A new participant in Kuwait’s petrochemicals scene

Kuwait

Khaled Bandar Aljeri, general manager of United Integrated Holding Group, and Hamad Aljeri, board member, talk to The Energy Year about pursuing new ventures in refining and how Group companies help support local businesses and protect the environment. United Integrated Holding is a Kuwaiti conglomerate with businesses in the elevation, manufacturing, trading and oil and gas sectors, among others.

What measures has United Integrated Holding Group taken to achieve greater autonomy in manufacturing?
Khaled Bandal ALJERI: In the elevator segment, our market share is approximately 40%. Our factories span over 10,000 square metres and we have an additional 15,000 square metres of storage space in Mina Abdullah. With these assets and our technical support capabilities, we can react quickly to the needs of the market, which gives us an advantage over foreign suppliers.
One thing we do is work with other elevator companies in Kuwait that may not have the cashflow to source components internationally. As a solution, we offer manufacturing services, providing them with products they can install and maintain.
We heavily invested in our R&D department, which plays a critical role in advancing technological capabilities within the organisation. This may include researching new technologies, evaluating potential applications and integrating them into products, processes or systems to enhance performance, efficiency and quality.

How much of your portfolio is dedicated to the oil and gas sector?
Hamad ALJERI: KOC and KNPC represent around 20-30% of our elevator business. In 2020, we invested in our first petroleum products refinery, which produces two types of diesel fuel. Following that, in 2021, we embarked on our second refinery project, which yields two types of kerosene. We have been investing in R&D to diversify our product range.
Obtaining the licence to transition into a third product has posed some challenges. The refineries have a combined monthly production capacity of 1,350 tonnes. They are run by two Group companies, Kuwait White Spirit National Factory and the Triplex Group, which owns KIPF [Kuwait Integrated Petrochemical Factory].

Does the company plan to increase its production of chemical products in Kuwait?
HA: Our current focus is to transform chemicals into end products within Kuwait, rather than selling them abroad for processing and then importing the final product. We aim to establish Kuwait as a direct manufacturer of these goods, but it is challenging to obtain the necessary technology and investment. Our intention to shift towards domestic manufacturing aligns with our country’s economic goals.

How does the company help protect Kuwait’s environment?
HA: In 2019, we established our United Factory for Compressors and Refrigerants, where we help address the issue of discarding AC refrigerants. In Kuwait, refrigerant tanks are typically used only once and then discarded with about 10% of the gas remaining inside.
That 10% is not just a waste, it is bad for the environment and the ozone layer. To combat this, we created a 2,000-square-metre refilling station where, rather than disposing of their gas cylinders after use, customers can refill them, thereby reducing waste and environmental impact.
We have implemented a procedure to extract the remaining gas safely and efficiently. Using a specialised vacuum system, we extract the residual gas from the cylinders before transporting it to our facility for proper treatment and cleaning. This process ensures that as much gas as possible is recovered and reused, reducing both waste and environmental harm.

What are the company’s goals for the future?
KA: In the petrochemicals sector, we are actively seeking opportunities to acquire new companies that will strengthen our market share and capabilities. For Triplex, our objective is ambitious, despite it being a new addition to the Group: we want to boost its profits within the holding by 50%.
In oil and gas, we are currently in discussions to provide fabrication services to drilling operators. We have already signed some agreements and, even though they are relatively small, they will help our entry into the sector.

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