Al Nassr Al Adheem (NASCO)

# 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: Al Nasr Al Adheem State Company (NASCO) Sector Heavy Engineering Brief Description NASCO was founded in 1965, the first extension was carried out in 1978 followed by the second extension in 1992. NASCO has always been a state company. Manufacturing all kinds of heavy equipment for oil, petrochemical, electricity and water industries. Revenue in 2002 (Iraqi Dinars '000s) 16200000 # of Employees 1700 Annual Employee Salaries & Bonus 4,596,000 ID Headquarters Address Baghdad, Al Dora 2. Company Highlights Former Military Industrial Complex Company transferred to MIM in July 2003. Local demands on heavy engineering equipment is high. NASCO manufactures high pressure and LPG vessel, oil equipment, boilers, heat exchangers of different types, gate penstocks, hydro mechanical, storage tanks, distilation towers and rotating equipments. Has design and programming capabilities using advanced techniques in computing. Good capabilities in manufacturing irrigation equipment. Good experience in manufacturing energy tunnels and equipment for water treatment plants. NASCO is equiped with all necessary facilities and equipment for machining to high accuracy to international standards. Rolling all kinds of plates thickness up to 65mm in any diameter CNC Flame cutting machine plate cutting thickness 300mm, width 3m and 10m length. Pioneer in manufacturing strategic equipment for all sectors of industry. NASCO has three 27 meter boats originally built for Iraqi Army (90% of each boat is completed). When completed it will bring 3-4 milion USD. Allocated zero $ for 2H 2003 operating budget and provided with 2mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Heavy equipment plant Al Dora - Baghdad Heat Exchanger Shop Al Dora - Baghdad Storage tanks manufacturing Al Dora - Baghdad Boiler Manufacturing Shop Al Dora - Baghdad High Pressure Vessel Al Dora - Baghdad Boat manufacturing unit Al Dora - Baghdad Steel structure plant (Fabrication Shop) Al Dora - Baghdad Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items 1,016,000 ID in 31/12/02 + 1,474,000 ID (not finalised yet). Company was founded in 1963, First extension was in 1978, second extension was in 1992. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Storage tanks and pressure vessels Heat Exchanger Fire tube Boilers May continue manufacturing boats Top revenue generating product Storage tanks and pressure vessels, 7,000,000 Average price per unit = 1,400 / Ton Second revenue generating product Heat Exchangers, 3,200,000 Average price per unit = 2,200 / Ton Third revenue generating product Fire tube boilers, 2,200,000 average price per unit = 2,300 Ton Products not currently produced but will be in future in free market NASCO have capability to manufacture different types of heavy industrial equipment to high international standards and specifications. R&D together with sales and marketing will study customers requirement in industry. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Ministry of Defence 5500000 Oil Ministry 1500000 Commission of Electricity 1.200,000 Other MIM SOEs Unit Pricing Description: 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Yapa Turkish Company US $ 934,000 Al Mishrak, Iraqi Company US $ 700,000 Al Basira, Iraqi Company US $ 500,000 Current Payment Terms From Suppliers Payments are after the recipt of materials in the stores. 7. Imports & Exports 2002 Import Markets for Raw Materials Potential Import Markets in Free Market 2002 Export Markets for Finished Products None Potential Export Markets in Free Market Export to Arab and Middle Eastern countries : pressure vessels, Heat exchangers, Towers . NASCO can supply good quality products on a competitive prices. 8. Competition Description of Competitive Situation There are 3 major competitors: Al Faris State Company, Ibn Mageed State Company, Al Radwan State Company. Market Share Description For the top 3 products market share was estimated to be 40% of Iraq's demands. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage The company buildings and factories were not bombed during war. Damages occurred after occupation, all the instruments and computerised systems were destroyed. Computerised equipment and instruments were destroyed, considered to be for military use. Current Operating Status Currently the company is operating with 25% of total capacity. Re-installation of all machinery to be completed by end of August. Immediate Property & Equipment Needs To Restart Operations Buildings are in good condition. Most of the equipment in the factory shops need to restart operation. 14 of them are damaged including 5 CNC machines. The damages occurred in the cntrol system of the machines and their instrumentations. $2M USD needed immediately. Total Cost to Return to Pre-War Condition The damage cost is estimated to be in the region of: $15M USD 10. Inventory Status Raw Material Status Raw materials available: Plates, Pipes and fittings, Tubes, Welding Consumables, Miscellaneous. Estimated value: 3,923,000 ID. Immediate Raw Material Needs There are raw materials enough for six months. Finished Products Supply (Units and Value) 11. Fuel & Electricity Needs Description of Fuel Needs Gas, Petrol, Oil. Description of Electricity Needs 2.5 MW - 3.0 MW. 12. Other Needs to Restart Working Capital Needs 7,700,000 USD (If the company managed to sell the boats and some other products this amount will be reduced. Security Needs Security is already arranged (needs training, registration, clothing and weapons) Other Needs Management claims that large quantites of their electronic components and computers which are vital for production have been damaged during the war. They are seeking compensation to repair the damaged equipment immediately. G Corliss informed them that this is unlikely. 13. Strengths, Weaknesses, Opportunities & Threats Description of Strengths Low cost, competitive price on most products (questionable moving forward - see note below on subsidies), short delivery, good quality to high standards, high skilled engineers, long and extensive experience and knowledge, flexibility in working. Description of Weaknesses Difficulties in dealing with foreign currency, lack of spare parts and raw materials, high overhead and low efficency (this runs counter to its claimed strengths - low cost was probably a result of MOU subsidies, not competitiveness) Description of Opportunities High demands for products for reconstruction and development projects in Iraq especially in oil, petro chemical, electricity and other industries. Description of Threats Competitor from outside and inside of Iraq. Some of Company's equipment is old. 14. Long Term Strategy Description of Strategy Strategy plan will be provided in August 2003 (based on current situation and knowledge of the market). Potential New Products The management believe that there are potential for new products, but it has to be studied before making any commitment. However, the company can manufacture any special or heavy component required provided that the design and specs exist. The company has no R&D or design departments. Potential Partnership Opportunities A Czech company has shown interest on joint venture. A Turkish company has also shown interest in joint venture. NASCO is ready to discuss partnership and joint venture with any company outside or inside Iraq.