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RIYADH: South Korea’s steel firm SeAH Group has partnered with Saudi Aramco to boost its expansion plans in the Middle East, according to the Korea Economic Daily.
The group’s special steel maker, SeAH Besteel Corp. has established the joint venture SeAH Gulf Special Steel Industries with the Saudi oil giant.
The JV is set to start building the factory, with an annual capacity of 17,000 tons, in the fourth quarter of 2022. Commercial operations are likely to begin in the first half of 2025.
“We will actively explore the Middle East market with various products such as stainless steel precision tubes and seamless stainless steel pipes,” said a SeAH Changwon official.
RIYADH: Saudi Arabian Oil Co., also known as Aramco, plans to complete Valvoline Global Products acquisition by early 2023, Mohammed Y. Al-Qahtani, Aramco’s downstream senior vice president, told Arab News.
In early August, the oil giant announced that it had signed an SR9.9 billion ($2.65 billion) equity purchase agreement to acquire the US-based company.
Because VGP is a leading worldwide independent producer and distributor of premium branded automotive, commercial and industrial lubricants and automotive chemicals, it perfectly fits within the company’s base oil portfolio and lubricant growth strategy, Al-Qahtani said.
With this acquisition, he added that Aramco would expand its research and development activities and its partnership with original equipment manufacturers. The buyout will also complement its line of premium branded lubricant products.
• With this acquisition, the official said Aramco would expand its research and development activities and its partnership with original equipment manufacturers.
• The buyout will also complement its line of premium branded lubricant products.
• VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, he said.
“Valvoline and Aramco will expand their existing partnership to ensure that Valvoline’s iconic brand is managed in a consistent and holistic manner,” he said.
VGP will acquire perpetual ownership of the Valvoline brand, trademarks and copyrights in the products sector, Al-Qahtani informed.
As the crude producer seeks to expand the brand globally, VGP’s robust manufacturing and distribution network, significant R&D capabilities, strong partnerships with major OEMs and 150-year brand recognition will benefit the company, he added.
Talking about Aramco’s plans for the VGP employees, Al-Qahtani said: “VGP employees will be part of a company with the experience and platform to drive the success of the business going forward. Aramco appreciates the benefits of the talented VGP team around the globe driving the long-term success of the business.”
Al-Qahtani further stated that this transaction contributes significantly to Saudi Aramco’s 2030 strategic target of selling finished lubricants.
He said Aramco would own the Valvoline brand worldwide after closing the deal. For retail services, Valvoline will hold the Valvoline brand globally, excluding China and certain Middle Eastern and North African countries.
Through a long-term supply agreement, Valvoline will also procure lubricants from Global Products.
Commenting on the acquisition, Sam Mitchell, Valvoline CEO, previously said that the sale of VGP represented the successful outcome of its strategy to unlock the full, long-term value of its strong, but differentiated retail services and global products businesses.
Mitchell added that he was pleased that the company’s global products team would have a strategic new home with Aramco to further grow the business while developing the brand into a global lubricants leader.
CAIRO: Egypt-based e-commerce fashion brand Dresscode is now operating in Saudi Arabia as it plans to become a global brand.
During an exclusive interview with Arab News, Mohammed Abdeldayem, CEO and founder of Dresscode, said that the company is focusing on empowering the Kingdom’s youth through its brand.
“We’re very focused on Generation Z or 18- to 25-year-olds; this is our core market. We came to Saudi Arabia because more than 50 percent of the population is within this age bracket. So there is a huge youth population,” Abdeldayem said.
Dresscode is not your typical fast-fashion brand as it focuses its business operations on sustainability, data, technology and affordability.
“Before Dresscode, we had on-ground stores; then we decided to build an online store that focuses on data analytics,” Abdeldayem said.
Abdeldayem explains that his staff focuses mostly on designs as they want to provide customers with at least 200 new styles a month.
Fashion is an ever-changing and fast-paced industry; when it comes to keeping up with what the customer wants and focusing on sustainability, Dresscode has balanced it perfectly.
Abdeldayem said that the brand has been able to move its model to a sustainable one by focusing on pre-orders with a considerable number of monthly designs.
“Why would I go buy this item in thousands? This is not what the young generation wants; the generation wants to be unique and special,” he added.
Partnering with about 50 factories, the company dramatically shrunk its batch size and focused on pre-orders using its unique technology.
“We had done more than 100,000 orders that were pre-ordered, which means that we had not produced it before it was ordered. We also use recycled yarns and fabrics in 50 percent of our production,” he stated.
Founded in 2019, the company now has over 15 in-house designers keeping up with the trend and from 500 to 700 orders per day.
“We’re doing between 500 and 700 orders a day. And it could reach 1,000 within the next two or three months. So, this is why we have been given the appetite to look into other markets,” he said.
Abdeldayem explained that the Kingdom’s youth is now the main target for the company, stating that 10 percent of its current orders are coming from the Kingdom.
“Part of our research was that the average Saudi national buys around 70 to 80 new items a year. So, this is a big market for us, compared to the Egyptians, who buy 30 to 40 items per year,” he stated.
We came to Saudi Arabia because more than 50 percent of the population is within this age bracket.
Mohammed Abdeldayem, CEO and founder of Dresscode.
Abdeldayem is also very intrigued with the change in the Kingdom as the population is absorbing new cultures with open arms.
“We’re working closely with influencers now in Saudi Arabia and creating influencer brands to be sold on our platform. We could do so many things to localize the fashion industry,” he added.
Moreover, the company received its first funding back in 2021 from Egypt Ventures, a collaboration between Saudi Fund for Development and the Egyptian Government. It received $500,000 and massive support from Saudi investors.
“We’re going to Saudi because the Saudi Fund for Development invested in our company. So we’re paying back as well, and we have huge support there in Saudi Arabia,” Abdeldayem added.
The company is planning to become a global brand with other expansion plans in Africa and Gulf Cooperation Council countries.
“After Saudi Arabia, Dubai will come, followed by Bahrain and other neighboring countries. We also plan to enter Africa. Our sister company already has an on-ground operation in Kenya. So, it’s easy for us to establish all the logistics and all the needs,” Abdeldayem added.
The company is also planning to raise series A funding to get $5 million and establish an office in the Kingdom.
BEIJING: China’s exports of very-low-sulfur marine fuel rebounded 13.22 percent in July versus June as the country’s merchandise exports recovered, but still stood nearly 9.69 percent below the year-ago level, customs data showed on Saturday.
Exports of very-low-sulfur fuel oil, measured mostly by sales from China’s bonded storage for vessels plying international routes, were 1.60 million tons, data from the General Administration of Customs showed.
That compared to 1.408 million tons in June and 1.766 million tons a year before. China’s merchandise exports in July grew 18 percent on the year in the fastest pace this year, an encouraging boost to the economy as its struggles to recover from a COVID-induced slump, but weakening global demand could start to drag on shipments in coming months.
Foreign trade container throughput at eight major Chinese ports rose 14.5 percent in July, speeding up from the 8.4 percent growth in June, according to data from China’s port association.
But strict COVID-19 measures and rare heat waves in eastern and southern provinces, where the country’s main export hubs are located, crimped factory output, thus constraining shipments.
Weaker-than-expected growth in merchandise imports, up only 2.3 percent on the year, also capped further growth for the marine fuel. VLSFO exports for the January-July period reached 10.69 million tons, down from 11.52 million tons in same period of last year.
Fuel oil imports into bonded storage, including both high-sulfur and low-sulfur products, fell nearly 57.96 percent on the year to 0.31 million tons.
CAIRO: Egypt’s president on Thursday appointed a caretaker governor of the central bank, the president’s office said, a day after the bank’s chief resigned amid a grinding economic crisis triggered by Russia’s war on Ukraine.
According to a statement, President Abdel Fattah El-Sisi named Hassan Abdalla to succeed Tarek Amer, who had held the post since 2015. The appointment still needs to be ratified by the state-controlled parliament, which is in recess until October.
In a meeting with the new appointee, El-Sisi stressed the importance of upgrading the country’s monetary policies to cope with global economic changes and to diversify Egypt’s sources of foreign currency, the statement also said.
Abdalla, 62, had worked as a banker for almost four decades in Egypt until he became the CEO of the Arab African International Bank in 2004. In May 2021, he was appointed the chairman of United Media Services, a state-controlled media conglomerate.
On Wednesday, El-Sisi accepted Amer’s resignation and named the outgoing governor a presidential adviser. The president’s office offered no explanation for Amer’s resignation.
Amer had traditionally been seen as in the camp that supported the pound’s depreciation as a way to secure a new loan from the International Monetary Fund in order to address the growing budget deficit.
His resignation came after key ministries were reshuffled on Saturday, a Cabinet shake-up approved by parliament in an emergency session. A total of 13 ministries were affected, including health, education, culture, local development and irrigation. The country’s minister of tourism and antiquities also was replaced.
Analysts said the CBE may have been conservative after the change of governor, even as Egypt’s economy grew faster than expected in the 2021/22 fiscal year and inflation surged.
The CBE’s Monetary Policy Committee (MPC) said it left its lending rate unchanged at 12.25 percent and its deposit rate at 11.25 percent.
“The MPC decided that keeping policy rates unchanged remains consistent with achieving price stability over the medium term,” it said in a statement accompanying the rates decision.
A Reuters poll of 15 analysts taken prior to Amer’s resignation had expected a half a percentage point increase.
“In its decision to maintain policy rates unchanged today, the MPC takes note of its policy rate hikes in its previous meetings,” the MPC added.
The Egyptian currency has slid to more than 19 Egyptian pounds to the dollar. That followed a central bank decision allowing the currency to depreciate by around 16 percent in March to try to stem a growing trade deficit.
Russia’s war in Ukraine has been deeply felt in other ways in Egypt. The Arab world’s most populous country is also the world’s largest wheat importer that sources around 80 percent of it from the Black Sea region.
Following Russia’s invasion in late February, the price of wheat and other grains skyrocketed, as did the price of fuel. Although prices have come down somewhat, the cost of grains remains at least 50 percent higher than before the pandemic in early 2020. Furthermore, the cost of shipping to export those grains through the Black Sea is high.
Inflation in the country of 103 million people reached 14.6 percent in July, increasing pressure on lower-income households and everyday necessities. Around a third of Egyptians live in poverty, according to government figures.
The central bank raised rates by 2 percentage points in May and 1 percentage point in March to combat inflation after Russia’s invasion of Ukraine and US interest rate hikes.
“The committee likely wants to proceed cautiously during the transition period,” said Sara Saada of CI Capital.
Egypt’s gross domestic product grew by 6.2 percent in the fiscal year that ended on June 30, up from 3.3 percent a year earlier.
This was mainly driven by the private sector, particularly non-petroleum manufacturing, tourism, and trade, the MPC said, citing data from the first nine months of the fiscal year.
Inflation rose to 13.6 percent in July from 13.2 percent in June, its fastest since in March 2019.
At its last meeting on June 23, the MPC said that for the next six months it would tolerate elevated inflation, caused mainly by the Ukraine crisis, as the economy grows more slowly than expected.
“We expect no changes in the policy rates until the new CBE leadership settles in and takes stock of the situation,” said Allen Sandeep of Naeem Brokerage.
Esraa Ahmed of Pharos said she believed the MPC left rates unchanged for fundamental reasons, including a gradual decrease in global commodity prices and less pressure on the budget.
“We had that view even before the change in governor,” she said.
Meanwhile, an investigation by the country’s public prosecutor said in a statement Thursday that a fire in a Cairo church last Sunday that killed 41 people, including 15 children, was the result of a short circuit in the building’s generator, a backup source of power.
The tragedy at the Martyr Abu Sefein church in the working-class neighborhood of Imbaba threw the country into mourning but also raised questions about emergency response, fire safety codes and restrictions on building houses of worship for the country’s Christian minority.
DUBAI: Agthia, a food and beverage company based in Abu Dhabi, has saved 97 million dirhams ($26.4 million) in 18 months as part of its Strategy 2025 program.
Alan Smith, CEO of Agthia, told Arab News that the company had committed to saving 200 million dirhams over five years as part of its long-term strategy envisaged in 2021.
“The company saved 97 million dirhams in just 18 months,” said a beaming Smith, adding that the company plans to become a leader in the Middle East, North Africa and Pakistan by 2025.
The group plans to expand into consumer business and have a consumer-centric mix of 75 percent of revenues.
In July 2022, the company’s board approved the acquisition of a strategic 60 percent stake in Auf Group, a specialized healthy snacks and coffee manufacturer and retailer in Egypt.
Agthia has also received its board’s approval to acquire 60 percent of Egyptian coffee maker Auf Group as it expanded its footprint in the North African country last month.
The company acquired five companies in 2021, which included Al Foah Dates in the UAE, Al Faysal Bakery & Sweets in Kuwait, Nabil Foods in Jordan, Atyab in Egypt and BMB, a fully integrated food company in the UAE.
And these acquisitions contributed 73 percent of the total revenue for the six months ending June 30, 2022.
Agthia Group’s net revenue grew 51 percent year on year to 2 billion dirhams in the first half of this year, according to the company’s results.
Smith said that compared to a few years ago, Agthia’s revenue was 2 billion dirhams on a full-year basis.
The company saved 97 million dirhams in just 18 months, said Smith, adding that the company plans to become a leader in the Middle East, North Africa and Pakistan by 2025.
“I think the number is about 73 percent, so we’re very close to our long-term commitments,” he added.
Due to the seasonality advantages the company sees in the snacking business and the growth in the protein business. Smith said the contribution of the consumer business division to the overall revenue will be at least 75 percent on a full-year basis, if not more.
Before acquiring five companies last year, Agthia’s revenue was split 50-50 between consumers and agribusinesses.
Besides the brands acquired in 2021, the consumer business includes Yoplait dairy products and a slew of water and beverage brands such as Al Ain and Al Bayan. On the other hand, the agribusiness produces Grand Mills flour and Agrivita animal feed.
“What we are seeing in quarter two is the consolidation of all five acquisitions we did last year,” he said.
According to Smith, Agthia generates 50 percent of its revenue from the UAE and the rest from other parts of the world.
The company has also taken cost optimization measures to increase its revenue and improve profitability. For instance, the confectionery and healthy food brand BMB had a manufacturing facility each in Dubai Investment Park and Jebel Ali.
After the acquisition, Agthia closed one of BMB’s facili- ties and consolidate it into an existing Agthia manufacturing facility.
“It was a rented facility that we shut down and moved that production into Agthia’s own facility,” Smith said.
Smith said Agthia’s financial results and Strategic 2025 plan are on track despite market volatility.
Agthia is currently setting up a new manufacturing unit in Saudi Arabia for Nabil Foods, the firm’s protein brand, to meet the growing demand for the product line from local customers. Earlier this year, the company announced the greenfield investment of 90 million dirhams to set up the facility.
According to Smith, the facility’s design is completed, and the scope of work for tendering has been outlined. He is now awaiting necessary approvals for the Saudi manufacturing facility from the competent authority.
With this project, Agthia will be able to increase its footprint in the Kingdom and support its strategy to become one of the most prominent players in the Middle East and North Africa consumer packaged goods market.