Mada Gypsum Company
Mada Gypsum Company, the Saudi Arabian subsidiary of Al Rajhi Holding Group, has had a strong 2014 buoyed by increased demand from both its local market and the regional GCC. This success has meant that the manufacturer has been able to solidify and increase its market share in all key target markets. Despite the political […]
Mada Gypsum Company, the Saudi Arabian subsidiary of Al Rajhi Holding Group, has had a strong 2014 buoyed by increased demand from both its local market and the regional GCC. This success has meant that the manufacturer has been able to solidify and increase its market share in all key target markets.
Despite the political situation in the Levant region making future planning a complicated business, MGC has been able to hedge the instability by developing its other export markets. 2014 also presented further opportunities to the Yanbu Industrial City based firm, with the KSA market under going fundamental change.
More and more projects in the Kingdom have begun to move towards a full systems solutions approach, along with a performance guarantee, rather than merely concentrating on the cheapest option available.
While this represents a major opportunity for MGC, given its higher quality standards as compared to its local competitors, it also poses a challenge as the Saudi firm will be exposed to direct competition from international manufacturers. However, it remains confident in its ability to meet this competition on an equal footing. It has already begun building up a significant technical team that will enable it to continue competing and performing in this new market segment.
In response to the UAE becoming an increasingly important market for MGC, the company has decided to open a branch in the country and enhance its resources in that particular market.
Over the coming few years, MGC is expected to substantially increase its focus on the KSA, UAE and Qatar markets due to their strong growth forecasts for the foreseeable future. It intends to further build up its presence in the retail market by becoming the clear leader in all its core markets.
By leveraging its position as a cost leader and preferred system supplier, MGC aims to become the largest manufacturer of gypsum plasterboard and related products in the GCC and MENA regions within a period of five years, having launched a cement board plant in 2014.
Plans to further increase its plasterboard product range are also underway as the manufacturer looks to provide clients in the GCC with the full range of options as available in international markets.
With plans for expansion and consolidation already in the pipeline, MGC’s next big business focus is to become a full system solutions provider to the growing market in the GCC.
