NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:19 pm – mac5 – 3776 Section 07 : 3776 Section 07NICBM manufactures building materials and concrete pipes for infrastructure uses. NICBM alsoproduces plastic pipes and fittings and extracts rocks from its quarries. Production is carried out intwo groups of factories in Kuwait. These are the Mina Abdullah Port factory complex and theSulaibiya factory complex.The Mina Abdullah Port factory complex contains the following main facilities:• Autoclaved aerated concrete block (AAC) factory (also known as Gas aerated concreteblocks);• Sand lime bricks factory;• PVC factory;• Quarry (located nearby at Al Ahmedi area);• Lime factory;• Plaster and wall covering and cladding factory;• High density polyethylene (HDPE) factory;• Polypropylene factory; and• Paint factory.The Sulaibiya factory complex contains the following main facilities:• Ready mix factory;• Tiles and curbstones factory;• Concrete pipes factory;• Interlock tiles factory; and• Sand washing station.In August 2006, NICBM announced its plans to construct a KD 20 million porcelain and ceramicfactory in the Mina Abdullah Port factory complex. The factory is expected to be operational by theend of 2007 and will have a production capacity of 10 million square metres of porcelain andceramics per annum. The production of the new factory is principally intended for export,particularly to Europe and the US.NICBM’s customer base consists of large construction companies (including Governmentappointed contractors on Government projects), wholesalers and private individuals. Limited salesare also made directly to the Government.In 2006, approximately 70 per cent. of NICBM’s sales were made to private sector companies inKuwait, approximately 23 per cent. to Government entities in Kuwait and the balance wasexported. Of the private sector sales in Kuwait, approximately 47 per cent. were made to largeconstruction companies, approximately 22 per cent. were made to wholesalers and the balancewere made to individuals.72