Chief Executive Officer Address
(Engineer Ali Abdullah Al Hassoon
Vice Chairman & C E O
The international financial crisis has surprised all concerned with the economic
affairs and its negative effects has reflected on the international capital
markets
including Saudi Capital Market, the negative effects extended to the performance
of all companies.
The effect of this crisis on the investments of Al-Ahsa Development Company
was clear especially the investment in paper securities, resulted to unrealized
loss through comparison value of the paper at the start and the end of the year.
The Management of the company has taken a primary reserve to protect
the shareholders equity by forming allowances for facing some cases of falling
or limitation in assets and
questionable debts through the results of the international crisis.
In spite of these circumstances and happenings the Board of Directors of the
company continued his best
efforts for developing the existent projects and carry out the projects under
study planned in the Board of
Directors schedule.
During the year 2008 with the grace of God, the company has obtained 4 Mining
Licenses for extracting
gypsum from the Ministry of Petroleum and Mineral Resources to be ready for
establishing Gypsum plant
with a production capacity of 500,000 tons/year with total cost about SR. 150
million.
Also, the company has obtained the land for establishing Aluminum foil factory,
where the company is
going to complete the required procedure for financing and carry out the project
with a production capacity
of 45,000 tons/year with total cost about SR. 850 million.
The company is following the procedure to get a license to extract the lime
stone site from the Ministry of
Petroleum and Mineral Resources to establish Cement plant the company is about
to carry out it with
production capacity of 5000 tons/day with cost more then SR. One billion, for
that the company has
completed the tender files and submitted it to the Ministry of Petroleum and
Mineral Resources and the
company is waiting for getting the extracting license from the Ministry of
Petroleum and Minerals
resources.
During the first quarter of the year 2009 the company has signed a Memorandum of
Understanding (MoU)
with a Chinese Company to discuss with them the terms and conditions for Chinese
company to be a partner
with Al-Ahsa Development Company in gypsum plant and aluminum foil factory. The
MoU includes also
the possibility of subscription of Chinese company in cement plant.
ADC expects that cooperation will help to carry out these projects according to
the latest technology to be
a principal foundation for the company’s future and growth for its assets
through the operating profits as a
result of these projects.
The continuous support and the unlimited encouragement that ADC and all national
companies receive
from the concerned government authorities is considered as a real incentive for
all these companies, official
to make more efforts to improve and develop the performance of their companies.
I would like to end by thank you all shareholders of the company for their
contacting, suggestions and
remarks which lighted our way. I would like also to thank all the employees of
the company for their efforts
to improve the performance and raise the efficiency.
I pray to almighty God to support our efforts for achieving the growth and
progress especially for our
company and generally for the Saudi economy.
CEO