Suido Kiko s activities in KSA. Suido Kiko Kaisha, LTD

Transcription

1 Suido Kiko s activities in KSA Suido Kiko Kaisha, LTD 1

2 Contents Introduction to Suido Kiko Reason to go to KSA Suido Kiko s Activities in the Middle East Special notes regarding business in KSA 2

3 Introduction Name Suido Kiko Kaisha, Ltd. Established August, 1924 Capital 1,947 million Yen Head office Tokyo, Japan Activities EPC for water & wastewater O&M for water & wastewater Manufacturing equipment for water & wastewater Sales of chemicals 3

4 Suido Kiko Domestic Reference Water treatment plant where SKK installed systems or equipment Quantity base Number of Plants Over 500 M CMD 200~500 M CMD 100~200 M CMD Hokkaido Over 100 sites 30~100 sites 57.% 10~30 sites 25% 50~100 MCMD Under 10 sites Under 50 M CMD Hyogo Daily Max. Qty Total 6,638M CMD Total 5,324 For cities Fukuoka Chiba Saitama 15% Osaka Kanagawa Aichi Tokyo Total 7,413 For villages 水道統計施設 業務編 (H19 年版 ) をもとに作成 水道統計施設 業務編 (H19 年版 ) をもとに作成 Surveyed by SKK 4

5 5 Suido Kiko Overseas Activities Governmental Aid project reference from 1959 (about 130 projects) Joint venture companies in China and Saudi Arabia Engineering support and technical cooperation to overseas EPC companies (membrane systems and other products) Overseas Activities

6 Contents Introduction to Suido Kiko Reason to go to KSA Suido Kiko s Activities in the Middle East Special notes regarding business in KSA 6

7 Reason to go to KSA We decided to go to KSA in The water business market in Japan is tending to shrink although the number of competitors is increasing. On the other hand, there are many countries that don t have sufficient infrastructure. Saudi Arabia is one of those countries, and its population is increasing as well. In addition to that, Saudi Arabia needs seawater desalination, sewage treatment & recycling which our membrane treatment technology can be applied to. Our local partner (Saudi Brothers Commercial Company) has already had good experience in the water sector as a private water supplier (SAWACO). 7

8 Contents Introduction to Suido Kiko Reason to go to KSA Suido Kiko s Activities in the Middle East Special notes regarding business in KSA 8

9 Overseas base (Saudi Arabia) Name Suido Kiko Middle East (SKME) Est. Feb Capital About 1,870,000US$ (Equity ratio 49%) No. of employees 100 HQ Jeddah Branches Riyadh, Khobar, Abu Dhabi (UAE) Activities SKK 1 Seawater Desalination by MF/UF+SWRO 10,000m3/d plant under construction 2 Design-Construction-Operation of MBR sewage treatment plant Capacity of 30,000m3/d 3 Mobile RO & MBR for labor camp for big construction projects 4 Recycling of industrial wastewater by MBR + RO 5 Sister company, SAWACO does BOO for SWRO plant SKME SBCC (Partner) SAWACO 9

10 SKME:Location(Jeddah) The second largest city in KSA. Population is around 4 million. Many pilgrims visit Jeddah throughout the year because the city is near the holy place of Islam, Mecca. Jeddah is also an economic city, and many international companies have offices here. People come from all over the world. 10

11 SKME:Working environment Top Left: Building Bottom Left: Entrance Top Center: Office Bottom Center: Employees (100) Top Right: House for dispatch engineer 11

12 12 SKME s activities - Purification of Jeddah Misk Lake JEDDAH Overview of Misk Lake 12

13 13 SKME s activities - Purification of Jeddah Misk Lake The MBR system was chosen for the sewage treatment system & to contribute to improving the environment around Misk Lake (under operation by SKME) Sewage lake cleanup project awards Global Water Awards 2011 Article about SKME published in local paper (Gulf news) 13

14 14 SKME s activities - Purification of Jeddah Misk Lake 14

15 Contents Introduction to Suido Kiko Reason to go to KSA Activities of Suido Kiko in the Middle East Special notes regarding business in KSA 15

16 Special Notes (1/3) The Saudi Market is promising, but we should be aware of the following points before entering this market. Human resources Saudization The difficulties of acquiring a work visa The need for OJT (On-the-Job-Training) after recruitment The high salary required for a skilled engineer & manager The fact that few engineers have sufficient experience in water treatment The difficulty of managing employees who come from a different cultural background Note: SKME s employees come from more than 10 countries (mainly from the Middle East and Asia) 16

17 Special Notes (2/3) Culture Daily communication with clients, partners and employees is very important because the cultures of KSA and Japan are totally different. Try to follow up more than 100%. Corporate Tax and Zakat The local partner pays Zakat and the international partner pays corporate tax. The above tax and Zakat are to be paid by the partner (not by a joint venture). 17

18 Special Notes (3/3) Procurement Most equipment is available in the local market or Europe. Generally, Japanese production cost is higher than the above. In addition, European suppliers have branches or agents in KSA for after-sales. To introduce more Japanese products, Japanese suppliers should build a good support system in KSA. SKME example Membrane: Mainly from Japan Equipment & Pumps: Europe Manufactured products & pipes: Local 18

19 Summary Saudi Arabia still needs a better water & wastewater infrastructure. We believe that not only our technology, but also that of other Japanese companies, can contribute to resolving their issues. 19

20 Thank you very much Suido Kiko Kaisha, LTD Sakuragaoka, Setagaya-ku, Tokyo , JAPAN Tel: Fax: