In Country Value (ICV)

12 March 2014
In Country Value (ICV)
Dear Customer
Message from the CEO:
“Oman Cables Industry SAOG” are the pioneers of the non-oil industry in Sultanate of Oman
since 1984 as one of the first manufacturers in Oman. Today, Oman Cables supply more than 120
000 MT of copper and Aluminium products in the GCC market. In total we employ more than 800
people with more than 50% of Oman nationals.”
1. In Country Value (ICV)
Oman Cables Industry (OCI) has closely followed the developments and objectives of In Country
Value (ICV), as this is important for OCI and the industry to fully understand the implications and
compliances thereof. OCI is, as always, committed to continuous improvement, and is at the
forefront of technology, industrial and social development within Oman and the GCC. The
company endeavors to exceed the expectations of the international market and standards and
therefore is proud to participate on this initiative of ICV within its home market, the GCC and its
surrounding countries (MENA).
With an excellent supply record being associated and approved at all major Oil and Gas end
users in the GCC, we also have a fantastic track record in managing projects with internationally
recognized companies. It is therefore to the advantage of the Oil and Gas sector and OCI,
working together to meet the criteria of the ICV and its objectives.
Suppliers
EPCs
Contractor
End User
1.1 The main objectives are as follows:
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Assess the capacity of the domestic supply market
Assess the capabilities of the domestic supply market with the objective to meet the
demand of the Oil and Gas related goods and services in the future
To drive local supply market development initiatives
To retain the highest percentage of total spend in country that benefits business
development
Contribute to human capability development
Stimulate productivity in the GCC’s economy
1.2 Key considerations:
 Investment in fixed assets
 Nationalization of its workforce
 Training of Nationals
 Local sourcing of goods
 Local sourcing of sub contracted services Development of national suppliers
 Support for national training and R&D institutions
The above clearly indicates the ICV strategy and understanding of OCI’s intention to lay
the foundation for the establishment and strengthening of the domestic manufacturing, and
services industry, which will add value to the Oil and Gas as well as other industries in
Oman and in the GCC. This will also pave the way to develop nationals for managerial
and more important technical positions.
2
Oman Cables Industry (SAOG) background
“OCI’s management cautiously applies all its business strategies with a primary objective to ensure
sustainability and to retain the inherent strength of the Company that has been built with hard toil over
two decades, by adding value to its shareholders, country, employees and customers.”
Oman Cables Industry (SAOG) develops, manufactures, markets a totally integrated
variety of electrical products, which include medium voltage power cables, low voltage power &
control cables, instrumentation cables, pilot cables, overhead power transmission line conductors and
building wires. OCI also offers cables with special features such as:
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flame retardant properties
low smoke and fume (LSF) properties
cables with anti-termite sheaths
UV resistant outer sheath
lead sheath
The above special features are suitable for different types of applications, environmental
conditions or as per customer requirement.
OCI was established in 1984 by two Omanis who currently are the Chairman and a Board Director,
which today are a well-known and popular cable manufacturer in Oman with offices in the UAE,
Qatar, KSA, Asia and Europe. The manufacturing facilities are situated in Muscat within the largest
industrial complex in the country, with its offices and factory presently occupying an area of 135000
sqm with future expansion plans in mind. OCI have equivalent facilities in Sohar at its Aluminium
manufacturing facility and together has a capacity of copper and aluminium more than 120,000 MT
annually.
OCI has unrivaled experience in cable production with its leading edge technology. OCI has state of
the art equipment that is amongst the most sophisticated in the cable industry. They are involved
throughout all market segments, which include Utilities, Building and Construction, Transportation and
the Oil and Gas industry.
Among the unique manufacturing facilities at OCI are MV cable manufacturing CCV (Catenary
Continuous Vulcanizing) lines supplied by M/s. Maillefer Extrusion OY, Finland, a world leader in CCV
technology. It can produce cable from 25 mm² to 1000 mm² of both copper and aluminum with
voltage grade up to 33kV. A new state of the art Concentric Stranding machine was installed and
commissioned on 17 January 2009. OCI has set up a new Plant for manufacturing of Aluminium Rods
and conductors.
Oman Cables Industry’s market segments are:
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Utilities (Power, Water, Education, Municipalities, Military, Healthcare)
Building and Construction Industries (Housing to shopping malls)
Oil, Gas and Petrochemicals
Transportation (Roads to Railways)
Industrial Manufacturing (Manufacturing to Processing Plants)
2.1 Shareholding
The unique feature of the shareholding in OCI is the blend of local representation and
international associates which includes public participation. This indeed lends OCI the
opportunity to understand the local interest with the experience and input from the world’s
leading cable manufacturer. To further compliment OCI’s shareholding is the interest of
the public as part of OCI’s listing on the Muscat Securities Market. This ensures a
management focus with the interest of local investors to meet international corporate
governance and standards in full, while enjoying the financial benefit thereof.
From a GCC foothold in manufacturing, OCI now have interest in associated cable companies,
and also are represented on the International Cable Federation, Arab Cable Manufacturing, as
well as the IEC Standards Committee, amongst others.
Oman Cables Industry Group at a glance:
Turnover USD811 million
More than 1000 employees
Listed on The Muscat Securities
Market and Regulated by Corporate
Governance Laws
OCI Manufactures Power Cables
(70000mt Cu)
OAPIL Manufactures Aluminium
Rod-Conductors (60000mt AL)
ACPL Manufactures
Instrumentation/Control Cables
(24000mt)
Besides OCI’s alliances with its international partners, which can compliment a broader range of
products, OCI have the capabilities to supply the local demand of the standard product range.
Currently OCI supply its products predominantly to the local market in Oman and export 40% of
its production to other countries in the GCC. It is envisaged to partake in major projects in the
GCC Oil and Gas industry which will benefit the countries and promote ICV.
2.2 Omanization
As the pioneer of the non-oil industry within Oman, OCI has more
than 50% Omanis working at its facilities. It must be said that
during the years OCI has trained and developed hundreds of
Omanis which now work in the industry throughout Oman. OCI
believe not only to make up numbers but also to develop the
Omanis into management and technical skills. We have Omanis
as Shareholder, Board members, General Managers and OCI’s
Production Manager responsible for managing our LV/BW plant.
We have senior electrical engineers and production engineers with
process engineers managing day to day business and process
innovation. Our first Omani Regional Manager outside of Oman is
appointed in KSA and the development is ongoing which puts OCI
ahead of most industries.
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OCI employs various nationalities
diverse skills
Program for Omanization development
Educational Assistance for post
professional degrees
Training and Internship programs
Compliment customer HR initiatives
with
and
2.3 OCI’s 2013 Training overview for its employees
Min training programs conducted to uplift staff skill in specific areas related to work are:
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Enhancing Staff Performance
CCV Line
Selling Skills
Machine operation Programme
Certified Recruitment and Retention Strategies
Forklift operation
Public Speaking and Presentation Skills
Retention Strategies
Financial Engineering
English Speaking
Number of Program for 2013
Omani’s trained in 2013
Expatriate workers trained in 2013
Total Employees trained for 2013
Total budget spent for the year 2013
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Effective Supply Chain Management
Business Umbrella Workshop
Leadership Skills
ITIL
Windows Server 2008
Enhancing Staff Performance
Management Development
Certified Recruitment and Retention
Strategies
Enhancing Staff Performance
25
107
40
147
OMR43,880
2.4 Product Range
OCI designs, manufactures and markets a wide range of
cables and conductors for diverse applications. OCI has
an extensive capability to offer its customers solutions
for their entire needs in these products. The company’s
product range includes:
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Medium Voltage Power Cables
Low Voltage Power Cables
Control Cables
Instrumentation Cables XLPE Insulated Fire Resistant LV Power Cables (OCI Brand
Name “OCIFLAM-FSA“)
Building Wires
Overhead Line Conductors
The products are manufactured and supplied to meet the requirements of international
standards and accreditations such as BS, IEC, ISO, SABS and KEMA to meet customer
specifications. OCI can also supply a range of alternative designs to meet more
specialized customer needs including enhanced fire performance and added
environmental protection.
Medium Voltage Power Cables
OCI manufactures in Muscat, Sultanate of Oman up to 33Kv cables with a capacity of 3
CCV lines within their facility in Muscat. It has the ability to apply various constructions to
the cables depending on the specifications and customer requirements.
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Single Core Aluminum Wire Armored
Three Core Un-armored
Three Core Steel Wire Armored
Three Core Steel Tape Armored
Single Core Un-armored
Low Voltage Power Cables
OCI manufactures 1 Kv low voltage cables with various constructions and designs up to
1000 mm2 at its manufacturing facilities in Muscat, Sultanate of Oman.
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XLPE Insulated Power Cables
PVC Insulated Power Cables
Overhead Line Conductors
Within OCI’s factory facilities in Muscat Sultanate of Oman and its OAPIL Aluminium Plant
in Sohar, the various products pertaining aluminium conductor are available to the market
according the customer’s specifications and requirements.
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All Aluminium Conductors
All Aluminium Alloy Conductors
Aluminium Conductor Steel Reinforced
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Hard Drawn Bare Copper conductor
Soft Drawn Bare copper Conductor
All Aluminium Conductor with XLPE insulation
All Aluminium conductors with PVE insulation
Aerial Bunched Cable
Instrumentation Cables
OCI has a variety of multi-core and multi-pair instrumentation cables with PE, PVC, or
XLPE insulation and with various forms of mechanical protection from its facilities in
Muscat Oman and approved suppliers.
Despite the existence of a National Standard, experience shows that customers still
require variants, from the use of different core identification schemes to intermediate pair
configuration to materials with enhanced characteristics for a particular application. OCI
can provide customers with various options for insulation and sheathing compounds,
individual screening, overall screening, and mechanical protection and enhanced fire
performance characteristics. The standard range includes multi-core and multi-pair copper
conductor instrumentation cables conforming to BS EN 50288. OCI manufacture and
apply lead sheath for instrumentation cables according to customer specifications
OCI currently outsource instrumentation cables with accredited approved suppliers which
conform and comply with the customer specifications and required standards if so
required. OCI endeavor to communicate with the customer pertaining their intension, if
outsource cables is required, to ensure compliance with country laws and customer’s
terms and conditions. OCI do manufacture lead, sheathing and steel wire armored and
has the capability to test the cables according customer specifications.
Control Cables
OCI has a complete range of XLPE or PVC insulated armoured or un-armoured control
cables, with or without Copper screen, conforming to BS-4567, BS-6346 & IEC 60502 and
other international standards. We also manufacture the full range of control cables for
special applications which require enhanced fire performance as per IES-60332-1 & IC60332-3, Low Smoke Zero Halogen characteristics as per BS6724, anti termite treatment
and UV resistant.
OCI currently outsource control cables if deemed necessary with accredited approved
suppliers which conform and comply with the customer specifications and required
standards if so required. OCI endeavor to communicate with the customer pertaining their
intension if outsource cables is required to ensure compliance with country laws and
customer’s terms and conditions. OCI do manufacture lead, sheathing and steel wire
armored and has the capability to test the cables according customer specifications.
XLPE Insulated Fire Resistant LV Power Cables (OCI Brand Name “OCIFLAM-FSA“)
OCI manufacture 600/1000V grade, plan annealed (copper conductor, glass mica tapped
XLPE insulated, multi-core cables laid up and inner sheathed with LSF (or LSOH/LSZH),
round galvanized steel wire armoured and outer jacket with LSF (or LSOH/LSZH). These
Cables are meant for maintaining circuit integrity under fire condition for 3 hours (tested for
3 hours at 950°C temperature.
Building Wire
OCI produces the full range of house wiring cables from 0.5 mm with wide range of core
colour. The conductor is plain annealed solid or stranded Copper conductor is plain
annealed solid or stranded Copper conductor insulated with PVC or heat Resistant PVC
as per BS-6004. OCI also manufactures twin flat wires up to 6mm² with or without Earth
continuity conductor. The complete range of wiring cables can be manufactured using Low
Smoke Zero Halogen thermo-setting insulation compounds conforming to BS-7211 or with
compounds to suit customer’s specific requirements.
Special products outside OCI manufacturing scope
OCI endeavours to manufacture and supply a full product range of electrical cables to its
customer base within the different market sectors to ensure consistent quality and
compliance to the country laws, customer specifications and to support ICV in full.
It is however impossible for any manufacturer and business to manufacture all cables as
the diversity of the electrical cable spectrum is huge and the requirements of the different
applications throughout the market sectors requires multiple cable constructions. OCI
therefore carefully select the product ranges which are most popular to the region and its
customers for manufacturing and supply at its manufacturing facilities.
If and when there is requirements for products from customers outside OCI’s
manufacturing scope, OCI carefully consider their involvement to ensure its customers that
OCI can supply such products to meet the quality, specifications and standards
accordingly.
On demand for these products from the customer outside OCI’s manufacturing capabilities
OCI will recommend alternative products manufactured at its plant where possible and/or
appoint approved suppliers to complement OCI’s current product range and/or special
products with the consent of the customer.
It is important for the customers to continuously communicate with OCI and vice versa to
investigate products of interest for OCI to supply and manufacture to enhance ICV (In
Country Value). This will result in a case study for the economic viability for an investment
to service the market requirements and OCI’s investment proposal.
2.5 Manufacturer’s Capability (assets with capacity)
Oman Cables Industry’s manufacturing facility located in Muscat have an installed
capacity to produce up to 75 000 mt per annum of Copper and AAC/XLPE Aluminium
Conductors used for the manufacture of Low voltage and Medium voltage power cables up
to 33000 volts. In addition, our subsidiary company, Oman Aluminum Processing
Industries (OAPIL) located in Sohar (Sultanate of Oman) is a state of the art
manufacturing facility established in 2008 and has an installed capacity of 50,000 mt per
annum of Aluminium.
OCI and OAPIL’s relatively late entry into cable manufacturing during the late 80’s and
2011 has enabled the acquisition of the best and most modern, state-of-the-art plant and
equipment. This is revolutionary when compared to traditional cable making machinery
and processes of other cable companies that have been in the business for many years.
OCI and OAPIL’s process technology is further enhanced by in-line process control
equipment with built-in continuous measurement systems to ensure that norms and
specifications are constantly monitored and adjusted during production by computerized
master systems.
The manufacturing operation is driven from a well recognized integrated ERP system
BaaN and further enhanced to the shop floor level where Manpower, Machines, Methods
and Materials are planned and controlled for optimum utilization and to ensure a low cost
base without compromising product and service quality.
Our manufacturing methodology is driven through a culture of Continuous Improvement
that constantly monitors and evaluates the production process in order to ensure optimum
quality, minimize work in progress and reduce process cycle times.
The Continuous Improvement department is the introduction for young Omani engineers
that serves as an orientation period between pure academic learning and actual cable
making technology and manufacturing process before they are placed in other positions
throughout the operations.
Various improvement drives in the field of product and material improvements as well as
manufacturing efficiency improvement has proven to be of great benefit to OCI and its
customers.
The vast knowledge base is continually enhanced through regular exposure of key
personnel to Technical seminars and Technology exhibitions all around the world.
Emphasis is specifically placed on growing the technical knowledge and abilities of young
Omani Engineers who are regularly attending amongst others the Cable and Wire
Exhibition in Dusseldorf, Germany.
OCI’s Technical skills and resources are further enhanced through vast knowledge and
manufacturing experience of various senior Cable.
The core of OCI business activity is the manufacturing of world class power cables.
Efficiently converting the quality raw materials into this specialized product not only
requires the most modern, state of the art manufacturing technology and method but also
the commitment and skills of talented local and international people.
OCI continuously strives to develop the skills of its people as well as partnering with both
equipment and material suppliers in developing new materials, innovative product and
manufacturing methods.
2.5.1
Manufacturing Plant Locations
OCI has three manufacturing plants and a fourth plant is under construction of 20,000 m2
site will be in Rusayl Industrial Estate to manufacture cables and wires and also has a
PVC plant at the same location. ACSR and AAAC conductors are supplied by OAPIL.
OAPIL plant is located at Sohar. The details of all the plants are given below.
Plant 1 Muscat Oman
Full plot area: 52056.00 m²
Hall 1 factory shop floor area: 9105.42 m²
Hall 2 factory shop floor area: 12866.48 m²
Product range: LV cables, MV cables and OH conductors.
Plant 2 Muscat Oman
Full plot area: 25612.31 m²
Factory shop floor area: 25612.31m²
Product Range: LV cables Control cables and Building
wires.
PVC compounding plant Muscat Oman
Full plot area: 24024.84 m²
PVC plant area: 1902.05 m²
OAPIL Plant Sohar Oman
The current site is around 90,000 m²
Under roof: 14,000 m²
Utilities:
2,200 m²
Road/storage/parking: 41,000 m²
Available for further
Expansion:
33,000 m²
Conductor manufacturing
2.6 Testing
Manufacturing cable may look easy, but the
challenge is to meet, without doubt, the highest
standards of cable manufacturing and approvals,
and to obtain international accreditation for its
products.
This is indeed OCI’s forte and
competitive advantage to ensure they stay abreast
of normal cable manufacturers.
From the
customer’s specifications, terms and conditions,
delivery
requirements,
up
to
the
last
documentation, OCI is definitely geared to service
the industry with pride.
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OCI have complete type testing facilities for
applicable standards
OCI confirms to Test Methods (TMS) with
more than 28 tests
Tests are performed for new materials, raw
materials, in-line manufacturing up to final
product
OCI has three Test Laboratories from
sample to routine final testing
Customers and Third Party Testing a
standard procedure
OCI has access to the world’s best Test
Centers
OCI supplies various GCC and International Utilities with product approvals and
type tests to verify OCI's ability to manufacture according to customer's
requirement.
2.6.1
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To ensure this:
New materials, or materials from alternate suppliers are fully tested and
manufacturing trials are performed before the material is approved.
Incoming raw materials are ordered and tested upon delivery to ensure
that they comply with OCI's strict Raw Material Specifications. In addition
Suppliers submit with each batch of materials delivered the test results for
that batch. Materials not complying are rejected.
During manufacturing it is ensured that material characteristics are not
adversely affected by the production processes.
The final product always conforms to the relevant OES/IEC/BS or
Customers Standards and requirements.
OCI has three fully equipped laboratories where incoming raw material, in
process, sample and routine final testing of products and materials are
conducted.
In addition to all electrical testing, all cables including Low and Medium Voltage
cables are subjected to stringent physical and mechanical testing.
We have a complete Type Testing facility for all the cables and Overhead
conductors as per applicable standards and specification.
2.6.2
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Advanced
(ATL)
Technology
Laboratory
Accelerated Ageing Test Capability (50Hz
and 500Hz)
Verification of material Combinations
Training facility
OCI has a new OCI Advanced Technology
Laboratory (OCI ATL) on its Rusayl premises in
Muscat which is currently commissioned and
will be in operation June 2014. The 50 and 500
Hz water ageing power supply and breakdown
equipment has been purchased from Phoenix
Technologies in the USA.
OCI’s test facilities ensure that only quality,
conforming, cables are supplied to our
Customers giving them assurance of long
trouble free service from the cables. This is an
initiative from OCI to enhance quality and
training to its employers and customers with the emphasis on ICV. OCI will
contribute to the customers investment by assisting and ensuring their products
comply and last to benefit product life cycle costs (PLC).
This state-of-the-art facility will include new and modern lecture and training
facilities. Facilities can also be utilized, subject to work load, and in conjuncture
with the Customer, for testing of cable accessories such as joints, terminations,
simulation of installation conditions and faults.
2.7 Accreditations and Certifications
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KEMA – The Netherlands
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BSI UK
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BASEK UK
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Tag Corporation Chennai India
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ERDA Baroda India
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CPRI Bangalore India
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SABS
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OCI have the capability to obtain accreditation
for specific products
2.8 Corporate Social Responsibility
Important is the participation and contribution of OCI within the social scheme in the GCC.
There is continuous initiatives and involvement from OCI within the various communities and
ministries. Not only do OCI provide funds, but also its knowledge and experience to the
industry and ministerial initiatives.
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Association for the Welfare of Handicapped Children
Al Noor Association for the Blind and Association for the Disabled
Association for the Early Intervention for Children with Special Needs
Support PEIE, Public Establishment for Industrial Estate
Partake in Government initiatives
2.9 Oman, GCC and International Customers
OCI throughout its market sectors play an active role in the supply of its products but also
in support to the SME’s within the community throughout the market where OCI is active
(Oman, UAE, Qatar, Kuwait, KSA, Iraq, Bahrain and Africa). This is of utmost importance
to ensure a sound support to entrepreneurial businesses. We make use of an extensive
distribution value chain from the stock and sell of our products and also the massive
procurement input we have into the various businesses in the GCC. OCI has an extensive
national network of agents and distributors within the GCC countries which provide the
necessary ICV support and for OCI to further developed.
GCC
CUSTOMERS
INTERNATIONAL
CUSTOMERS
2.10
To summarize OCI’s compliance and readiness to the ICV we conclude the
following;
•OCI own property and structure s in excess of USD439.9 million.
•Plant and facilities in fixed assets and financial investment within OCI through the Muscat Securities Market and its
Investment shareholders with a net asset per share of USD 2.1 in 2013 year end.
•Omani shareholders, management and employees of more than 50%
•OCI employee nationals throughout the GCC in their regional capacity with an extensive support to local business
Omanisatio
•OCI employ 301 Omanis throughout the various disciplines and continuously improving
n
Training of
Omanis
Local
sourcing
•OCI have a committed training programme in place which enhances skills and technology
•OCI developed an accredited training programme for the cable industry to compliment customer training and skills
•Besides critical imports, services and supplies within the GCC is more than 80% of OCI's purchases
•Only non-available goods (e.g. copper) are imported and a majority of the copper will be from the UAE.
•From logistics to cleaning, security, including other services, OCI support subcontractors throughout
Local
sourcing •OCI provide preferenced support to local subcontracting companies providing cable service within the GCC
subcontract
ed
•OCI continuously develop its own facilities and capacity and have a detrimental input in other local national supply
Developme businesses
nt of
•It welcomes support from the industry outside of Oman to further develop its capabilities and expand its product range
national
suppliers
Support
R&D
•OCI are currently investing in the only advanced testing laboratory in MENA where OCI will test and verify MV XLPE cables
through accelerated ageing and test facilities to enable accelerated ageing and breakdown type testing validating the
extended life span of MV XLPE insulated cores within a cable. This is a breakthrough in product life cycling cost.
The above clearly indicates that OCI is a force to be reckoned with in the GCC when it
clearly shows their intention of investment in the GCC in the late 90’s and is still growing
today through investment and supply of the highest quality products to its valued
customers.
OCI is known as the best cable manufacturer in the GCC with a good record of product
supply and documentation to multiple EPC’s and projects throughout MENA.
OCI, with its shareholding, lent itself for product supply, which cover the full
complement of electrical and instrumentation cables. It is acceptable and open for
investment opportunities in the cable manufacturing arena to broaden the product
offering to its customers and in the GCC and to compliment ICV in full.
2.11
Recommended Support from (Customer) to enhance ICV
Without prejudice OCI can only recommend and suggest ways and means for the
different role players to contribute within ICV initiatives. OCI welcomes the
involvement of all stakeholders and are open for any ideas to contribute to the
objectives set forth by the ICV institutions. It is worth mentioning that OCI should
be viewed as a high quality manufacturer within a low cost country.
We suggest the following primary initiatives which may assist your company to
achieve the above objectives.
support OCI
in additional
products an
services
Insist on
enhanced
test and
approvals
ICV
Enforce
training
through OCI
Utilize OCI's
capacity
2.12
Contact Details:
Louis du Preez
General Manager
Sales and Marketing
[email protected]
+968 2444 3100 Ext 400
Christo Willemse
ICV Project Sponsor
Sales Manager Europe
Sales and Marketing
[email protected]
+ 968 2444 3100 Ext 413
Faisal Al Gheilani
ICV Project Leader
Assistant Development Manager
Sales and Marketing
[email protected]
+968 2444 3100 Ext 444
Rukea Dawjee
ICV Project Manager
Sales Project Coordinator
Sales and Marketing
[email protected]
+968 2444 3100 Ext 403
We further avail ourselves for future discussions on this initiative and appreciate your participation on ICV
With Compliments
Louis du Preez
General Manager
Sales and Marketing

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