Aerated Concrete Industries Company (ACICO) was established in June 1990 as a Kuwait Shareholding Closed Company (K.S.C.C.) under license from Hebel International Germany.
The company's plants are located in Shuaibah Industrial Area in the State of Kuwait, UAE, Qatar, and Saudi Arabia. Heavy duty, light weight building units of reinforced and non-reinforced concrete are manufactured with the most advanced autoclaves using basic raw materials such as quartz sand, cement, and lime.
In order to expand the size of its business and the Company's revenue sources, ACICO entered the real estate sector by investing in the establishment of Al Masaken Co. The success of Al Masaken Co. and the distinguished role it played in the housing process in Kuwait prompted ACICO to acquire Al Masaken Co. later that year.
In accordance with its goal of continual expansion through greater diversification of revenue sources and to maintain greater stability and consistency in strong annual growth in revenues and profits, the Company added a contracting company to its array of businesses. ACICO acquired 75% of Ghassan Ahmad Al Khaled Company & Co. (GAK). This collaboration would ensure the absolute integration of a reputable aerated concrete production company and a well established experienced contracting company.
The company's industrial and real estate business has gone far beyond the boundaries of Kuwait to reach other GCC countries. ACICO has become the target among investors in terms of participating in projects or offering investment opportunities.
In the industrial business, ACICO installed a Dubai-based Emirates Aerated Concrete Industries Company (E-ACICO) plant, for the production of insulated blocks of autoclaved aerated concrete (AAC) in the Jebel Ali Industrial Area of Dubai, United Arab Emirates (UAE). The plant is owned entirely by ACICO and began its experimental production in April 2005. With its intention of expanding into all countries of the GCC, ACICO contributed a 45% stake in the installment of a plant, S-ACICO, for the production of aerated reinforced and non-reinforced concretes in the Kingdom of Saudi Arabia (KSA). The project is in its initial stage and is expected to begin production in the first quarter of 2006.
In line with its expansion into UAE and KSA, ACICO contributed a 49% stake in the installment of a plant in Qatar (Q-ACICO), for the production of aerated reinforced and nonreinforced concrete. Experimental production at the plant is expected to begin in the first quarter of 2007.
With the purpose of diversifying its business interests and taking advantage of the booming real estate development sector, ACICO bought several plots of land in the United Arab Emirates to set up different projects with high expected yields such as:
- One plot of land in Dubai Healthcare City composed of medical clinics and offices covering up to 7,000 square meters.
- One plot of land on Shaikh Zayed Road with a total estimated area of 3,700 square meters. It will be composed of one 52 storey five-star hotel and one multipurpose office space/residential tower.
As a result of the spectacular success achieved by ACICO - Kuwait using the autoclaved aerated concrete (AAC) system in the real estate sector, the company decided to pursue opportunities and enter the market in the United Arab Emirates.
The company has signed several contracts for the design of large housing projects using E-ACICO’s blocks and aerated concrete panels with a local contracting company in UAE.
These contracts would provide supply for approximately 666 houses belonging to the Ministry of Defense. This created a stepping stone for the spread of ACICO’s superior building system with AAC in UAE.
- Establish plants for the production of reinforced and non-reinforced Autoclaved Aerated Concrete (AAC) of all types, sizes, and supplementary material for construction to meet demand.
- Produce all ancillary materials related to the Hebel Construction System.
- Import and export all materials, supplementary materials and tools for building and construction.
- Acquire and partner with other companies that carry out similar activities in order to achieve its goals for robust growth in Kuwait and abroad through greater diversification of revenue sources. The company's sights are set on reaching a new pinnacle of success through greater diversification of revenue sources, designed to increase shareholder return on investment. The company has added a few other goals:
The company obtained its license from Hebel International-Germany which is a leading company in the global aerated concrete industry. Since then, the company has been manufacturing heat insulated aerated concrete of all types and sizes with state-of-the-art global technologies and the latest in German technological innovations.
Aerated Concrete Industries Company (ACICO) has the exclusive right in the production of Hebel construction material inside Kuwait. It is the dominant leading exporter for such material to the countries of the Gulf Corporation Council (GCC) and is considered one of the most specialized companies in the market for reinforced aerated concrete.
The company has expanded its production of aerated concrete by relying on its own capacities and its strong partnership with Hebel International Company. It invested its skills in the production of building units that met the requirements and needs of local and foreign markets. As demand for aerated concrete products increased and the company’s business grew, ACICO installed two additional production plants, one for block production and one for lime production in Kuwait
Operating Performance
Company’s operating performance is considered positive as a result of its efforts at cost controlling. The Contracting Division made a big contribution in building company’s revenue and was well supported by the Industrial Division. Real estate activity has also contributed in increasing company’s profit to a higher level. One of company’s major projects in the Dubai Health Care City has been reaping a profit of around five million Kuwaiti Dinar. Year 2006 witnessed an increase in the profitability ratio by 68% versus year 2005. Revenues have also increased by 60% compared to year 2005.
Management strategy of income resources diversification was the main reason in achieving the higher operating performance. Key ratios of year 2006 referring to positive growth are as follows:
- Net profit percentage to revenues was 25%.
- Return on shareholders’ equity percentage was 28%, reflecting management’s capability at investing shareholders’ equity.
- Return on total assets percentage increased remarkably to reach up to 14%.
Market Performance Ratios
Market performance ratios contain ratios used by investors to evaluate stock circulation performance in the Stock Exchange Market and they are as shown below:
- Earnings per share for the year 2006 amounted to 92.4 fils. This splendid achievement in profitability is a result of distinguish financial performance.
- Stock book value for the year 2006 amounted to 364 fils.
- Stock market value amounted to 465 fils as of December 2006 (closing date). Market value versus book value rated to 1.3 times and market price versus profitability rated to almost 5 times.
Operating and Financial Ratios
A close look to the important Operating and Financial Ratios
Share's Profitability (Fils)
Return on Assets (%)
Return on Shareholders' Equity (%)
Nett Profit (Million KD)
Total Assets (Million KD)
Shareholders' Equity (Million KD)
ACICO and Hebel International - Germany
Autoclaved Aerated Concrete (AAC) is a lightweight concrete that originated in Germany at the turn of the 20th century. It was developed by Josef Hebel, a building contractor looking for a more cost effective building system using a lighter yet highly resistant material. AAC soon gained popularity among architects and builders, who utilized its strength and light weight in all types of construction.
In 1961 the first home was built from Hebel AAC and the next year a further division, Hebel House, was formed to specialize in residential project throughout Germany. Today the product has won wide acceptance around the world.
ACICO was established and received its license from Hebel International - Germany in 1990 prior to Iraq’s invasion of Kuwait. Due to this the company was not able to begin production until 1994, where its plant was included as a member of the 45 plants of Hebel International.
ACICO became a leading agent for Hebel in the GCC producing all Hebel reinforced and non-reinforced building units. As a result of AAC’s first-rate quality and superior properties (such as thermal insulation and fire resistance, which can only be achieved in traditional systems through the combination of different materials), Hebel was awarded the "baustoffmarkt" Oscar in 1995.
Building with Aerated Concrete System
Autoclaved Aerated Concrete (AAC) is an excellent option in any type of construction. ACICO produces its AAC material under the most strict quality standards. AAC has several operating and physical features, is long lasting and does not degrade with time.
Advantages of Aerated Concrete
Lightweight Building Material
- Four times lighter than traditional concrete.
- Low transportation cost.
- Easy workability and handling, providing excellent productivity.
- Easily installed. They are ready to use so their placement is faster thus requiring less labor time.
- Low cost foundations. Uses simple lifting tools.
Prefabricated Building Units
- Fine precision of dimensions, this enables builders to save in finishes and obtain optimal structural performance.
- Quickly and easily installed.
- Uses less manpower to complete the construction.
- Low construction cost.
Excellent Heat Insulator
- Low energy consumption, resulting in energy savings.
- No need to add a heat insulator, thus saving costs.
- Save energy on air-conditioning thus saving costs.
Environmentally Safe Building Material
- Does not degrade with time, ensuring the longevity of the construction.
- Only uses raw materials, and does not have any toxic substances or emit odors.
- Its production, management and disposal do not represent any health risks or damage the environment.
Excellent Fire Resistance
- A width of around 15 cm only needed to resist 1000 °C for 180 minutes.
- Non-combustible and fire resistant.
ACICO's record of success has been predicated on a highly effective growth strategy. ACICO has transformed their business into a global enterprise with a broad portfolio of products and accomplishments. ACICO has achieved record production levels; these results stand as compelling testimony to the strength of our growing company and to the enthusiastic support of our clientele around the GCC.
Emanating from our supporting strategies, our growth in production is attributable to the success of the company in taking control of the local market and firmly gaining ground in the export of AAC blocks and reinforced panels.
The Delivery of Blocks
Locally, ACICO has supplied AAC blocks to several different private and public sectors. Among them:
- Delivery of blocks for external walls for projects of the Public Authority for Housing Welfare, covering around 1,500 villas.
- Delivery of blocks for external and internal walls in various projects; approximately 12,000 villas.
- Delivery of blocks for ACICO Administrative Tower and different housing and commercial towers.
Internationally, the company has exported blocks since 1995. Initial primary export was to Thailand and then to the countries of the Gulf Cooperation Council (GCC) - Kingdom of Bahrain, Kuwait, Sultanate of Oman, Qatar, Kingdom of Saudi Arabia (KSA) and the United Arab Emirates (UAE).
The following are some of the projects
- Jumeirah Beach Residence - Jumeirah, Dubai, UAE.
- Conference Palace - Abu Dhabi, UAE.
- Marina Project - Dubai, UAE.
- Palm, Al Nakheel - Dubai, UAE.
- Old City Project - Dubai
- Residential Towers - Sharjah
- Bin Battuta Complex - Dubai
- Arab Tower - Dubai
- Several other projects in the GCC
The Delivery of Reinforced and Non- Reinforced AAC System Projects
Locally, ACICO has been able to successfully carry out a number of projects using the reinforced and nonreinforced autoclaved aerated concrete system. All the projects have been completed by the contracting company Ghassan Ahmad Al Khaled Company & Co. that is specialized and experienced in using the load bearing wall system.
The following are some of the projects
- Al-Wafra housing project completing 234 residential villas.
- Resort projects, in several coastal regions of Kuwait, such as Khairan, Bneider and Egaila.
- School projects, both private and public.
- All Al Masaken villa projects.
- Other real estate companies’ projects that prefer to use the AAC load bearing wall system instead of the traditional skeleton system.
- Several governmental building projects.
Internationally, several contracts were signed in recent years
- A contract for the delivery of AAC building units for 242 villas - Abu Dhabi, UAE.
- A contract for the delivery of AAC building units for 60 villas - Al Ain, UAE.
- A contract for the delivery of AAC building units for 300 villas - Abu Dhabi, Shaikh Zayed City, Al Silaa Region, UAE.
- A contract for the delivery of AAC building units for 24 villas - Abu Dhabi, UAE.
- A contract for the delivery of AAC building units for 15 villas - Al Ain, UAE.