Walid Afyouni

CEO of Zoujaj Glass

Pioneering glass powering progess

Walid Afyouni, CEO, National Company for Glass Industries (Zoujaj Glass), talks about the company’s successful transformation into a leader in glass manufacturing in the region alongside Saudi Arabia’s giant Vision 2030 program.

"Zoujaj Glass has consistently met shareholders’ expectations and paid dividends. Given the company’s current growth prospects, competitive positioning and financial health, we see robust potential in our stock and would label it as an excellent investment opportunity."

Walid Afyouni

    • Can you give our readers a brief history of the company and its ties with US-based glass producer Guardian Glass?

      Our collaboration with Guardian Industries began in 1994 with the first float glass project in the GCC, Guardian Zoujaj International Float Glass Company in Jubail. Works were completed in 1996 and commercial operations began in 2007 with the production of float and pattern glass with a capacity of 131,000 metric tons per year. We then continued towards more value-added projects like mirrors and coated glass. After the success of our first plant in Jubail, we wanted to expand to meet the growth of the construction business in the region. In 2007, we began commercial operation of our second float glass plant in Ras al Khaimah in the United Arab Emirates with a production capacity of 190,000 metric tons per year. This plant enabled us to cover a larger region. Its products include float glass, coated glass and mirrors. In 2017, Zoujaj Glass increased its stake in the two joint-venture companies from 45% to 55%.

      With regards to core Glass bottle business, normally our clients request their glass bottle designs, and our machines are equipped to produce glass bottles ranging from 88-milliliter to 1.25-liter bottles.
      When I joined in 2023, we restructured the company. We brought in new professionals in different areas of the business. This has made a huge difference to our level of quality and efficiency. We have reduced our waste and improved our efficiency, which has resulted in a large upswing in profits. We are now a promising company. In the past, 50% of our products were exported and 50% were used locally. However, we have found a huge need for glass containers in the local market, including covering major clients such as PepsiCo. We have also seen a huge market demand for smaller bottles, which has resulted in the expansion of our plant.  We are continuously investing in and updating the company’s assets. We aim to keep improving our machines to produce positive results and give comfort to our investors. We are on the right track and our forward momentum is now sustainable.

    • Due to the good business relationship between Zoujaj Glass and Guardian Glass, we have initiated a market study to construct a new float glass plant in Saudi Arabia to meet the increasing demand in the region. In 2023 our Jubail operations carried out some maintenance and development activities that will reflect in our 2024 performance and onwards. After installing our sixth line in the glass bottle sector, that is expected to be operational in December 2024, we anticipate our glass container margins will improve through an increase in sales volumes. We are gradually moving from normal glass packaging for juice products to value-added products like glass jars for food such as cheese and honeys. We have begun investing to meet the required quality standards and acquired necessary food and safety certifications. We are also installing a new high-speed decorating machine to cater to the growing market demand for carbonated soft drinks. Our state-of-the art production lines are constantly being upgraded and maintained at the highest levels of quality and can produce the glass bottle designs requested by our clients. We also develop glass bottle designs as per customer requirements.

    • The Vision 2030 initiative is creating tons of opportunities for both locals and foreigners. There are many projects coming up that everyone can benefit from, from construction to the agrifoods sector. Zoujaj Glass has consistently met shareholders’ expectations and paid dividends. Given the company’s current growth prospects, competitive positioning and financial health, we see robust potential growth in our stock and would label it as an excellent investment opportunity.

    • Innovation and sustainability have always been central to Zoujaj Glass' practices and development. Our commitment to sustainability has allowed us to supply a niche market such as companies like Almarai. Our container plant in Riyadh is the only plant running on gas and electricity instead of fuel, which reflects our focus on sustainability. Additionally, Zoujaj Glass has been coordinating with the Saudi Investment Recycling Company with aims to reduce carbon emissions, plastic usage and waste. We have signed a memorandum of understanding with them to develop a recycling plant. We have seen new technologies in places in Europe and may form some joint ventures in this regard. As we move away from plastic products as a culture, glass packaging is associated with premium beverages and food products. Glass packaging is a healthier alternative and is much more environmentally friendly. We focus on recycling glass products for a completely circular economy. We foresee glass packaging having the upper hand over alternate packaging methods; we see a huge untapped market for this product in the region.

    • Finding and retaining talent has a lot to do with public relations. I have been in the region for quite some time and have been very successful in picking the right people. We work with individuals and hiring companies to choose the right talent. So far, finding people has not been a challenge. However, keeping them for the long term is a long shot. To retain talent, it is crucial to provide them with an attractive package, comfort and the right environment. We are managing fine in this department as well.

    • The Vision 2030 program aims to diversify the economy and position the private sector as the engine of our economic growth. Our research indicates strong alignment between the public and private sectors in this direction, with figures from last year showing continuous growth in the non-oil sector. Overall, Saudi Arabian businesses embracing transparency and international business practices will foster trust, drive investment and promote sustainable growth. However, successful implementation will require commitment from both the private sector and government entities to create an ecosystem conducive to these practices. Ongoing monitoring and enforcement of regulations related to transparency will maintain our momentum and ensure long-term benefits for the Saudi Arabian economy.

      As Saudi Arabia enters the second phase of its Vision 2030 program; significant challenges remain in achieving its objectives. These include diversifying the economy away from oil, creating sustainable employment opportunities, maintaining investor confidence, reforming the public sector, scaling up infrastructure and promoting sustainability and environmentally conscious practices. Overcoming these challenges will require continued commitment, collaboration and adaptability from the government, private sector and society.