ACICO has implemented a strategy in expanding its business in the Middle East. It has installed autoclaved aerated concrete (AAC) plants locally and overseas, keeping pace with the increasing demand for autoclaved aerated concrete construction material and continuing to grow as one of the leading construction manufacturing companies in the region.

In Kuwait, the Company now owns and operates three plants including a lime plant. The plants were installed and equipped with the latest technology and equipment. Highly qualified technical staff and skilled personnel with long specific experience in AAC run the plants.

In 1994, the Company’s first plant started to produce building units of reinforced and non-reinforced autoclave aerated concrete, as per a license given to them by Hebel International - Germany.

The Company occupies a leading position in the GCC in the production of reinforced aerated concrete in its building units, including slabs and wall panels, in addition to lintels and stairs, as well as the tongue and groove block production.

Within a year of beginning production, the company built a secondary treatment plant for developing reinforced panels. This plant uses specialized cutting equipment which allows for efficient customization of panels to meet design requirements. During that same year the company installed a dry mortar plant which produce ready mix cement gluefor block bonding, mortar for plaster and waterproofing, in addition to adhesive for ceramic tiles.

Company's Plants

In an attempt to achieve selfsufficiency in raw materials before opening the second plant and increasing the production capacity, ACICO established a lime plant in 2000, thereby adding a source of profitability to the industrial sector of the company.

In 2001, the company installed a new plant for the production of the most recent ACICO "tongue and groove with handle" blocks. This new design makes handling the blocks much more efficient and reflects the company's commitment to investing in the latest technologies thereby distinguishing themselves from the competition.

ACICO achieved unprecedented success internationally when it was able to produce millions of cubic meters of aerated concrete from the first cubic meter it produced in 1994.

The company’s management succeeded in achieving its goals in terms of increasing its operating profits. It accomplished this by investing all its capabilities in managing its production and stock according to a defined time schedule, via integrated work plans. The company streamlined the use of its resources thus allowing it to achieve a high operating performance.

The United Arab Emirates (UAE)

The United Arab Emirates (UAE) is where the Company made its first industrial expansion overseas. ACICO installed a Dubai-based Emirates Aerated Concrete Industries Company (E-ACICO) plant to produce reintorud and non reintorud aerated concrete in the Jebel Ali Industrial Area of Dubai.

Because of the company’s experience and expertise in installing plants, it was able to complete installation in record time and began block production in March 2005 and tollowed by remored and non reintorud in 2007. As a result of ACICO - Kuwait’s achievements and positive reputation, and prior marketing done in UAE, the plant was able to sell its full capacity blocks for 2005. This has given the factory a good reputation and high net profit predictions.

In line with the company’s plan to expand into the Middle East in particular the GCC, ACICO - Kuwait established a Saudi Aerated Concrete Industries Company (S-ACICO) plant to produce insulated blocks and reinforced panels of autoclaved aerated concrete in Al Jubail, the eastern region of the Kingdom of Saudi Arabia (KSA).

S-ACICO is a joint venture of Aerated Concrete Industries Company - Kuwait, Zamil Industrial Investment Company, and Hamed A. Al Zamil & Bros Company in KSA. ACICO owns 45% of the plant. This joint venture is expected to meet the increasing demand for AAC materials in KSA and the vicinity.

ACICO strategically chose the location and the production capacity of the plant to tactically cater to the growing demand of the eastern region of KSA, with the objective of exporting surplus production to Kingdom of Bahrain via the King Fahad Causeway. The factory is expected to start experimental production by the 2nd quarter of 2007. Once in full operation the factory will produce both reinforced and non-reinforced AAC materials.

ACICO continued to expand further into Qatar. ACICO signed a Foundation Contract for a Limited Company with Nasser Bin Khaled Al Thani & Sons Holding Co W.L.L. ACICO will install Qatar Aerated Concrete Industries Company (Q-ACICO) plant for the production of reinforced and non-reinforced aerated concrete by the end of 2004 with a 49% contribution by ACICO Kuwait. The plant is expected to start experimental production by the 2nd quarter of 2008.

ACICO's combination of long term experience, quality products and production capacity has led it to become a profitable corporation, relying on its own resources to manage all building design concepts.

The design professionals at ACICO have proven to be limited only by one's imagination. All their designs are backed by high standards and professionalism. The design professionals are responsible for working drawings and providing the plant with all the information needed, such as dimensions, to produce the reinforced AAC units. They are known for using their imagination and technical knowledge designing and building in harmony with the environment.

To complete and fulfill its projects, ACICO works in close cooperation with the contracting company Ghassan Ahmad Al-Khaled Company & Co. (GAK). This collaboration allows ACICO to benefit from GAK's long experience in the field of contracting in particular using autoclaved aerated concrete system in construction. This strong relationship has cemented the confidence of all their clientele, from governmental authorities to the private sector.

Al Masaken Real Estate Development Company

Al Masaken Real Estate Development Company (K.S.C.C.) was established in 1998 with ACICO - Kuwait owning 25% of its capital. The primary goal of the company is the ownership, development and sale of real estate.

Al Masaken was launched with the collaboration of ACICO's dedicated engineering team, which has expertise in designing buildings using the aerated concrete load bearing walls system.

Al Masaken initially faced several challenges when it first entered the market. Customers were used to the conventional skeleton system used to build houses and had considerable doubt concerning the quality of construction with the aerated concrete load bearing walls system. In addition, there were a few common misconceptions among customers such as: using the load bearing walls system could only produce box like looking houses that did not agree with our clientele’s taste. Furthermore, customers thought it would be impossible to make changes once the house was completed.

• Acquire, own, sell and develop real estate and land, within Kuwait and abroad.
• Organize real estate exhibitions related to the company's projects

Ghassan Ahmad Al Khaled & Co. (W.L.L.)

Ghassan Ahmad Al Khaled Company & Co. (W.L.L) was established in 1975. It entered the field of contracting and holds a favorable position in the market partly due to its new building concept of the load bearing wall system.

In 1982, Ghassan Ahmad Al Khaled Company & Co. W.L.L. (GAK), made its first steps into the market by importing construction material of aerated reinforced and non-reinforced concrete from Germany. It used this new system to complete several villas, along with other traditional projects. GAK believed in the unique characteristics of building with the autoclaved aerated concrete (AAC) system. It wanted to take advantage of this new innovative concrete material, tested and adopted by the Europeans; hence they conducted a feasibility study to install an AAC plant in Kuwait. The Company considered the feasibility of the project and received a license to build the plant. Shortly later, it gave up the land and granted the licenses to Aerated Concrete Industries Company (ACICO).

GAK continued to import AAC to execute its projects until the beginning of 1994. In 1994 GAK began to use concrete produced by ACICO in Kuwait. They were the first company to use this new technology in Kuwait and were the mainstay of the autoclaved aerated concrete load bearing wall system. This led GAK to position itself as a leading contractor. GAK's experience since the beginning of 1980 in using AAC and its reputation for excellent quality led to it being exclusively assigned the task of commercializing the AAC load bearing wall system in the early days of production. GAK is considered the qualified contractor of ACICO, whilst continuing to carry out contracts related to the conventional skeleton building system. The experience, reputation, and know-how of GAK was recognized with the company being classified as a first category company by the Central Tenders Committee (CTC) in Kuwait.

With the company’s objective to expand and pursue new business opportunities and obtain different revenue sources, GAK acquired Kuwait United Company for Pre-cast Concrete Systems (KUPS), a second category company by the CTC.KUPS specializes in prefabricated buildings made using the conventional skeleton system. This allows GAK to accommodate those companies that need to build using CTC category 1 and CTC category 2. KUPS produces all types of pre-cast concrete that can be used for its own projects or sold to the local market or to Ghassan Ahmad Al Khaled Company & Co.W.L.L.

Ghaida Ghassan Al Khaled Engineering Consultants

The office is considered the exclusive consultant for construction design drawings of all Aerated Concrete Industries Company (ACICO) projects which employ the autoclave aerated concrete (AAC) system of load bearing walls and are executed by Ghassan Ahmad Al Khaled Company & Co. (GAK).

The office initiated its business as an independent engineering consulting office. It provides a full range of engineering services, designs, tender documents and supervision for all kinds of projects including ACICO private housing projects, commercial towers, resorts and schools. TRENDS provides interior design including all related activities for finishing's and furniture.

Among the Office’s major projects in Kuwait

Design and Supervision of Al Waha Residential Complex
The project is located in Al Mahboola, Kuwait. It covers an area of 8,711.5 square meters. It includes five residential towers, ten villas, amenities such as parks, swimming pools, gym and others. The project is expected to be finalized and delivered in the second quarter of 2006.

Design of a five-star resort in United Arab Emirates
The project is located in Al Fujaira, UAE. It covers an area of 29,605 square meters. It is composed of 240 rooms and suites as well as several restaurants, cafés, recreational services, a health club, a bank and shops. It is expected to be finalized and delivered in the third quarter of 2006.

Al Jabria Residential Complex
The project will be executed under the supervision of the office. It consists of three residential towers, a swimming pool, gym and others.

Residential Buildings and Private Villas
The office has designed several private villas and residential buildings in different parts of Kuwait.

Design of a five-star resort in United Arab Emirates
The project is located in Al Fujaira, UAE. It covers an area of 29,605 square meters. It is composed of 240 rooms and suites as well as several restaurants, cafés, recreational services, a health club, a bank and shops. It is expected to be finalized and delivered in the third quarter of2006.

Al Jabria Residential Complex
The project will be executed under the supervision of the office. It consists of three residential towers, a swimming pool, gym and others.

Residential Buildings and Private Villas
The office has designed several private villas and residential buildings in different parts of Kuwait.

Ea'mmar & Estethmar Fund

The Fund’s goals are the following

• Provide new financial and real estate investment opportunities by investing in all kinds of real estate activities inside and outside Kuwait.
• Invest in the Company’s listed and nonlisted shares in the stock markets.
• Invest in all the instruments of the monetary markets such as deposits and bonds at the discretion of the Fund Manager, with a view to achieving considerable returns for participants exceeding the returns of alternative opportunities.
• Distribute the Fund’s capital for investment in the following sectors:

The real estate sector
The Fund Manager seeks to invest part of the capital in different real estate opportunities with high returns, including

• Housing real estate
• Commercial real estate
• Tourist real estate

The financial investment sector
Invest the available financial assets in different instruments of Kuwait Stock Exchange and some regional stock markets. These instruments include the following:

• The listed and non-listed shares in the stock market
• Deposits
• Bonds
• Future options

The Fund’s Investment Team

Fund Manager
Aerated Concrete Industries Company, Bayan Investment Company

Investment Trustee
Gulf Clearing House (KSC)

Supervisor
Central Bank of Kuwait

Owner
Kuwaiti companies and citizens as well as the citizens of GCC countries, Arabs and foreigners who have the right to participate in the Fund according to its Articles of Association.

The financial investment strategy

The Fund Manager seeks to invest in some selected shares according to the capitals of listed companies and to the circulation rate and profitability of shares. Besides this, the stability and growth of the companies’ profits and assets are taken into account. Furthermore, some of the investment opportunities taken are viewed by the Fund Manager as possible means to achieve high profits without exposing the Fund to the risky fluctuations of the market. Every investment opportunity is subject to exhaustive studies and research related to the market and its indices. In addition, all companies listed in the market are classified according to the indices of its financial statements and to its stable management.