Everything flows.

Mr Abdulaziz Alaqeel, please tell us about ALSAD Modern & Advanced Company Ltd.
ALSAD was founded in 2010. The company operates in the realm of industrial production of plastic products and specialises in water containers. We started with screw caps, but due to market demand, we began manufacturing preforms a few years ago. ALSAD employs around 160 people and our factory has eight production lines for preforms and nine for closures. As of today, we process 50,000 tons of plastic granulate per year.

ALSAD has achieved remarkable growth in a short a time. I gather that further growth is planned?
You’re right. Our average annual growth rate has been around 30 per cent and we expect ALSAD to be able to keep growing at this pace in the coming three years. That’s why we’re putting three more production lines for preforms into operation and four more for closures before the end of this year.
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What have been the biggest challenges you’ve faced over the past thirteen years?
The steep growth curve has given us the most headaches. On the one hand, we had to scramble, to work very hard, to achieve the capacities we needed, and on the other, we had to ensure that our strict standards for quality were maintained without compromise. We have to thank our suppliers and technical partners for the fact that we have managed to grow while keeping our quality levels high. We will continue to do so in future.

How do you explain your extraordinary growth?
At thirteen, we are still relatively young in the market. ALSAD is part of Seqa Group, which also owns several water brands. In the beginning we only supplied our sister companies and we grew with them. With the expansion of our business activities beyond the group, we were able to benefit even more from the dynamics in the market.
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The demand for preforms and closures is rising around the world but growth like ALSAD’s is rather rare. What’s the market like in Saudi Arabia?
The Saudi Arabian market is strongly influenced by two factors. On the one hand, there are the climatic conditions that stimulate the water business. Our summer starts at the end of March and lasts until the beginning of October. During this period, it is very hot and the demand for water is correspondingly high.

The second factor has its origins in Vision 2030, the initiative launched by the Crown Prince eight years ago. It has led to numerous reforms and changes intended to advance the country, the economy, the quality of life, and many other areas. In the process, Saudi Arabia has opened its doors to people from other countries and to investors. This has resulted in significant growth in all sectors of our economy.

According to a 2022 study by IMARC Group, Saudi Arabia is the largest water market in the Middle East. However, the authors see growth not only in small but also in large volumes. Do you share these assessments?
Consumer behaviour in our market is definitely changing. Many people are coming to our country as a result of the opening. They bring their culture, mentality and habits with them. And these also affect water consumption. That’s why we at ALSAD assume that the demand for larger bottles will also increase here. But at the moment more than 50 per cent of our production is preforms for 330 ml water bottles of nine to ten grams.
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ALSAD has certainly achieved impressive growth. What is your vision for the future?
Our ambition is very simple: ALSAD should become the most important manufacturer of preforms and closures in the entire MENA region and should also be known for products of the highest quality. In order to achieve this vision in a targeted manner, we analyse our processes constantly, looking for ways to improve them.

How do you define quality?
For us, quality comprises three essential aspects. One, the quality of the raw materials is important. For this reason, we systematically check our suppliers and monitor the entire route of the granules from the manufacturer to our production lines. But quality also depends very much on the technology we use in production. That means we only work with the best equipment manufacturers in the world and we operate a complex internal control system. We are also ISO 9001 and ISO 22000-certified. This gives us the security of consistently producing uniform products, which is also part of quality. The third and very important aspect of quality is the training of our employees.

How do you find the right people?
ALSAD offers its employees a very progressive and appreciative environment. We invest a lot in their education and train them at our first-class facilities. We are convinced that the good atmosphere within the company is a greater incentive to work for us than just paying a little more money.

In which markets are you active?
We primarily supply within our group, which includes seven water producers in Saudi Arabia and the Gulf region. To achieve our vision, we are opening up new markets in Bahrain, Yemen, Iraq, Kuwait and Jordan. In addition, we have been exploring the markets in Ethiopia, Morocco and Egypt.
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ALSAD currently produces preforms in a variety of weights from 7.2 to 11.3 grams. Which product is your speciality?
We don’t have one product that outshines all the others. Our speciality probably lies more in the support we give our customers. By constantly optimising the weight of our preforms and caps as well as the bottle shapes, we save costs and create products that protect the environment. In recent years we have already achieved a great deal together with our customers. At the same time, I am convinced that even more is possible.

We have all learned from COVID how quickly the availability of raw materials can become a critical issue for a manufacturer. How is this challenge being handled at ALSAD?
Although one of the world’s largest granulate manufacturers is based in Saudi Arabia, we rely on two suppliers, as we do in every area of our business. In addition, we always make sure that we have enough raw material in stock. We also follow that practice with our customers’ products, always keeping a reserve in stock.

In addition to top brands such as Nestlé, Coke and Pepsi, more and more customers are demanding the use of recycled PET. How is ALSAD meeting that demand?
rPET is not yet allowed for the production of water bottles in Saudi Arabia. But as a responsible company in the plastics industry, we will do everything possible in the other areas of production until this regulation is lifted. And as soon as the regulations change, we will be among the first to use rPET and advocate for the recycling of plastic throughout the beverage industry.

In 2016 you put three 128-cavity moulds from Otto Hofstetter AG into operation together with machines from Netstal, and in 2018 you bought another 128-cavity mould from Uznach. Why did you choose the Swiss products?
That decision is directly related to our high quality standards for our products, a factor which we actively promote to increase our market share. We knew about the outstanding reputations of Otto Hofstetter AG and Netstal, which is why we included this option in our evaluation process. In the end we were convinced that the Swiss solution would be one of the best choices for our plans. And we have never regretted the decision because the moulds have been running faultlessly for over six years now.
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As a family-owned company, Otto Hofstetter AG focuses on the long term and can count on its loyal employees. What does this mean for you?
The relationship with our suppliers is not a one-off affair. A successful cooperation is more like a healthy partnership. It is important to us that the connection not only exists between the two managements, but also extends to the technicians in production. This is the case with Otto Hofstetter AG.

With best cycle times of just five seconds or less and with their maximum availability, the moulds from Uznach already meet your requirements. But where do you see room for optimisation?
Just as we at ALSAD continuously strive to improve, this is also the case at Otto Hofstetter AG. In terms of our cooperation, I always see continuous room for improvement in terms of injection moulds and service. With a view to our expansion plans, it would be very interesting for us if our Swiss partners were to build moulds with a higher number of cavities.

What will the ALSAD Modern & Advanced Company look like in a few years?
ALSAD will have continued to grow and will still be known in the market for making the highest-quality PET preforms and caps. In addition to the international brands that we already supply in Saudi Arabia, more brands will be added. And not just in the Kingdom, but throughout the MENA region.

Mr Abdulaziz Alaqeel, thank you very much for this open discussion. We wish you every success in implementing your plans and look forward to continuing on our path together.

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