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About SEDCO> New at SEDCO> Speeches
Speech of
Mr. Shuaib Ahmed, Chief Executive Officer,
Saudi Economic and Development Company (SEDCO)
Shangri-La Hotel, Singapore, 8 May 2007
A very good afternoon to:
His Excellency Dr. Mohamad Amin Kurdi, the Ambassador of the Kingdom of Saudi Arabia to the Republic of Singapore.
Miss Olivia Lum, Group Chief Executive Officer and President of HYFLUX Limited,
Mr. Abdallah Mohammed Ahmad Yateem, General Manager of LUBREC
Members of the press
and Distinguished guests,
I consider it a distinct honour and a privilege to be here today on this very pleasant occasion of signing of SEDCO’s collaboration with one of Singapore’s finest home grown companies, HYFLUX Limited, which is listed on the Singapore Stock Exchange and known for its innovative technologies, and with Lube Oil Re-Refining Company (LUBREC), based in Jeddah, Saudi Arabia. Our involvement in this venture and other investments and collaboration with Singaporean companies is a clear demonstration of the high regard we have for the Republic of Singapore as a leading place for partnership in local and global investments.
At SEDCO, we pride ourselves in being a pioneering private wealth management and investment organization that conducts its business according to Islamic Shari'ah guidelines. Based in Jeddah, with 30 years of history and more than 1,500 employees, SEDCO manages a wide and diversified spectrum of investments in real estate, in public and private equities and direct ownership interest in businesses in Saudi Arabia and around the world.
SEDCO’s Direct Investments Group, represented here by its Managing Director, Mr. Yousuf Khayat and its Vice President, Mr. Ng Chee Yuen, is responsible for taking direct equity stake in businesses in the Middle East and North Africa Region and selected countries in South Asia and South-East Asia. We in SEDCO are delighted that our Direct Investments Group has put together this significant partnership between SEDCO, HYFLUX and LUBREC.
This partnership with HYFLUX for investment in LUBREC for the used oil recycling business has been carefully considered for both commercial and environmental reasons. When we first looked at LUBREC, we recognized the commercial attractiveness of recycling used oil because of the prevailing high oil price and the continued lube oil deficit in the rapidly growing Middle East and South Asian markets. An independent study of the Saudi Arabian market showed that there is potentially 250 thousand metric tons of collectable used oil, of which only about 80 thousand metric tons are collected every year. Another compelling reason for SEDCO to invest in this venture is the environmental benefit to Saudi Arabia. Waste oil, if not properly disposed off, can pose a serious environmental hazard. Some of the prevailing technologies for used oil recycling can themselves be detrimental to the environment due to the need for high energy consumption, use of additional chemicals and the production of some toxic by-products. We have found that HYFLUX’s membrane technology allows for physical separation of waste from used oil without the need for chemical additives, and it can be done with lesser power consumption. There will also be no emission of pollutants into the air. As such, we derive triple benefits i.e. re-use available oil, not add pollutants into the environment and lower power consumption. We believe this environmentally responsible venture will receive enthusiastic support from the Government of the Kingdom of Saudi Arabia and the community.
SEDCO and HYFLUX have conducted extensive due diligence on the market. We are confident that LUBREC’s management team led by Mr. Abdullah Yateem and supported by SEDCO's and HYFLUX’s resources will be able to become a market leader in its field and deliver strong economic returns to the shareholders.
LUBREC will be the first roll-out of the joint SEDCO-HYFLUX venture in used oil recycling in the region. We expect the LUBREC plant to be ready for commissioning by the early to mid next year. After the successful commissioning and operation of the Plant, SEDCO and HYFLUX will seek to jointly expand the model to other selected markets in the Middle East and North Africa Region.
With this hope of a promising future, I extend my warm congratulations to the management teams of SEDCO, HYFLUX and LUBREC on the creation of this strategic alliance and wish them great success in this enterprise.
Thank you.
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