MANAMA: The Board of Directors of ASRY (Arab Shipbuilding & Repair Yard Company approved on Thursday, 28 March 2013, at a meeting held under the Chairmanship of His Excellency Shaikh Daij bin Salman Al-Khalifa, Chairman of the Board, a strategic plan for the period 2013 – 2017. The Board also approved a new Bonus System for the employees. The Board also reviewed the final accounts for 2012 and discussed several topics related to various aspects of business within the Company’s facilities.

In a statement made by His Excellency the Chairman, he said that the meeting was attended by the representatives of all the shareholding countries – the United Arab Emirates, the Kingdom of Saudi Arabia, the State of Kuwait, the State of Qatar, the Republic of Iraq, the State of Libya, in addition to the Kingdom of Bahrain. The financial results of the first two months of the current year were also approved. It was noted that sales during January and February 2013 reached $35.8m against $24.6m for the same period of last year. The number of vessels which were repaired in the Company’s dry docks during January and February 2013 were 37, against 38 during the same period of last year.

Shaikh Daij pointed out that such results were positive indication that the ship repair market is bouncing back. He predicted that the volume of sales would further increase by the end of the year, with the good progress being witnessed by the dock.

The Chairman and Board Members appreciated the excellent efforts put in by all the employees of ASRY and their commitment and dedication, which enabled the Company to achieve such excellent results. He added that it is especially encouraging that such results have been achieved after a critical period of time suffered by the ship repairing industry as a result of the global financial crisis that started at the end of 2008.

Shaikh Daij said that the Board of Directors had approved the new Bonus System which would replace the previous system. “This is part of ASRY’s endeavours to improve benefits offered to employees and, of course, the bonus payment will depend on the amount of profits realized and will be granted to employees subject to the annual performance appraisal of each employee.”

Shaikh Daij disclosed that the strategic plan includes a number of projects intended to enhance the capability of ASRY to compete regionally. He said that the construction of a medium sized dry dock, the fourth within ASRY, would be an important project within the forthcoming 5-year plan. He added that this development was designed to meet the expectations of current customers and to attract new owners of medium-sized ships.

He explained that the plan would include programs to improve the loyalty of customers and to maintain the high standards of performance by Company employees through the development of their skills to ensure a high quality service to its customers. His Excellency added that development of the Consultancy Division of the Company was a priority within the strategic plan so that it becomes a main database for the ship repair industry. “This will coincide with the development of the capacity of the production engineering sector in the various facilities of ASRY in a way that will meet the expectations of the shareholders”, he pointed out.

The Chairman explained that the strategic plan would emphasize the Bahrainization of various jobs through appropriate human resources policies and recruitment programmes. He said that the training programs and recruitment would continue in cooperation with TAMKEEN and the National Institute of Technology.

Shaikh Daij also disclosed that the Board has decided to restructure the Company and to continue diversifying the sources of income by seizing ship repair related investment opportunities available. “ASRY is in the process of incorporating a subsidiary in Saudi Arabia for such available opportunities in the areas of offshore and ship repair services”, he said.

The Chairman said that the Board has decided to establish an internal committee for expense control. The committee will consider all areas where ASRY can cut costs, aiming at reducing direct and indirect Company expenses without compromising on the high quality of service provided to the Company’s customers.

With regard to the 2012 financial results, His Excellency Shaikh Daij explained that the Board had noted that Company repaired a total of 185 vessels and achieved total sales of US$ 177.1 million in 2012 marginally more than the total sales of US$ 166.9 million achieved in 2011. The Board of Directors will make a recommendation to the next General meeting requesting their approval of the financial results for 2012.

The Chairman said that the Board had viewed and discussed several matters related to management, marketing, business development and insurance of Company assets. The Board was also briefed on the status of the power generating barges project under which the Company has completed the construction of the hull of the first power generating barge.

His Excellency Shaikh Daij expressed his thanks to the shareholders, the Directors, members of management and to the Company employees for their efforts that have that have helped the company to achieve the record profits and excellent accomplishments in spite of the tough and growing competition from other yards in the region. He praised the strong relations that exist between the shareholding countries, which have set a successful model for joint Arab cooperation.