Zoujaj Glass

Leading the circular economy

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.

Saudi Arabia is rapidly expanding its manufacturing industry with the goal of increasing the number of its factories to 36,000 by 2035. To this end, spending on the sector has grown steadily to amount to more than $132 billion since Saudi Arabia launched its Vision 2030 blueprint in 2016. To meet the nation’s ambitious targets, local glass manufacturer The National Company for Glass Industries (Zoujaj Glass) has doubled its efforts to maximize the Kingdom’s production capacities, increase localization and lean into the initiative’s focus on sustainability. In Q1 2024, the company quarterly profits witnessed a huge growth from $2.29 million to $6.11 million due to full scale operations of its core glass bottle business and Joint venture companies’ activities. “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,” said Walid Afyouni, CEO of Zoujaj Glass.

The enterprise was established in 1990 in Saudi Arabia and one of the Gulf Cooperation Council regions first glass bottle manufacturing undertaking. Under a partnership with US-based multinational glass producer Guardian Glass, the company constructed its first float glass manufacturing facility in Jubail that began producing in 1997 with an original production capacity of 131,000 metric tons per year. Due to the success of its first plant and to meet regional demand, Zoujaj Glass constructed a second facility with its partner and production in 2007 located in Ras al Khaimah, United Arab Emirates, with a production capacity of 190,000 metric tons per year. In 2017, Zoujaj Glass upped its shares in its Saudi Arabian and Emirati joint venture subsidiaries Saudi Guardian International Float Glass Company and Guardian Zoujaj International Float Glass respectively by 10% each, raising each of its stakes to 55%. Currently the company produces mainly glass bottles that range from 88 milliliters to 1.25 liters, with the ability to produce from its Joint venture companies, various products such as float glass, pattern glass, coated glass and mirrors by sourcing local materials like sand, Limestone etc.

Afyouni has been crucial in transforming the company from having a penny stock to becoming an up-and-coming market leader. “When I joined in 2023, we restructured the company. We brought in new professionals in different areas of the business,” he said. “We have reduced our waste and improved our efficiencies, which has resulted in a large upswing in profits.” In the same year as he stepped up as CEO, the board of directors approved construction of a sixth line to produce glass bottles at its Riyadh facility. The project’s $12.4-million revamp is expected to raise production to around 150,000 metric tons per year and prompt a substantial increase in annual earnings when it becomes operational in December 2024. The company is also installing a high-speed decorating machine to cater to clients producing carbonated drinks and exploring the manufacturing of glass jars for food products such as Cheese, Pickles etc... “Our state-of-the art production lines are constantly being upgraded and maintained at the highest levels of quality and can produce any customized bottle designs requested by our clients,” said Afyouni.

A lynchpin in Zoujaj Glass’ recent rise in profits is the rapid movement in Saudi Arabia and the region towards the use of more sustainable products. “As we move away from plastic products as a culture, glass packaging is associated with premium beverages and food products,” said Afyouni. “Glass packaging is a healthier alternative and is much more environmentally friendly.” The company has also incorporated a high degree of green practices in its operations with the intention of reducing carbon emissions, plastic usage and waste. “Our container plant in Riyadh is the only plant running on gas and electricity instead of fuel, which reflects our focus on sustainability,” he said. Zoujaj Glass recently signed a memorandum of understanding with local circular economy entity Saudi Investment Recycling Company to create a new leading-edge recycling plant. “Innovation and sustainability have always been central to Zoujaj Glass' practices and development,” said Afyouni. “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.”