$140m – Cost of land bought in Pune, India
500 – Number of low-bed trucks in CPC’s fleet
Despite the fact that it was established just five years ago, Construction Products Holding Company (CPC) has acquired vast experience through its acquisitions and has shown the strength of its strategy of vertical integration – effectively becoming part of the construction industry’s supply chain in those areas where it operates.
CPC’s selling point within Saudi Arabia is as a one-stop shop for construction materials. Its industrial parks are self-contained, with factories, warehouses, labour accommodation and recreational facilities, all incorporated in the same complex. This arrangement allows CPC to offer competitive prices.
It has also used its close relationship with contracting giant Saudi Binladin Group to good effect and it has been involved in some of the most prestigious construction projects in the kingdom. For example, CPC supplies construction materials to the King Abdulaziz Endowment project in Mecca, which comprises seven huge towers.
In September 2009, Premco, a CPC subsidiary, was awarded the $100m contract to supply 62,000 cubic metres of precast concrete to the Princess Noura bint Abdulrahman University for Women project in Riyadh.
In March 2009, another subsidiary, United Arab Aluminium Company, won a SR120m ($32m) contract to install aluminium and glass facades at the King Abdullah University for Science & Technology and completed the project within nine months.
In Riyadh, CPC has a government that has committed itself to a major construction programme with its new economic cities. CPC is well placed to benefit from this, and aims to replicate its success overseas.