Follow up visit report - Essay Example

Company MABCO Prefabricated Building Co. Ltd. Report: 02/10 Calling on: Mr. Abdullah -Factory Manager Mr. Khalid -Chief Engineer Called by: Mr. Tom Mr. Alexa Reason for call: Follow up On 03/11/1432 H, corresponding to an invitation dated 01/10/2011; Mrs. Alexa and Mr. Alexa visited the National Polystyrene Factory in Riyadh, Kingdom of Saudi Arabia and met with above mentioned representatives. Purpose of the Visit: Meeting factory’s top management to assess their future expansion needs.

Factory information: National Polystyrene was established in 1965 in Riyadh where its main factory is located. In addition, the company has three other smaller factories in Jeddah, Yanbu and Dammam. Currently, it’s considered a pioneer in the field of precast concrete elements and prefab construction for construction sites, schools, hospitals and so on. The factory has bright future business outlook based on its high quality products it offers to both local and regional markets. In addition, for the last 25 years National Polystyrene exports its products to most major market in the Middle East markets such as Oman, Kuwait, UAE, Bahrain and Egypt.

Currently, they are utilizing 100% of their operation capacity of approximately 1000 skilled workers in two day/night shift system. Site visit Assertions: Based on our visit; the factorys atmosphere seems to be busy, meets modern conditions of cleanliness, has high safety standards and adequate lighting. Furthermore, operators worked efficiently under close supervision and wore full protective clothing. Moreover, it has strict quality products inspections conducted regularly by quality control personnel.

They also have an efficient logistical and transportation system. Overall, our impression was positive. Financial and management information: The factory financial statement indicates that it is financially healthy and their business is thriving. The factory could increase their profit by 35% through steady expansion of its markets. Its record of funds indicates that the company has capacity to pay NCB loan to Yanbu Factory on due date. The company has an efficient and effective management and strives to maintain high quality standards by following its Standardization policy on every administrative level.

Expansion Needs: Factory representatives expressed urgent need for additional loan from the National Commercial Bank (NCB). This will enable them to exploit effectively high demand in the region. In addition, it will enhance exports to Jordan and Syria by opening another factory in Tabuk. The technical feasibility report for construction of the new factory is available and ready to be assessed. In addition, chief accountants report estimates total cost for the new factory to be SR 125 million.

Therefore, it intends to apply for NCB loan to finance 40% of the project cost. Follow up and Recommendations: In order to make further assessments and evaluations regarding the request of constructing a new factory, the following are required: 1. Further site visits need to be organized to accurately make accurate judgments regarding the expansion needs 2. Commencement of loan application procedures 3. Thorough examination of both technical report and chief accountant reports of the proposed new factory Conclusion: At the end of the visit, we expressed our special thanks to the factorys representatives.

We informed them that their request is important and would be evaluated timely upon receiving the above documents.