Report on Management Profile of Arkan Real Estate

Corporate Overview

History

Arkan was established in 2005 in the UAE. The 51% of its ownership is related to the General Holding Corporation (SENAAT) which is further owned by the Abu Dhabi Government. (Arkan, 2015) It is required for promoting sustainable industrialized activities in Abu Dhabi. At the same time, the balance shares are listed and mentioned on the ADX (Abu Dhabi Securities Market). The holding corporation of Arkan (SENAAT) was established in 1973 which became a public entity in 1976. (Senaat, 2015) The formation of Arkan was done through the combination of Emirates Block Factories and Emirates Cement.
The construction of Al Ain cement factory under Al Ain Cement is considered as one of their crucial milestones and it acts as an integral part of Arkan and it is one of the biggest fully integrated cement plants in the Middle East. It was inaugurated by His Highness Shaikh Hamed Bin Zayed Nahyan on the date of 20th November 2014. It was a crucial milestone due to the fact that it increased the cement production capacity of Arkan from 900,000 tonnes of clinker and 4.5 million tonnes of cement to 4 million tonnes of clinker and 5.6 million tonnes of cement. Currently Arkan operates 6 manufacturing factories lying between Abu Dhabi.
Vision

As there is an increase in the negative impacts of construction in this world; there is a need to manufacture sustainable products which are long lasting as well as eco-friendly. Here, Arkan enters with their sustainable vision where they thrive upon building a vastly integrated business of building products.
The vision of Arkan is to set a benchmark which would make Arkan the partner of choice in the construction materials industry. This vision signifies the future path of Arkan to make a company of choice depending on the level of quality that it achieves. (Arkan, 2013)
Mission

The mission of Arkan is to become a true partner for their clients and generate value for the shareholders and the community. The value is to be created based on social and environmental responsibility. This value creation will also take the capability of human resources and operational excellence. This mission takes into account the value creation of the company and what it takes as a basis for the measurement of quality. To align the mission with the welfare of the society and the shareholders is noble and depicts integrity.
Goals

Arkan has determined goals which it strives to achieve for success and growth. These goals are:
• To produce world-class cement by utilizing environment friendly technologies and products.
• To achieve a benchmark of health and Safety through zero accidents
The goals of Arkan are in alignment with their vision of achieving a benchmark of quality and aim towards a safe working environment.
Core Values

The core values of the company epitomize and depict the central characteristics of the company. Arkan has four primary core values which signify its character. They are:
• Quality
• Integrity
• Passion
• Working Together (Arkan, 2013)
Quality as a core values is important as Arkan is a manufacturing company. It should be one of their characteristics that it manufactures quality products and strives towards maintaining and improving the quality of its products.
Integrity is a vital characteristic of Arkan. It implies that Arkan has strong moral principles which it displays in its conduct. It relies on these principles to deal with other companies. Integrity has to be a core value for any company for establishing character.
The passion of Arkan displays the zest and determination the company has and puts forward in its actions and processes. The passion as a core value also signifies the will of the company to perform better and achieve higher future goals along its path to success. The passion of Arkan is necessary for the company to take it to a higher podium which can be achieved by reaching international recognition.
Working together is very important for Arkan in order to achieve success. Working together shows a presence of coordination inside Arkan and the bond that the employees of Arkan possess while working for the company which optimizes the performance and helps build a greater character. Working together also shows that it’s integral parts that are the Al Ain Cement and Emirates Cement blocks, work together to take Arkan to further success.

Company Profile

Arkan Building Materials Co PJSC represents a public joint company which specializes in the production and manufacturing of products related to the building construction. They serve for regional and local industries related to the construction field. There are various portfolio industries related to Arkan which are named below as:-
• Emirates Cement Factory
• Emirates Block Factories
• ANABEEB Pipes
Here, Emirates Cement Factory represents one of the renowned cement manufacturing companies in UAE. At the same time, Emirates Blocks Factories are represented as the producer of top quality concrete block with their companies located in Al Ain and Al Mafraq. Finally, ANABEEB represents one of the renowned manufacturers of plastic bags and pipes. These pipes are manufactured from PVC and GRP materials. Currently, Arkan is working upon the establishment of Al Ain Cement Factory which will be the largest clinker and cement manufacturing company. The company will have the capacity of producing 4.5 million cement tons and 3.1 million clinker tons per year.
Arkan is also looking forward to the development of a high-capacity dry mortar plant which is located in Al Mafraq. They have named it as Arkan Dry Mortar which shall indulge in the production of a wide assortment of dry mixture products. Moreover, Arkan is one of the major and active partakers in investments related to building materials all across the UAE. However, they have decided to concentrate majorly upon the development opportunities in Abu Dhabi region.

Ownership Structure

Being a public joint stock company, it works operates with limited liability and widespread ownership. The structure of ownership begins with the ownership of the government of Abu Dhabi over the General Holding Company (SENAAT) which is the developer and owner of key industrial assets. The Government of Abu Dhabi holds a 100 control ownership over the general holding company. The ownership of the general holding company is spread over four sectors. These four sectors are building material industry, food and tannery industries, steel and basic industries and business development.
Arkan falls under the wing of building material industry. Arkan holds 51% control ownership of the company while rest of the control lies with the government of Abu Dhabi. Ducab is also a part of the building material industry which has 50% ownership over itself. The oil and gas wing of the general holding company covers NPCC which fabricates steel structures for the oil and gas industry. It has 100% control over itself. The food and tannery industries covers Al Foah. Al Foah covers the date palm tree sector in UAE which has 100% control ownership. Under the business development wing, there is Abu Dhabi Basic Industries Corporation which was created to facilitate the expansion of sustainable industry in Abu Dhabi.

Leadership Position

Arkan has a very reputed and leading ownership position in its sector in the construction and building materials structure in UAE. Arkan is the number 1 cement manufacturer of UAE. It has achieved this through perseverance and performance and also by delivering quality products. Along with that excellence, it is also UAE’s 2nd oldest cement manufacturer. This depicts the experience Arkan has in the industry. Arkan has its involvement in 3 sectors which are cement, concrete blocks, and pipes. The amount of diversity and the range of industries shows how Arkan is involved in focused in the construction materials sector. It also shows that it is involved in major industries in the sector and has a superior level of command and influence over the processes in the construction materials sector.
Arkan has 9 plants in multiple locations in UAE which is commendable as it has its business spread over different areas of UAE and can develop its business further by having more reach. By focusing on its individual industries, Arkan is also the number 1 concrete block manufacturer in the Abu Dhabi Emirate. It means that it has prowess over its individual industries. Arkan is the leading CGR and PVC Pipe & Paper Bags manufacturer and exporter in the whole Middle East which is an outstanding achievement by leading in performance and growth in the complete market sector of Middle East.
There are many reasons behind the secret of its success. One of the reasons being a consistent value creating strategy which has led Arkan to achieve the levels of success in multiple industries in the construction building materials sector. Another big reason is focused investment in targeted markets based on a long term growth. This reason justifies the place it has achieved by years of experience and excellence in the market sector. Arkan was also ranked 33rd among the top 50 UAE companies recently by an Arabian business magazine. Other than that, it also signed an MOU with Etihad Rail for developing more efficient transport solutions. This piece of recent news is significant as it shows that future prospects of Arkan are bright due to the initiation of a big project with the government. This MOU was signed 29th September, 2011.

Business Portfolio

As Arkan Building Materials is a construction material production company, the portfolio of the company will include the factories which produce the raw materials that Arkan sells as a commodity. The integral commodity of construction materials is cement. Arkan has two cement factories under its wings. Emirates Cement factory in Al Ain manufactures cement. The production capacity of Emirates Cement factory is 1.1 million tonnes per year. The Al Ain cement factory is one of the companies that also produces cement in Al Ain. The rate of productivity of Al Ain Cement factory is 4.5 Metric tonnes of cement annually.
Another prominent sector of production for Arkan is the construction of cement blocks. There are two facilities which produce concrete blocks. The Emirates Blocks Factory in Al Mafreq produces 125,000 blocks per day. The other facility is Emirates Blocks Factory which is situated in Al Ain. It produces 120,000 concrete blocks per day. The sector for the production of pipes is handled by ANABEEB pipes. This factory produces plastic pipes both of GRP and PVC variety.
There was a recent addition to the myriad of factories of Arkan. The construction of a mortar plant which cost a 100 million AED. The Arkan Dry Mortar Factory will be situated at in Al Mafraq with the production capacity of 1000 tonnes of mortar a day. There is also a provision for a limestone plant in Al Ain. It is determined to have a productivity rate up to 1000 tonnes of quick lime and hydrated lime daily.

Risk Assessment

As Arkan Building Materials Co. is Joint company with wings which manufacture an array of construction materials like cement blocks and pipes, there have be considerations about the risks involves in the factories which manufacture these materials. As Arkan undertakes the production of construction materials, it has facilities like factories which produce these materials and Arkan manages its operations and processes. It also handles the finances of the companies and the dealings with other companies regarding contracts at the manufacturing of construction raw materials has to rely on real estate companies or contractors which buy these materials. This further clarifies the need to also assess the risks that can arise under these circumstances.
The risks that can be categorized under the factories will be related to accidents that can occur while manufacturing construction raw materials in the machinery or in the factory. Those factors have to be taken into considerations by analysing probable hazards in the facility and the machinery. As Arkan also manages the finance related operations and processes of the company the hazards related to finances, markets which include their rivals will also be included in a separate risk assessment.
The risks have to be collected and analysed. This analysis will ponder over the implications, effects and the aftermath of the risks. The risks have to be categorized on the basis of the intensity of their effects, the probability of their occurrence, and the aspects of the company, the internal departments and the impact of these risks in case they occur. The data recorded in the risk assessment plan will help in preparing a risk mitigation plan. The risk mitigation plan will be prepared for taking steps when a particular risk event occurs and what should be the steps according to the particular risks. This risk mitigation plan will act as an action plan for crisis events. This plan should always be in the possession of project managers (operations manager) which observe and overlook the work in progress.

Skills

Posted on

March 7, 2018

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