Capital reduction does not affect expansions and new projects in the second half

The CEO of the Union Wire Factories Company, Nabil Al-Amir, said that the results of “Aslak” in 2022 exceeded the results of the year 2021, and increased marginally from the company’s expectations for the year 2022.

Nabil Al-Amir added, in an interview with Al-Arabiya, today, Thursday, that the increase in annual profits came as a result of higher revenues and improved profit margins in most of the company’s products.

The company achieved annual profits of 57 million riyals, an increase of 24% over 2021.

Aslak’s strategy is to focus on products with the best returns and in which they have a competitive advantage, which are wire products with their various products and uses,” according to the CEO.

In addition to wire products, which represent the company’s core experience, the CEO indicated the improvement in profitability margins for construction sector products related to reinforcing steel and floor mesh, and although it still has a size in the assortment of “Aslak” products, the company’s strategy in the past two years is to reduce reliance on these products for the conditions currently prevailing.

Nabil Al-Amir explained that the company’s activity in rebar products is not directly related to mega projects, such as companies producing rebar lengths, and the “Aslak” rebar product is linked to villas and residential buildings, while this sector has witnessed a slowdown since last year.

Regarding the impact of the capital reduction on the company’s expansions, the CEO of Aslak said that it was taken into account that the capital reduction would not affect Aslak’s expansion plans, whether in its current activity, acquisition, or participation in other activities.

He added that “Aslak” has some projects that will see the light soon, specifically in the second half of 2023, and are related to the construction sector closer to the needs of the market and constitute a source of income and real benefit from the upcoming vision projects, in addition to expanding the activity of wires as production capacities.

Nabil Al-Amir explained that these projects will take some time because supplying production lines globally takes more time than necessary, but expansions exist and their impact will be evident in the second half of 2023.

The profits of the Union Wire Factories Company increased in the fourth quarter of last year by 50% compared to the same period of the previous year, to reach 12 million riyals.