They were exemplary in per-formance.

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Alkhorayef Co. is the first company to manufacture spare parts for (SWCC) through Re-engineering Technology. SWCC was suffering from the constant wear of spare parts and the consequent rising costs due to the fact that each OEM is used to supply a certain kind of pumps to SWCC. Whenever the SWCC is in need of spare parts, the OEM raises the costs of each part to a limit almostequal to quarter of the pump’s total price.

As soon as Alkhorayef Co. had offered its capabilities to re-manufacture spare parts through Re-engineering method, SWCC responded positively in 1997 and gaveAlkhorayef Co. the green light. Many spare parts, of big sizes that weigh up to 6 tons, for different pumps have been manufactured and imported with competitive prices, which led SWCC to open the door for manufacturing spare parts for local as well asforeign markets. Alkhorayef Co. performs all works needed for manufacturing such parts by taking the final drawings and the pump-related information needed for manufacturing the parts up to the foundry stage, as there is no specialfoundry for stainless steel in the Kingdom. Alkhorayef Co. cooperates with the foundry in Britain to perform the founding operation, chemical and heat tests for these manufactured parts, as the manufacturing of these parts has to pass through the foundry stage that entails the help of foreign experts and advanced industrial techniques. Then they are sent to AlkhorayefCo. to import them to the SWCC. These procedures encouraged those responsible in Alkhorayef Co. to think of establishing a foundry for stainless steel in the Kingdom. For the first time a complete factory called WEPCO, which stands for“Western Engineered Pumps and Components”, will be established this year in Dammam. It will be furnished with modern equipment for taking final readings for any of the complicated processes. Laboratories specialized in corrosion and materials, which determine the chemical properties for any part to be manufactured, will also be equipped. Special founding equipment, chemical and heat testing devices consistent with the international standards will also be brought, and special relevantcertificates will be provided. Such a factory is the dream of every citizen who loveshis country and wishes to see this industry flourish.

By: Khalid Saud AlsubaieSales Engr. for Industrial

Pumps, Equipment and Reversal Engineering

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Documents

English File new 2 3/8/04, 11:05:43 AMalkhorayef.com/en/common/viewfile?FilePath=~/Uploads...Engr. Saad bin Ibrahim Al-samary, deputed member of the Saudi Installment House, which