In Country Value. 2
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3 Truly Omani... Trusted Globally
4 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, OCI has a reputable 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 The main objectives are as follows 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 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. 4
5 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 Oman Cables Industry (SAOG) background Oman Cables Industry (SAOG) develops, manufactures, markets a totally integrated variety of electrical products, which include medium voltage power cables, low voltage power and control cables, instrumentation cables, pilot cables, overhead power transmission line conductors and building wires. OCI also offers cables with special features such as: 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 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. 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 Oman Cables Industry s market segments are: 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) 5
6 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 USD 811 Million (2013) More then 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 complement 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. 6
7 Omanisation As the pioneer of the non-oil industry within Oman, OCI has more than 50% Omanis working at its facilities in Oman. 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. OCI employs various nationalities with diverse skills Program for Omanization development Educational Assistance for post and professional degrees Training and Internship programs Compliment customer HR initiatives OCI s 2013 training overview for its employees Training programs conducted to uplift staff skills in specific areas: Enhancing Staff Performance CCV Line Selling Skills Machine operation Programme Certified Recruitment and Retention Strategies Forklift operation Public Speaking and Presentation Skills Financial Engineering English Speaking Effective Supply Chain Management Business Umbrella Workshop Leadership Skills ITIL Windows Server 2008 Management Development Program Number of Program for Omani s trained in OCI works closely with the Ministries and the Industry to share ideas on uplifting and development of the National workforce. Throughout the various expertise in the company, different skills are passed on as part of a mentorship program. An approved percentage has been invested by OCI for training and development and forms an integrated part of OCI s commitment to its staff and the countries its operating in. 7
8 As part of OCI s commitment to its home market the GCC, it has invested in an Advanced Test Laboratory where the products will be tested intensively to ensure that OCI continuously deliver the best quality products in the region. This will have a huge influence and benefit on the life cycle cost in energy networks. Accredited training for staff and industry will be conducted at its training facility. OCI believes this investment is an example for its commitment towards ICV. 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 requirements for these products. The company s product range includes: 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 requirements 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. 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. XLPE Insulated Power Cables PVC Insulated Power Cables Specified materials as per customer specification 8
9 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. All Aluminium Conductors All Aluminium Alloy Conductors Aluminium Conductor Steel Reinforced 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 OCI manufacture and apply lead sheath for instrumentation cables according to 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 and other international standards. We manufacture the full range of control cables for special applications which require enhanced fire performance as per IES & IC , Low Smoke Zero Halogen characteristics as per BS6724, anti-termite treatment and UV resistant. 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. 9
10 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 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 endeavors to manufacture and supply a full product range of electrical and instrumentation 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. Instrumentation and control cable are currently outsourced by accredited suppliers 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. Manufacturer s capability (Assets with capacity) Oman Cables Industry s manufacturing facility located in Muscat have an installed capacity to produce up to MT per annum of Copper and AAC/XLPE Aluminium Conductors used for the manufacture of Low voltage and Medium voltage power cables up to 33kV. 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. 10
11 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. 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: m² Hall 1 factory shop floor area: m² Hall 2 factory shop floor area: m² Product range: LV cables, MV cables and OH conductors 11
12 Plant 2 Muscat Oman Full plot area: m² Factory shop floor area: m² Product Range: LV cables Control cables and Building wires PVC compounding plant Muscat Oman Full plot area: m² PVC plant area: 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 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. 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 New materials, or materials from alternate suppliers are fully tested and manufacturing trials are performed before the material is approved. 12
13 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. Advanced Technology Laboratory (ATL) and Training 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 operational in June 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 Accreditations and certifications KEMA - The Netherlands BSI UK BASEK UK Tag Corporation Chennai India ERDA Baroda India CPRI Bangalore India SABS OCI have the capability to obtain accreditation for specific products 13
14 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. 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 Small, Medium Enterprizes 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. Recommended Support from Customer to enhance ICV Without prejudice OCI can 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 Utilize OCI s Capacity Training through OCI 14
15 To summarize OCI s compliance and readiness to the ICV we conclude the following; Investment 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 shareholders with a net asset per share of USD 2.1 in 2013 year end Omanisation 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 OCI employ Omanis throughout the various disciplines and continuously improving Training of Omanis 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 Local sourcing Besides critical imports (local non-available) - services and supplies within the GCC is more than 80% of OCI s purchases OCI has various contracts with local suppliers and service providers Local subcontracted From logistics to cleaning, security, including other services, OCI support subcontractors throughout OCI provide preferenced support to local subcontracting companies providing cable service within the GCC Development of national suppliers OCI continuously develop its own facilities and capacity and have a detrimental input in other local national supply businesses It welcomes support from the industry outside of Oman to further develop its capabilities and expand its product range 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 cycle cost. The above clearly indicates that OCI is a force to be reckoned within the GCC, when it clearly shows their intention of investment in the GCC in the late 80 s and is still growing today through investment and supply of the highest quality products to its valued customers. OCI is known as the prefered cable manufacturer in the GCC with a good supply record of product supply and documentation to multiple EPC s and projects throughout MENA. OCI welcomes ICV opportunities in the cable manufacturing arena to broaden the product/service offering to its customers and in the GCC. 15
16 Contact Details OMAN CABLES INDUSTRY (SAOG) Factory & Head Office P.O. Box 25, Rusayl 124 Rusayl Industrial Estate Sultanate of Oman Tel. No.: Fax: Salalah Office Road 23, Al Salam Building 5th Floor, Flat 17 Tel : Fax : salalah.office@omancables.com Saudi Arabia Office Diamond D Building Sitteen Street Malaz 4th Floor Office # 42 Riyadh Kingdom of Saudi Arabia Tel : Fax : riyadh.office@omancables.com Christo Willemse ICV Project Sponsor Sales Manager Europe Sales and Marketing christo.willemse@omancables.com , ext 413 Rukea Dawjee ICV Project Manager Sales Project Coordinator Sales and Marketing rukea.dawjee@omancables.com , ext 403 Faisal Al Gheilani ICV Project Leader Assistant Development Manager Sales and Marketing Faisal.algheilani@omancables.com , ext 444 UAE Office Flat 1201, 12th Floor, Crystal Plaza, Office Tower C,Buheira Corniche, Al Majaz Area, Sharjah, UAE Tel : Fax : sharjah.office@omancables.com Qatar Office Office Centre Building, Flat No: 165, 1st Floor, (Opposite HSBC Bank), Salwa Road, Doha, Qatar Tel : Fax : doha.office@omancables.com 16 5/2014 Rev. 1
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