Glass & Ceramics Co

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: State Company for Glass & Ceramics Industry Sector Brief Description Manufacturer of standard sheet glass and ceramic tiles for construction. Also produces consumer glass-ware. Revenue in 2002 (Iraqi Dinars '000s) 7066204 (Mgmt originally claimed over 3x this amount) # of Employees 2366 Annual Employee Salaries & Bonus 2006182 Headquarters Address A Ramadi, near city center. At confluence of Euphrates and Warai River, go South. Plant is on R. 2. Company Highlights Glass factory is old and outdated - built in 1959 by Russian company. Produces sheet glass, not more advanced float glass. Employees are poorly trained. Ceramic factory is relatively new, but is 20% the size of competitive facilities. No economies of scale. Production creates 25% wastage - an extraordinarily high amount. World Bank believes Company is not salvagable in free market - inefficient and low quality - and should be closed immediately. Company received either 4.8M or 10.0M Euro (unclear) in MOU subsidies. Either amount is greater than revenue. Company is grossly unprofitable if it can not raise prices dramatically (which does not seem possible). Allocated $1.15M USD for 2H 2003 operating budget and provided with 1 mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Glass Factory Anbar A Ramadi 42 15' 33 25' 0 3 mw Ceramics Factory Anbar A Ramadi 43 15' 33 25' 0 5 mw Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items Initially built in 1959 and 1971, paid 3,195 I.D. (approx $10M USD at historical exchange rate). Management has no idea what the P&E was worth before the war. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Plate Glass M 21450 11830 6747 1962032 Consumer Glassware Ton 21650 11600 1891 3091522 Ceramic Tiles 6000 54000 1082 208131 Other (unidentified) Ton 58444 2800 10449 1804519 Description of Importance of Products to Other Iraqi Industries Products needed for reconstruction. None that couldn't be provided through cheaper imports, though. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Private Industry 1900000 Y Glass and ceramic products Trade Ministry 170000 Y Glass and ceramic products The SC for Soft Drinks 3000000 Y Bottles at avg price of 120 ID per unit 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing State Co for Geo Survey & Mining 308000 Y All major raw materials Baghdad Company 114000 Y Sodium carbonate Al Sadoon Co 91000 Y Limestone, dolomite, flint Current Payment Terms From Suppliers Upon receipt of goods. 7. Imports & Exports 2002 Import Markets for Raw Materials Minimal, most raw materials are locally supplied. Potential Import Markets in Free Market 2002 Export Markets for Finished Products Syria. In total $12,000 USD from sodium silicate liquid. $60 USD per ton. Potential Export Markets in Free Market Potential to export 2500 tons / year of products to Syria, Jordan and other Arabic countries at $60 USD per ton. Only valued at $150K USD. 8. Competition Description of Competitive Situation Significant competition from imports. Ministry of Trade competes with imported ceramic tiles. Syrian and Lebanese companies compete with bottles. Iran competes with sheet glass. Market Share Description Company satisfies around 50% of Iraqi market. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Limited to one vehicle stolen and one damaged. Current Operating Status Not operating as of late June, but will restart with electricity supply. Immediate Property & Equipment Needs To Restart Operations None Total Cost to Return to Pre-War Condition Zero