Al Qadisya

# 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 Qadisya State Company for Electrical Industries Sector Engineering Brief Description The company was established in 1977 and it has always ben state owned. Manufacturing electrical power transformers, distribution transformers, electrical meters (single & three phases), iron machine, celling fans and other minor products. Critical to electicity infrastructure and oil industry in Iraq. Recently began producing fiber optic cable for Ministry of Communications. Minimal war damage to facilities. The site is built on 25 Sq Km land owned by the company. Revenue in 2002 (Iraqi Dinars '000s) 17460000 # of Employees 2261 Annual Employee Salaries & Bonus 3742732 Headquarters Address Oxala Coverner Baqouba 2. Company Highlights Minimal damage to property and equipment. Stable power supply and working capital are only needs to restart operations. One Issue: All raw materials are imported. Without subsidies ($12M USD in MOU’s on 25B ID in revenue), Company may not be competitive. Company first estimated $9M USD needed for raw materials and salaries to restart operations, then changed to $2M, then $3M. Allocated $2.6M USD for 2H 2003 operating budget and provided with 3mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Main Factory Diyala Baqouba MC6669237060 0 3 mw Has 8 facilities in total, but no data available Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items Current value of 11B ID. 1.56B ID initially spent on machines and equipment when Dinar was worth more (up to $3 per ID) 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Power Transformers mva 3000 1804 1025 60% of total for all transformers Distribution Transformers mva 3400 2700 1840 Electrical Meters Units 270000 111000 60000 25% of total Steam Irons for Consumers Units 180000 120000 47850 Spark Plugs for Cars Units 15000000 4000000 1885000 Ceiling Fans Units 500000 150000 56650 Fiber Optic Cable km of fiber 50000 0 0 Argon Gas m^3 75000 117320 Description of Importance of Products to Other Iraqi Industries Warranty on products. Warranty is provided on products for 6 months 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Ministry of Electricity 70% of total Ministry of Oil 20% of total Private Companies and Consumers 10% of total 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Alshaheed Co - Iraqi Ur Co - Iraqi Various Private Sector Cos - Iraqi Proctes - France Insulating paper Sada Al Ramian - Iraqi Powder coating for fans and other metals Mechatool - Cyprus Spare parts Mustafash - Iraqi Brass and rotary switches for fans Current Payment Terms From Suppliers Payment is upon receipt if not paid in advance in case of MOU. 7. Imports & Exports 2002 Import Markets for Raw Materials All raw materials are imported, most from Europe. Potential Import Markets in Free Market 2002 Export Markets for Finished Products None since 1991 (when it used to export to Saudi Arabia). Potential Export Markets in Free Market Arab Countries and Middle East 8. Competition Description of Competitive Situation No competitors in Iraq. Imports competition exists. Market Share Description Distribution transformer 60%, Power transformer 35%. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage None Current Operating Status Currently the factories are not working. They claim to need operating capital and electricity to start working. Transformer plant supposedly has 3mw of power and 2 months of raw materials, so its unclear why they are not operating. Immediate Property & Equipment Needs To Restart Operations None Total Cost to Return to Pre-War Condition Claiming that they need 250,000 ID for spare parts repairs. Notes 1- Transformer manufacturing capabilities are acceptable, need investment in product development. 2- Fan design and manufacturing method are old, very difficult to find market for this product, it needs big investment to make changes in design and manufacturing including equipment. 3- Electric meters are old design (analogue meters), manufacturing cost is high in compare to digital meters. Analogue meters still have market in Iraq and in Middle East, product development is required to reduce cost. 4- Automatic and steam iron type and quality are acceptable, this product has good market in Iraq and could be made more competitive. 5- Argon and Oxygen factory is in a very god shape, it only needs 2.0 MW electric power supply to resume production. Oxygen and Argon has good market in Iraq, no raw material. 6- Fiber Optic manufacturing equipment are new and in excellent condition. Fiber optic production line was used only for experimental, needs training to improve production. Generally all the managers, staff and engineers need extensive training in their fields.