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Classification | Internal
SUPPLIER EVALUATION REPORT
Supplier : SPECIALISED MATERIALS TRADING CORPORATION, JUBAIL
Audit Date : 09.12.2009
Report:
This Supplier evaluation visit was carried out on 9th December 2009 at 9.30a.m, at Specialised Materials
Trading Corporation (SMATCO), Jubail to assess their capabilities and potentials for meeting Nesma’s
project requirements.
The following SMATCO staff attended:• Sudheer Menon – Asst. General Manager
• Ravi Srinivasan – Marketing Manager
Findings are given below:1. RESOURCES / SCOPE
1.1.
Specialised Materials Trading Corporation (SMATCO) is a medium size company, and has
been operating since November 2004.
1.2.
This office is located at Makkah Street, Jubail, opposite to Hilti Show Room.
branches in Bahrain and Cochin – India.
1.3.
Commercial validity of the establishment verified and found acceptable.
1.4.
They are mainly engaged in Trading activities. They do have a joint venture with Global Trade
Links LLC, USA. In addition to this, they have local business representation in U.K, Germany,
Italy, India, Korea, Dubai and China.
1.5.
Scope of business mainly comprises supply of pipe & fittings (SS, CS, Aluminium with all
grades), all types of valves, instrumentation tubing, fittings, electrical conduits & fittings, flow
indicators, Instrumentation Cables, Control Cables, Power Cables, etc.
1.6.
They have warehouse at Makka street, Jubail (Near Jubail Chamber of Commerce) having an
area of 2400 m2
1.7.
Technical and Sales staff included 9 employees, working under various capacities.
1.8.
Resource management aspects were checked and found satisfactory.
1.9.
They are sole distributor of Key Instruments – USA, Salina Vortex Valves – USA and Panam
Engineers, India.
1.10.
Single Major Order value executed is amounting to SR. 2.3 Million, and SR. 1.4 Million in
2008 and 2009 respectively.
1.11.
Total business turn over is SR. 35 Million in 2008.
1.12.
They do have adequate logistics support with regard to transportation, etc.
They have
2. PURCHASE MANAGEMENT SYSTEM
SMATCO have shown their commitment to provide solutions for any quotation related enquiries within
hours. There is no doubt in meeting our project needs within the scope of their product supplies.
Classification | Internal
Classification | Internal
Classification | Internal
Classification | Internal
Being a Trading company, basic requirement of internal purchasing activities were controlled and
recorded. Documents were verified to substantiate compliance to on timely delivery of materials,
response to quotations, customer enquiries, selection and sourcing out of branded materials, etc. were
carried out and found acceptable. For lead materials, material inspection was carried out in their
warehouse. Adequate documented evidence was available to substantiate material inspection activity,
especially for materials having higher specification, and criticality of materials.
Quotation validity is 1 week (depending on materials). With regard to credit facility, they provide 30
days.
Material test certificates will be provided along with delivery.
3.
AFTER – SALES SERVICE
SMATCO have established measures to ensure customer satisfaction at various stages of execution of
order. They have a team to cater for any assistance to their customers with regard to their supply of
product.
4.
ARAMCO / OTHERSAPPROVAL
SMATCO is an approved vendor of Saudi Aramco, Royal Commission and Marafiq.
approval from SABIC is awaiting.
Vendor
5. ISO 9001 CERTIFICATION
SMATCO has not been certified to ISO 9001.
6. MAJOR CLIENTS & PROJECTS
Major clients include Saudi Aramco, Marafiq, Royal Commission, SNC Lavalin,Hundai, Siemens,
Samsung, Mutsubish, SETE Energy, Technicas Reunidas, Tecnimont, Carlo Gavazi, Gama, Saudi
Binladin, CCC, etc.
REMARKS
1. SMATCO is found to have adequate resources and potential for meeting various project related
requirements.
2. The statutory and regulatory requirements related to the products are complied with.
3. Competence, experience and skills of the staff are found satisfactory.
4. Infrastructure and work environment of the company are found excellent.
CONCLUSION
Based on the overall assessment, Specialised Materials Trading Corporation (SMATCO) be added to our
Approved Suppliers List.
Classification | Internal
Classification | Internal
Audited By
C. HARIDAS
QMS Lead Auditor
IRCA Certification No. 01188725
Classification | Internal
SUPPLIER ASSESSMENT QUESTIONNAIRE
Supplier’s Name
Supplier’s Address:
Phone No.
Audit Date:
Contact Person:
Fax No.:
e-mail:
Purpose of Audit:
Work Schedule
Number of Shifts
Work Schedule Hours
Organisation Chart
Manpower Details
Manager
Supervisor
Total Employees
Days per week
Production staff
Supporting staff
QA/QC
Legal Documents
Valid Commercial
Registration Certificate
Valid Zakat Certificate
Valid GOSI Certificate
Valid Certificate of
Chamber of Commerce
Valid Saudization
Certificate
Facility / Infrastructure/Work Environment
Number of
Buildings
Building Description
Office
Office
Production
Workshop
Manufacturing
Warehouse
Type of Buildings
Accommodation
Storage
Single
Multistorey
Warehouse
Concrete
Steel
Total Area
Are you a subsidiary of another organisation. (if yes, please specify)
Is an updated organization chart available?
Do you have written job responsibilities for each key personnel in the organization?
How many shifts of operation in the Production?
How many employees are working under direct sponsorship?
Does the organization have policy on Quality and HSE?
Who is the contact person for the following?
Quality
HSE
Production / Procurement
Are sub-suppliers involved in the material supply/production?
Please specify:
Please list the name of clients
Yes
No
Remarks
Total
QA/QC
Production
Yes
No
Remarks
Yes
No
Remarks
Is your QMS certified to ISO 9001? If yes, please provide copy of ISO 9001 certification.
If not, please describe how QMS is implemented within your organisation?
Do you possess governmental legal certification for your facility, especially for your production, storage area, etc.
Do you have any operating procedures within your organisation?
Is there any procedure for notifying customers regarding changes to specification changes, production plan, delivery schedule,
etc.?
Do you have a dedicated Quality Control Dept.?
Does QA/QC dept. or any other department approve specifications and workflows prior to confirming with customer?
Do you have a batch numbering system?
Do you maintain and record shelf life of materials for first-in-first out cycle with regard to issue of materials?
Do you have Approved Suppliers List?
How do you select and approve new suppliers?
Do you evaluate the supplier performance? If yes, please define frequency
Do you follow purchase specifications as per customer requirements?
How do you accept raw materials?
Do you conduct in-process and final process inspection?
Do you follow Inspection & Test Plan for inspection of materials and fabrication?
Do you provide sample for customer’s approval? Sample area is defined?
Do you have storage facilities?
Is material issue & receipt controlled?
Is stock record maintained?
Do you have quarantine area in the storage area?
Do you maintain temperature and humidity in the storage area?
How many production plant is equipped? Please specify with area?
Is plant working with valid legal documents?
Is plant having any client’s approval?
Do you have work instruction for the production process? If yes, please describe methods from material control to release of
fabricated items.
Is traceability maintained throughout the production process?
Is there an in-process inspection?
Is there preventive maintenance for equipment & machinery?
Do you control calibration certificate validity of measuring instruments?
Do you have a procedure for controlling non-confirming product?
How do you identify the product batch number wise?
How do you control the production in bulk requests?
Do you have a proper manpower planning?
Is your current manpower adequate to meet the demands of customer?
How do you manage HSE issues?
Do you communicate MSDS requirements to the employees?
Do you produce any hazardous materials? If yes, please provide list and brief controls?
Describe your packing methods while dispatching the materials
Are proper identification and labelling implemented?
Do you inspect materials during packing?
Do you conduct final inspection of materials prior to releasing to the customer?
Verify material release records
Who authorizes the release of materials?
Do you have sufficient transportation?
List vehicles/machinery within the organisation
Do you train staff to acquaint with the operating procedures?
Is your warehouse personnel trained in warehouse management system?
Vendor Evaluation Summary
Adada & kabbani
Procurement Department has been invited for doing an appraisal to adada & kabbani
Location:
Factory at Makkah industrial city, location:

Offices in Tahlia street – Jeddah, location:

Time & date: Factory: 19 05 2024, Offices: 20 05 2024
Staff in attendance: General Manager, Head of the Operation, Factory Manager, Estimation
Manager, Company Performance Manager, Production Manager, Development Manager,
Maintenance Manager
MAY 25
Conducted by: Eng. Khaled Masoud
adada & kabbani
Factory and office visit
Assessment & Evaluation
1
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Factory and office visit to adada & kabbani
The Procurement Department has arranged a visit to conduct an appraisal of the
Adada and Kabbani factory, including operations, technical office, quality, and safety,
among other aspects.
Developed and implemented in the industrial area of Makkah, Saudi Arabia, the factory
covers an area of 12,000 SQM. This is where the heart of the production beats; the
perfect interplay between modern machines and traditional handicraft.
Agenda of adada & kabbani factory and office visit:
Production and fabrication phases:
1234-
Find the Factory, production capability
Find the Firm capacity according to quality and standards
Find the Firm rates in productivities, machinery status, equipment list and checking its conditions
Find the overall product quality
Management, Technical and Operation phases:
5- Find the management capacity
6- Find the Technical capacity and capability
7- Find the Operation capacity and capability
2
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Overall, the appraisal found good and could be a real partner to us
PASSED
CHAIRMAN & BOARD MEMBERS
3
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Factory facilities & capacity
– Factory: 9,216 SQM
– Warehouse: 1,960 SQM, raw materials
– Warehouse: 1,516 SQM, finishes
– Capacity: 35,000 LM of Cabinetry – (Kitchen & Closets), 50,000 SQM of Decorative
Wood Work & Cladding, 400 Tons of Steel Case Works, 250 Tons of Other Joinery
Works
Machinery status and Equipment list and condition certificates
– All Machines are Italian brand with a very good condition
– Attached equipment and machine photos, also please find the PQ
– Attached machine list for references
Company certifications & Accreditations
4
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
➢ Photo Presentation
Factory
Fig (1)
Fig (2)
Factory
Fig (3)
Fig (4)
Factory
Fig (5)+
Fig (6)
5
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Factory & Office Pictures
Fig (8)
Fig (7)
Fig (9)
Fig (10)
Fig (11)
Fig (12)
Fig (13)
Fig (14)
6
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Fig (15)
Fig (16)
Fig (17)
Fig (18)
Fig (19)
Fig (20)
Fig (21)
Fig (22)
7
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Fig (23)
Fig (24)
Fig (25)
Fig (26)
Fig (27)
Fig (28)
Fig (29)
Fig (30)
8
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Fig (31)
Fig (32)
Fig (33)
Fig (34)
Fig (35)
Fig (36)
9
Classification | Confidential
Vendor Evaluation Summary
Adada & kabbani
Fig (37)
Fig (38)
Fig (39)
Fig (40)
Fig (41)
Fig (42)
THANK YOU
10
Classification | Confidential
Nesma & Partners – Capability
Presentation
Contents
Company Introduction & Specialty.
Ongoing Projects
Factory Facilities & New Machinery
Software
Sample Documents
Quality Protocols & Formats
Diriyah Project Overview
Company Introduction &
Specialty
1.1 Company Introduction
Specialty & Experience.
Organization Chart.
1.2 Specialty & Experience
Fit-out & Hospitality.
Kitchens, Wardrobes, Wooden Doors.
Interior Timber Works.
Exterior Timber Works.
Industrial & Commercial Kitchens.
Ongoing Projects
2. Ongoing Projects
Project Title
Client/Owner
Nature of Works
Costal Village
Four Seasons Hotel
Red Sea Global
AMAALA
Kitchen Cabinets, Wardrobes, and Appliances
Timber External Façade and Canopies
Four Seasons Hotel
AMAALA
Kitchen and Laundry Equipment
Amaala Staff Village Zone 4
Amana Contracting
Kitchen Cabinets and Wardrobes
Amaala Staff Village Zone 5
Arabian Construction Company
Kitchen Cabinets , Cladding, and Joinery Works
Amaala Staff Village Zone 6
BEC Arabia
Kitchen Cabinets and Joinery Works
Red Sea Global
Kitchen Equipment
SBG – PBAD
Joinery Works, Fit-out, Central Kitchens
Al Murjan Medical Center
STS
Royal Suites, Royal Wings, Joinery Works and
Fit-Out
B05 Farm
MBL
Royal Kitchens
Masar Head Quarter
Umm-Al-Qura for Development and
Construction
Joinery, Fit-out, Doors, Bookshelves,
Mashrabiyas, Counters & Cladding
Al Basateen Compound
Skh Khaled Bin Daoud
Kitchen Cabinets, Wardrobes, Pantry and
Appliances
Red Sea Global – Start up
Transportation Hub
King Faisal Specialist Hospital and
Research Centre
Factory Facilities & New
Machinery
Factory Facilities
Factory total area is more than 12,500 SQM.
More than 2000 SQM total storage area for daily handling and
operations.
More than 1500 SQM total storage area for finished goods.
Factory Facilities
Factory Facilities
Factory Facilities
New Machinery
Item Code
Item Description
Qty Expected Delivery
Profimat50
Automatic Planer and Molder
1
02 Months
CUBE 3
Automatic Planer
1
02 Months
UniCut P
Cross Cut Saw
1
02 Months
UniRip 310
Automatic Gang Rip Saw
1
02 Months
Rondmat 960
Tool grinder for straight and
profile cutter heads
1
02 Months
DYNESTIC
7532
Machining Center DYNESTIC
7532 including 2 sets of tools
1
04 Months
PRO-MASTER
7018
Machining Center PRO-MASTER
7018 including 2 sets of tools
1
02 Months
STREAMER
1057XL C
HOLZ-HER Edge-bander
1
02 Months
773.8 0050
KLEIBERIT 773.8
0050 PE bag (20kg)
100
02 Months
Software
Software
Software
Application
Primavera P6
Resources Planning & Scheduling
Imos
CAD/CAM
AutoDesk Revit
BIM
AutoCAD
Designing
Solid Works
Structural Calculations and Simulations (if required)
Microsoft Dynamics / Miracle
ERP Systems
3D-Max
Image Rendering & Visualization
Sample Documents
BIM Models (ongoing project)
AutoCad (ongoing project)
Work Instruction (ongoing project)
Work Instruction (ongoing project)
Work Instruction (ongoing project)
Cutting List & Fabrication Drawing
(ongoing project)
Primavera P6 Schedules
(Ongoing Project)
Primavera P6 Schedules
(Ongoing Project)
3D-Max (Sample)
Quality Protocols & Formats
Quality Protocols
Quality Protocols
Quality Protocols
Quality Protocols
Diriyah Project Overview
3. DIRIYAH PROJECT OVERVIEW
Project involves of three main items, namely:
1. Wooden Screens.
2. Wooden Balustrades
3. Wooden Doors
Screens (Diriyah project)
Screens (Diriyah project)
Balustrades (Diriyah project)
Timber Facade Screens
(ongoing project / Similar scope to Diriyah project)
Timber Doors
(ongoing project / Similar scope to Diriyah project)
THANK YOU
Abstract
The purpose of this trip is to strengthen the
business relationship between KLC and regular
Chinese Suppliers. Moreover, to study further
the areas of developing the relationship by
highlighting the possible market growth
potentials then to focus into the weak points in
order to come out with creative ideas for best
collaboration. Apart from that, to find out new
reliable sources to establish new business to
draw a road map as a step for future expanding
to KLC’s products.
KLC Visit to China
Manufacturers
Prepared By: Procurement Department
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Table of Contents
Introduction ………………………………………………………………………………………………………………………………………………………. 3
TPCO Visit………………………………………………………………………………………………………………………………………………………….. 3
Background Information ………………………………………………………………………………………………………………………………….. 4
Objectives ……………………………………………………………………………………………………………………………………………………… 4
Observations and Experiences ………………………………………………………………………………………………………………………….. 4
Discussion and Conclusions ……………………………………………………………………………………………………………………………… 5
Recommendations ………………………………………………………………………………………………………………………………………….. 5
Jiuli Visit ……………………………………………………………………………………………………………………………………………………………. 6
Background Information ………………………………………………………………………………………………………………………………….. 6
Objectives ……………………………………………………………………………………………………………………………………………………… 6
Observations and Experiences ………………………………………………………………………………………………………………………….. 7
Discussion and Conclusions ……………………………………………………………………………………………………………………………… 8
Excerpts from Jiuli visit:………………………………………………………………………………………………………………………………. 9
Recommendations ………………………………………………………………………………………………………………………………………… 10
Anhui Sailings Visit ……………………………………………………………………………………………………………………………………………. 11
Background Information ………………………………………………………………………………………………………………………………… 11
Observations and Experiences ………………………………………………………………………………………………………………………… 11
Discussion and Conclusions ……………………………………………………………………………………………………………………………. 14
Recommendations ………………………………………………………………………………………………………………………………………… 15
Baofeng Steel Visit ……………………………………………………………………………………………………………………………………………. 16
Background Information ………………………………………………………………………………………………………………………………… 16
Objectives ……………………………………………………………………………………………………………………………………………………. 16
Observations and Experiences ………………………………………………………………………………………………………………………… 16
Recommendations ………………………………………………………………………………………………………………………………………… 16
Zhong Gang Lian ………………………………………………………………………………………………………………………………………………. 17
Background Information ………………………………………………………………………………………………………………………………… 17
Objectives ……………………………………………………………………………………………………………………………………………………. 17
Observations and Experiences ………………………………………………………………………………………………………………………… 18
Discussion and Conclusions ……………………………………………………………………………………………………………………………. 18
Recommendations ………………………………………………………………………………………………………………………………………… 20
Shandong Meidi Steel ……………………………………………………………………………………………………………………………………….. 21
Background Information ………………………………………………………………………………………………………………………………… 21
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Objectives ……………………………………………………………………………………………………………………………………………………. 21
Observations and Experiences ………………………………………………………………………………………………………………………… 21
Discussion and Conclusions ……………………………………………………………………………………………………………………………. 21
Recommendations ………………………………………………………………………………………………………………………………………… 23
Changyi Steel …………………………………………………………………………………………………………………………………………………… 24
Background Information ………………………………………………………………………………………………………………………………… 24
Objectives ……………………………………………………………………………………………………………………………………………………. 24
Observations and Experiences ………………………………………………………………………………………………………………………… 24
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Introduction
The Relationship existence is the key of growing or expanding any trading business. Hence, maintaining
the business relationship is very important and not either easy so in order to strengthen the bonds
between KLC’s sources in China, the Procurement Department planned to arrange a trip to visit
manufacturers which has good potential. That trip targeting TPCO, JIULI, ANHUI SAILINGS, BAOFENG
STEEL, ZHONG GANG LIAN, SHANDONG MEIDI STEEL and MANSHAN IRON & STEEL
This report represents the outcomes of a pre-arranged visitation plan that was developed by the
Procurement Department for several suppliers.
TPCO Visit
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: CS Smlss Pipes.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Background Information
The orders awarded by KLC to TPCO seizes about 50% from total EPC Back Orders. Additionally, KLC
assign about 1000 PLUS TONS of Carbon Steel Pipes as stock material annually. So, apparently KLC
depends on TPCO as an important source for Carbon Steel Pipes likewise TPCO plays a significant role
on sales performance. Recently, -since COVID-19 pandemic to be specific- the orders encounter delays
which leads to lead time increases. As proactive action, Procurement Department has put a plan to visit
TPCO to discuss the Company’s views and to emphasise on the importance of the relationship between
both parties. Furthermore, to discuss and resolve current conflict with TPCO.
Objectives
The visit to TPCO aim to achieve the following objectives:
1. Expedite and improve the delivery of PO# 5707.
2. Review and discuss the current situation of both Stock and Back Orders.
3. Ensure that all KLC orders is on the right track then try to resolve any nonconformity for the
pending orders.
4. Discuss the future cooperation for both parties.
5. Having a tour in TPCO facilities to evaluate their capabilities.
Observations and Experiences
During the visit, we noted the following summarized observations and experiences:
1. TPCO members was very welcoming where they offered transportation for us from/to the hotel
and TPCO location.
2. TPCO Deputy GM showed positive impression with this visit and he disclosed his thanks and
gratitude.
3. TPCO delivered a presentation about the facilities and explained the relationship between TPCO
and the recent acquirer (CITIC group).
4. Tour conducted to TPCO facilities in order to have deep comprehension on the manufacturing
process.
5. TPCO has a huge facilities and high precision equipment.
6. The work place environment is neat and clean also well organized.
7. The labours are very well trained and they have awareness of using PPE.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Discussion and Conclusions
Based on the discussion during the meetings, we came up with the following conclusion:
1. 1st day was completely assigned to review PO# 5707, we came up with the following result:
i.
Item#1 18”: Expedite the final inspection process then issuing the IRN on the following day,
the IRN already received as promised. After that, TPCO will book the nearest vessel to proceed
shipping immediately. ETD is 21st September 2023.
ii.
Item#2 20”: This line item was not the actual production schedule. Action has been taken to
push TPCO Planning Team also with presence of TPCO Deputy General Manager. As result,
TPCO agreed to put the item in the production line then NOI has issued on the following day
to confirm whole inspection activities till the final inspection. ETD 10th October 2023
iii. Item#3 24”: NOI has issued for the remaining inspection activities till final inspection, TPCO
will book the nearest vessel to proceed shipping immediately. ETD 10th October 2023
2. On the 2nd day of visit was open to discuss how to develop the business relationship between KLC
and TPCO.
3. Agreed that initial production plan provided for each order has to be fully met without any deviation.
4. Agreed from TPCO to provide quotations with accurate delivery time which will be also offered to
KLC client and it has to be committed from all parties.
5. During the meeting we suggested/discussed with TPCO Deputy GM for possibility of partnership and
they informed that currently they do not have sole agent in KSA and this proposal has taken
seriously by TPCO.
6. Accordingly, TPCO requested to send official proposal to work further on the partnership subject
after discussing this mater to KLC top management.
7. Also, TPCO will send someone to evaluate the capacity and capabilities of KLC for further study of
the partnership.
8. As a conclusion, we can describe this visit as successful based on the outcomes upon targeted
objectives.
9. Based on the feedback from Procurement Department and Aramco Direct Team, there was a
tangible improvement in TPCO response immediately after the visit, represented with providing
prompt update in each order.
Recommendations
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Jiuli Visit
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: SS Smlss Pipes.
Background Information
The current relationship between both parties is somewhat tense after Jiuli’s last visit to KSA. We noticed
minor changes in Jiuli support and cooperation. Moreover, we noticed gradual slight increases in prices
as well as the delivery time in their quotations. Accordingly, the main purpose of this visit is to reach a
level of agreement that serves the common benefit.
Objectives
The visit to Jiuli focuses to achieve the following main objectives:
1. Addressing KLC’s perspective on the recent conflict to alleviate the tension and foster a fresh
start.
2. Share with them KLC procurement’s plan, vision, and envisioned goals.
3. Clarify the reason behind their price changes and the increase in delivery time.
4. Discuss the possibility of enlarging the business between both parties and also find potential
ways and areas in which KLC can support to increase Jiuli’s market share in KSA.
5. Review the status of active orders and request Jiuli to expedite the process if possible.
6. To present the volume of our annual demand and show the future projections for the upcoming
year.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Observations and Experiences
During the visit, we noted the following observations and experiences:
1. Jiuli members was very excited for this visit specially when they came to know that a new
manager has taken over the Procurement Department and they showed eagerness to meet him.
2. Three main facilities have been visited, Fabrication Facility, SS Pipes Manufacturer and Raw
Material Facility.
3. Jiuli is 100% private company and they follow high standards, that’s was obvious on the three
visited facilities, all of them are huge and very well organized.
4. VP has attended the meeting along with strategy team besides sales team also.
5. In the beginning of the meeting, Jiuli expressed their dissatisfaction upon last visit, which they
described as unprofessional behaviour.
6. Main observations about Fabrication Facility:
i. Produces non-Aramco material.
ii. Participates in supplying big projects in the Middle East as well.
iii. Good opportunity to study the products for potential business expansion purposes.
7. SS Pipes Manufacturer:
i. Follows high standards.
ii. Has good capabilities and capacity.
iii. Has high quality equipment.
iv. Neat and calean work environment.
8. Raw Material Facility:
i. 70% of capacity allocated for domestic projects – Chinese Government Agreement.
ii. 30% of capacity allocated for overseas projects.
iii. Monthly production of raw material, 150 Ton/Monthly.
iv. Currently, they have orders of raw material of about 700 Ton/Monthly per line item
for most products. Hence, they are extremely overloaded which resulted in a long
delivery time and price increase.
Figure 1: Shaked hands to agreeing for future cooperation
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Discussion and Conclusions
Based on the discussion during the meetings, following conclusion came as result of this meeting:
1. Successfully absorbed the tension at the beginning of the meeting by explaining our stance on
this subject then we continued assuring our respect to Jiuli representatives and we clarified
the importance of our collaboration to increase the market share in KSA market.
2. An elaborated strategy has been disclosed which will be led by the new management of the
Procurement Department.
3. The VP shows his interest in collaborating after discussing the new strategy.
4. A partnership idea has proposed for discussion, initially we agreed to put 10% maximum
margin for EPC quotations and Jiuli will give same percentage if they directly participated.
5. Agreed to maximize the inspection activities as much as possible to reduce the number of
days per visit.
6. Jiuli is already establishing new facility for “Raw Material” to supply the high demand, this
facility is planned to be ready at the beginning of the new coming year.
7. The new “Raw Material Facility” is expected to solve both high prices and long delivery time
issues.
8. The existing “Raw Material Facility” produces 150K Ton yearly and by next year this number
will be multiplied by 2 after running the new facility. Accordingly, it is expected that both
prices and delivery time will be reduced by next year.
9. Agreed for the time being to support us in any inquiry they receive as much as possible but
also, they requested to bear with them until the coming year.
Figure 2: Presentation for Jiuli future strategy, presented for Glad materials
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Excerpts from Jiuli visit:
Figure 3: Jiuli exhibition
Figure 4: Tour inside the plant
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Figure 5: View nearby of Jiuli Hi Tech facility
Recommendations
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Anhui Sailings Visit
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: SS Smlss Pipes.
Background Information
Our transactions with Anhui Sailing are mediocre, we mainly approach them for non-Aramco orders.
Currently, we placed an order for TERRANOVA Stock Material and it was already dispatched recently..
Upon the submitted samples they do not have quality issues on final products. We aim to visit them to
evaluate their capabilities.
Observations and Experiences
During the visit, we noted the following observations and experiences:
1. Mr. Beyondit shows very much interest since we notified them with our intention of visit and
he was so friendly and supportive to get this meeting done with best scenario.
2. Anuhi Sailings is a business family owned by two siblings Brother and Sister, the entire work
done by them and their supervision.
3. They are a startup business we can describe it comparing with vintage pipes Chinses mills.
4. The office is located within undeveloped area and the factory is about 5 hours by car.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
5. As mentioned, it took around 5 hours to reach the factory and the warehouse was about
another 5 hours by car so it was very difficult to reach the warehouse facility, below Figures
for reference.
Figure 7: Material Loading
Figure 6: Material Packing
6. They only produce pipes in their facility, no flanges, no fittings.
7. In the factory there is only one Engineer (retired with experience, working in part time) the
rest are labours. The whole employees including the factory manager and security people is
about 35 persons.
8. There are no process procedures, no quality procedures (there is no start/end moving of
material) you can see final product and raw material mixed in one area.
Figure 8: Side from Interior Facility
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
9. More pictures inside the facility:
Figure 9: Picture for Final Products
Figure 11: Products Inspection
Figure 10: Products Processing
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
10. There are no ISO accreditations except the following in below Figures.
Figure 12: Certificate of Occupational
and Safety Management
Figure 13: Certificate of Quality
Management
Discussion and Conclusions
Based on the observation and experiences, following conclusion came as result of discussion during the
visit:
1. It is risky to deal with such capacity since there are alternatives in market with better
capabilities.
2. Not recommended to represent them to obtain vendor approvals such as SABIC, Ma’aden. at
this moment.
3. To be fair, they are open to receive any observations also they show interest to enhance their
inputs in order to develop the business. In addition, they are ready to work for issuing the
necessary accreditations.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
4. As per informed, they are building new facility and it will be ready for running on May 2024,
in this facility all the mess up will be avoided to be organized and clean.
Figure 14: The New Under Construction Facility (26,254 m2)
Recommendations

It is recommended to work with them for small orders as per their capacity, not for sensitive
projects considering the risk night encountered in quality and that to save the reputation of
our company.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Baofeng Steel Visit
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: CS Welded Pipes.
Background Information
Baofeng is one of the new Chinese mills which added in past few years. Basically, we source from
TERRANOVA material after we supported to register them as a vendor in NWC for TERRANOVA Brand.
On last stock replenishment they lost the competition referring to the comparison sheet. Subsequently,
our main topic is to discuss the pricing during this visit.
Objectives
Below is the list of objectives to be achieved during the visit:
1. Discuss how much Baofeng Steel is involved in KSA market and who is their main clients.
2. Discuss about possible contract agreement; to register Baofeng Steel as approved vendor for
KSA End-users such as NWC … etc.
3. Discuss the quality issues KLC encountered with last order.
4. Improving the prices/delivery time in received quotations.
Observations and Experiences
Below listed the following observations and experiences:
1. Unfortunately, Baofeng was totally uncooperative and they did not show any interest for this visit
This might be because of previous history, but after all they did not cooperate.
2. Their Location is in a country side, it is somehow risky to go alone for such places specially for
strangers. Hence, we decided to discard this visit.
Recommendations
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Zhong Gang Lian
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: NKK/CS Pipes.
Background Information
Zhong Gang Lian has been targeted as new source to be visited, this factory was put on the list during
our market search for NKK material and we already compared their prices in price tabulation. The
factory is located in Shandong which is famous as industrial city.
Objectives
Below is the list of objectives to be achieved during the visit:
1. Build good relationship.
2. Negotiate about last inquiry of NKK material.
3. Request design of MTC and COO.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Observations and Experiences
Below listed the following observations and experiences:
1. Located in industrial area of Shandong City, most of around mills is producing CS Pipes.
2. Inside the plant there are three divisions; Sales Offices, Manufacturing area and Warehouse.
3. They are manufacturing and trading company at the same time. We also noticed that TPCO
pipes are available in their selves.
4. The warehouse is really huge and they stock variety of products.
5. They produce up to 12” CS Pipes.
6. The manufacture is fully automated also very well organized, the process flow is almost
similar to TPCO’s but with smaller area.
7. Production and Quality procedures is excellently followed.
8. All inspection test activities are done in-house.
9. There was a language barrier, they have very simple and basic English. So, most of the time
we used voice translator and that was the only flaw we experienced.
10. The number of employees is relatively small, the reason of that is the entire factory is
automated so they do not need to hire much labours.
Discussion and Conclusions
The following conclusion came as result of discussion during the visit:
1.
2.
3.
4.
They approved to modify the MTC/COO design as required.
They have frequent clients in KSA.
Within our area, the most volume of their exports is Turkey.
In case we have an order with sizes larger than 12” they can outsource it guarantying the
quality same. Additionally, MTC and all documentations will be under their name.
5. Upon the evaluation, they look processional and promising, we could try them for some
orders then we might support them for vendor registration in KSA end users.
6. Requested to provide 28% discount upon the submitted offer from NKK material.
7. Below table for in/out figures for a financial year:
Description
Average of Sales/Ton for the last 4 months
Forecast in January 2023
Actual Sales in February 2023
Forecast in March 2023
Actual Sales in April 2023
Amount
5,714,285.71 USD
12,740.20 Tons
10,200 Tons
10,200 Tons
12,060 Tons
Table 1: Sights on Sales Performance of Zhong Gang Lian Co
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
8. Attached pictures for the manufacturer:
Figure 15: Material dispatch area
Figure 16: Automated production line
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Figure 17: Pipe production stages
Recommendations

In order to overcome the language barrier, it is recommended to work with them via emails in
case of partnership negotiating or vendor registration in KSA end users and that to assure the
comprehensive.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Shandong Meidi Steel
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: NKK/CS Pipes.
Background Information
Another targeted source to be visited for NKK material. Also, we already received prices in advance to be
studied before the visit. price tabulation. The factory is located in Shandong city, same as Zhong Gang
Lian manufacturer.
Objectives
Below is the list of objectives to be achieved during the visit:
1. Evaluate the capabilities.
2. Negotiate about last inquiry of NKK material.
Observations and Experiences
Below listed the following observations and experiences:
1. Located in the industrial area of Shandong City.
2. They have good capacity and capabilities, they can produce the material within 2-4 weeks,
ready to dispatch.
3. We noticed a logo different than shown in the quotation and email signature, we have
enquired for the reason then we have told Shandong Meidi Steel is a share holder with
Shandong Petroleum. Thus, we requested to submit a letter to confirm the relation nature
between the two names and they did not mind to submit such letter whenever it needed.
4. Seriousness was obvious to make business. besides, they inform their readiness if any
inspection required to be done on the products.
Discussion and Conclusions
The following conclusion came as result of discussion during the visit:
1. Provided quotation for NKK comparing to price of Zhong Gang Lian Co (pervious visit) is less
about 200K SAR.
2. 20% discount requested for NKK offer.
3. Agreed to discuss further about payment terms but initially we suggested 10% advance
payment instead of 20%
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
4. Attached pictures for the manufacturer:
Figure 18: Raw material and final products arrangement
Figure 19: Raw material processing machine
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Figure 20: Tag with Shandong Petroleum logo
Figure 21: Raw material handling
Recommendations

Recommended to assign TPI inspector for the first two orders to ensure the quality.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994
‫شركة الكفاءة المحدودة‬
ALKAFAA LIMITED COMPANY
Changyi Steel
Date/Time of visit:
Duration of visit:
Attendance:
Product Scope: CS Smlss Pipes & Plates.
Background Information
As a plan to expand KLC range of supply, we aimed to study MRO requirements then we tried to
targeted sources for those material.
Objectives
Below is the list of objectives to be achieved during the visit:
1. Evaluate the mill
2. Negotiate for partnership if possible.
Observations and Experiences
Unfortunately, the targeted mill was fake. The contacted person copied all genuine logos and
email domain of the real targeted mail but when we reached the designated place, we found it a
very small office then the person admitted that was fake location.
We will try to find out the real contact for further business approach.
C.R 2050013593 Chamber of Commerce 8145
Limited Liability Co.Capital (5002240) Five MillionsTwo Thousand Two Hundred Fourty Saudi Riyals
only
H.O.: P.O. Box 8849, Dammam 32275, Kingdom of Saudi Arabia – Main Phone No.
0138260994
www.alkafaa.com
8145 ‫ رقم العضوية‬-2050013593 ‫سجل تجاري‬
‫) خمسة مليون و ألفين و مئتان وأربعون ريالا‬5002240( ‫ذات مسؤلية محدودة رأس المال‬
‫ الرقم الرئيسي‬-‫ المملكة العربية السعودية‬- 32275 ‫ الدمام‬8849 .‫ب‬.‫ ص‬:‫المركز الرئيسي‬
0138260994

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