Brief about Kuwait Cement Company
Established in 1968, Kuwait Cement Company (KSCP) is a Kuwaiti Public Shareholding Company. Since its inception until the present time, the Company has been operating according to strategic planning as well sharp insight and distinct feel to the needs of the local market and clients. The Company has contributed profoundly to the progress of the industrial and urban renaissance in the county since the sixties, the matter which enriched its experience in various industrial and investment domains. Moreover, the Company has always been marked by offering new products to the local market and growing progressively in terms of size of production and product quality, relying on its expertise, long history, numerous achievements and great clients’ trust in its high-quality national products.
Key notes about Kuwait Cement Company:
- It was established pursuant to an Amiri Decree on 05/11/1968, with a capital of 2.5 Million Kuwaiti Dinars, which was increased gradually until it reached at present 73.4 Million Kuwaiti Dinars, paid in full.
- It is considered the only industrial Company in the country that produces the clinker and manufactures the cement in a complete manner.
- The Company’s capital is owned by:
– Government of the State of Kuwait represented by the Public Authority for Investment, which is represented by three members in the Board of Directors.
– National Industries Holding Group represented by two members in the Board of Directors.
– Al-Rashed Trading, Industrial & Contracting Company, represented by one member in the Board of Directors.
– The remainder is citizens, investment companies, portfolios and national institutions. The Company is listed on Kuwait Stock Exchange and is subject to the law of Public Fund, and it is required to submit regular reports to the Audit Bureau.
- The Company has constructed two kilns for the production of clinker (the raw material used in cement manufacturing). The first kiln began operation in year 2001, while the second in year 2013, together with the associated mills, heat exchangers, clinker storage silos, and other advanced technological equipments and machinery.
- The Company established three Kuwaiti closed shareholding companies as subsidiaries, which are Shuwaikh Cement Company, Amwaj International Real Estate Company and Kuwait Cement Ready-Mix Concrete Company. The objective of doing so is to complement the purposes for which the Company was incorporated, and in line with its Memorandum of Incorporation and Articles of Association. The Company also constructed a plant for the storage and sale of the bulk Ordinary and Resistant Cement Type 5, which is situated at West Shuaiba District – Abdullah Port, with operational capacity of 6000 tons / day with the aim to facilitate access for large number of clients to receive their needs of bulk cement manufactured in our plants and to provide them with better services.
- Management of the Company is assumed by a Board of Directors comprising ten members. The Executive Management is headed by a Chief Executive Officer and his deputy, and both work on implementing the Board’s policy in accordance with the Company’s purposes and articles of association. Moreover, the Company lends great attention to attracting larger number of national manpower, both administrative and technical, so as they would assume their role in the development and progress of the industrial sector in the country.
The march of Kuwait Cement Company over a span of 50 years:
|1968||Kuwait Cement Company (K.S.C.) was incorporated pursuant to an Amiri Decree, with a capital of KD. 2.5 Million paid in full.|
|1972||The Cement plant in Eastern Industrial Shuaiba Area was established with a production capacity of 300 Thousand tons annually, comprising Ordinary Portland Cement and Sulfate Resistant Cement Types II and V.|
|1978||Commenced operation in the first and second expansions of the Gray Cement Plant to increase production capacity to 1,350,000 tons annually, by adding three mills.|
|1979||Operated the plant to produce White Cement, with a capacity of 75,000 tons.|
|1983||Established a company under the name of Shuwaikh Cement Company (K.S.C.) Closed, with ownership of 99.55% of its capital which amounted to KD 200,000/-. Among its main purposes was to import bulk cement of all types and keep it in silos for sale as bulk or packaged, and trading the various types of cement, as well as other purposes as set forth in the company’s Memorandum of Incorporation and Articles of Association.|
|1984||Operated the third expansion of the cement plant, by raising production capacity to 2,070,000 tons annually, of Ordinary Portland Cement as well as Sulfate Resistant Cement Types II and V.|
|1991||Resumed the production after liberation of Kuwait.|
|1994||Signed a contract with the Swiss company PEG S.A. to provide consultancy services for the project of constructing a kiln to produce the Clinker, with a capacity of 1.8 Million tons together with its associated handling equipment at Shuaiba port, conveyor belts and silos for storage and feeding.|
|1995||Signed a contract with the contractor (Al-Zabin International Group) to execute the project of constructing the new headquarters for the company, titled the (Cement House).|
|1997||Signed a contract with the Iranian company (I.C.E.C.) to convert one of the old cement mills to produce the White cement.|
– Shifted the company’s headquarters to the Cement House building.
– Signed a contract with the Danish company, F.L. Smith A/S and others to supply and install the equipment of the new cement plant for the production of the Clinker.
|1999||Completed executing the expansion of the White Cement Plant, thus increased the annual production capacity to nearly 175 Thousand tons per year instead of 75 Thousand tons.|
|2000||Signed an agreement with the Kuwait Foundation for the Advancement of Sciences on the evaluation of raw materials to produce Portland cement at various zones in the State of Kuwait.|
|2001||– The Company received a Certificate of Quality for its Ordinary and Resistant Portland Cement from the Public Authority for Industry.
– Began operation of the first kiln for the production of Clinker with a capacity of 1.8 Million Tons annually (5500 Ton/day). Also, began operation of the conveyer belt for the raw materials from Shuaiba port directly to our plant with unloading capacity of 1500 Ton/day using the ship unloading equipment placed on Berth No. (19) at the said port to transport the ship-load of raw materials automatically and directly to our plant, and this system is considered amongst the most efficient in the world for handling raw materials.
– Selected a new logo for the Company, which is still in use until now on all its official documents.
|2002||Acquired Shuwaikh Cement Company, which used to belong at that time to “Kasarah Company” in Fujairah Emirate, together with all its equipment, machinery, engines, stone crushers, and buildings for a value of 16 Million Emirate Dirhams, and was given the new name “Shuwaikh Stone Crusher”, with the aim to make available a reliable source of limestone required for producing the Clinker using the kiln at the Company’s plant in Shuaibah district.|
|2003||Obtained a license for Shuwaikh Cement Company to open a branch in Fujairah Emirate, to practice its business of producing the limestone and gravel using “Shuwaikh Stone Crusher”, with a capacity of 4000 Tons/day and increased gradually to reach 12000 Tons/day.|
|2004|| – Executed the project of increasing the production capacity of the gray cement’s mills, by adding (3) pre-grinders.
– Executed the complementary bypass project and installed its equipment, which resulted in improving the first kiln’s production, and increased the process of feeding the raw materials, hence raised the production capacity to 7200 Ton/day instead of 5500 Ton/day.
|2005||Established a company in the name of “Amwaj International Real Estate”, aiming to be the pool for all its properties, and to improve and develop the performance of such properties, as well as other purposes in line with the stipulations of its Memorandum of Incorporation and Articles of Association.|
|2006||The Company established “Amwaj International Real Estate Company”, with the aim to be the required pool for its real estates, and to improve and develop the performance of such real estates, as well as other purposes in accordance with the stipulations of its Memorandum of Incorporation and Articles of Association.|
|2007||The Company’s Board of Directors approved execution of the project of the second line for the production of Clinker, which raised the capacity from 1,800,000 to 2,500,000 Ton/year i.e. from 5,500 to 8,000 Ton/day, using the fast-track system, and at the same location of the cement plant in Shuaiba so as to cover the difference resulting from expanding the milling capacity.|
|2008||– Production of advanced type of cement called “Gray” cement for construction, which was launched in the local market, and can be used in all construction works excluding the concrete works.
– Signed a contract with one of the American consultancy companies to design the construction and civil works for the project of the second line for production of Clinker with a capacity of 5,500 Ton/day. Also, signed a contract with one of the European companies to supply the main equipment including the kiln and its accessories. The Company also awarded the construction and civil works of the project.
– Signed a contract to purchase a rotary cement mill with its accessories, with a capacity of 150 Ton/hour i.e. 3000 Ton/day. Also, signed a technical consultancy contract for supervising the execution of the civil works and installing and commissioning the new mill and its accessories. The installation, civil and steel works for the new cement mill were completed, and the production capacity thereto is One Million Ton/year (115 Ton/hour) of Ordinary Portland and Sulphate Resistant Cement Type V, thus the mills production in the plant was raised to (16) Million Tons of cement daily.
|2009||The production capacity of the plant arrived at (3.8) Million Tons of Ordinary Portland and Sulphate Resistant Cement Type V, and the Gray Cement (for construction).|
|2010||Kuwait Cement Company established an industrial company titled “Kuwait Cement Ready-Mix Concrete (K.S.C.)”, with a capital amounting to Kuwaiti Dinars 5,000,000/-, paid in full. The Company’s ownership in this new company is 99.844%. The purposes of this new company include: Manufacture and sale of ready-mix concrete, and importing all raw materials required for that purpose. Also, import, export, sale and purchase of sand and cement.|
|2011|| – Kuwait Cement Company acquired ISO 9001:2008 Certificate for Quality Control, which confirms the large trust its products enjoy due to being in line with the highest levels and standards of quality.
– On 01/03/2011, the Company’s capital was increased through underwriting in the new capital increase, and after adding the bonus shares of 15% the capital increased from KD. 60,729,099 to become KD. 73,330,387.
– Upon decision by the Board of Directors to set out rules for stability and steadiness of supply of raw materials to the Company’s plant in East Shuaiba Industrial District, since they are vital for cement manufacturing, a long-term contract was signed with Rack & Rock Company in Fujairah Emirate – United Arab Emirates, to purchase and receive millions of tons of limestone, which is essential for the production of Clinker and manufacture of cement. The said contract stipulates supplying the Company with these materials for a period of (Twenty years). The contract value amounts to UD. Dollars 500 Millions.
– Kuwait Cement Ready-Mix Concrete Company, subsidiary of the Company, began production in its plant at Sulaibiya district. Production commenced with the GGBS material, which is ground granules from the furnace slag blast and used by mixing it with the ordinary cement to produce slag cement, as it is on demand heavily for the mega development projects such as towers, high-rise buildings, bridges and the like.
|2012|| – Kuwait Cement Ready-Mix Concrete Company, subsidiary of the Company, began production in its second plant at Doha district. It also operated its third plant at Sulaibiya district, which is equipped with the latest technological means for the production of ready-mix concrete.
– At the end of year 2012, the Company began applying the system of sales and disbursement through computer, and linked its sales system directly with the disbursement system.
– As of the beginning of the year, the Company began operating the storage station and packing of bulk cement at West Shuaiba Industrial zone (Abdullah Port), by installing 5 silos with storage capacity of 1200 Tons for each silo, hence enabled those with urgent orders to receive their needs of cement easily since the station is located outside the main gate of Shuaiba zone.
|2013|| – The Company operated the ready-mix concrete plant at Al- Shadadiyah district (University), which is a subsidiary of Kuwait Cement Ready-Mix Concrete Company, hence the total number of its ready-mix concrete plants reached Four.
– In July 2013, began the operation of the second kiln for the production of Clinker, with a daily production capacity of (8) Thousand Tons i.e. (2.5) Million Tons annually. This resulted in increasing the production capacity when combined with the first kiln, hence the production capacity reached (5) Million Tons annually i.e. 15 to 16 Thousand Tons of cement per day.
|2014||By mid of year 2014, the operation of the second kiln for the production of Clinker was complete, with production capacity of (8) Thousand Ton/day i.e. (2.5) Million Ton/year, accordingly the total production capacity increased beyond 5 Million Tons annually.|
|2015|| – Reconciliation of the Company’s status by amending some items in the Articles of Association in accordance with the Commercial Companies Law No. (25) of year 2012 and its amendments and Executive Bylaw.
– As per the requirements of Governance Rules, three committees derived from the Board of Directors were established, namely Audit, Committee, Risk Management Committee and Nomination & Remuneration Committee.
– Development of two units, namely the Risk Management Unit and the Internal Audit Unit, which will be administratively reporting to the Executive Management, and also appointed a manager as well as Conformity & Compliance officer for each unit.
|2016|| – The Company performed a successful field experiment to burn (700) shredded tires equivalent to (10) Thousand tires approximately, in the kiln of the Clinker as substitute fuel. The said experiment was conducted in coordination with the Public Authority for Environment, Public Authority for Industry, and Fraunhofer Institute for Environmental, Safety, and Energy Technology UMSICHT – based in Germany. The experiment did not result in any adverse environmental impacts. The said experiment involved a theoretical and practical training course for a number of staff from both Public Authority for Environment and Public Authority for Industry.
– Increased the capital of the subsidiary company “Amwaj International Real Estate Company” from KD. 1,000,000 to KD. 3,000,000.
|2017|| – Commenced the production of White Cement at the Cement Plant, after being stopped from production in year 2011 due to the escalating demand for the Ordinary Portland Cement. This type of cement will be supplied to the State’s development projects as well as the industrial companies.
– The company that belongs to Shuwaikh Cement Company – Shuwaikh Stone Crusher (a branch of a Gulf company) acquired another large stone crusher from the Austrian SBM Company, to be added to the first stone crusher. The first stone crusher is of production capacity ranging from (16) to (20) Thousand Tons per day and had commenced production in March 2018. As such, the total production capacity for both stone crushers will exceed (40) Thousand Tons per day.
– Development of work of the cement mills at the plant, from open circuit into closed circuit in order to increase their operational efficiency and also improve the quality of cement in terms of the degree of strength and increase of production capacity, as well as saving electrical energy being used. This action will be followed by gradual development of work for all mills to operate with closed circuit.
– Following up with the concerned Government authorities to obtain the necessary licenses to burn the used shredded tires as substitute fuel for the Clinker kilns, as the Clinker constitutes an essential substance in the manufacturing of cement. Similarly, following up with one of the European international companies specialized in supplying equipment to feed the kilns with substitute fuel.
|2018|| – The Company obtained the certificate of the American Petroleum Institute (API) for its production of Oil Well Cement used in the oil fields and petroleum services, together with launching a promotional advertisement campaign in the local and foreign newspapers, social media networks and electronic search engines to make the new product known and highlight it to the local and international markets.
– Commenced the first steps in the project of upgrading the software mechanism of the Information Technology Department at the Company, which will be applied to all its departments and sections in order to advance the systems to the international level.
The Company’s contribution to social responsibility and environment protection:
Kuwait Cement Company has always led the way amongst the similar companies in adopting social responsibility and endeavors earnestly to adhere to that by means of developing and expanding its role in the community, as well as achieving social development as one the key pillars of the Company’s mission and objectives. Among the most important achievements of the Company, as examples but without limitation, are the following: