Aslak eyes expanding into high-margin products in 2027: CEO

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United Wire Factories Co. (Aslak) is evaluating opportunities to expand into higher-margin products in 2027, based on expected demand and return on in ...

United Wire Factories Co. (Aslak) is evaluating opportunities to expand into higher-margin products in 2027, based on expected demand and return on investment, CEO Nabil Alamir said, adding that the company is assessing how best to utilize its existing production capacity before deciding whether to add new production lines.

Alamir told Argaam that Aslak targets operating at 80% to 90% of its production capacity throughout the year to help absorb fixed costs, although utilization rates vary quarterly depending on demand and product mix.

He said Q4 2026 performance will depend on order volumes, particularly from the construction sector, as well as raw material price movements and supply costs, adding that the company continues to enhance operational efficiency and profitability by securing raw material supplies, controlling costs, and aligning its product mix with demand, with the impact of these efforts expected to materialize gradually.

Regarding its financial results, Alamir noted that net profit increased year-on-year (YoY) in Q3 2026 despite lower sales volumes, mainly driven by an improvement in the gross profit margin to around 11.2% from 6.7%, alongside lower selling, general and administrative expenses during the year.

The company’s investments also supported its results, with A-1 Fence Arabia for Industry, in which Aslak holds a 30% stake, delivering strong performance during the year and contributing to net income through Aslak’s share of its profits, in line with the company’s strategy of acquiring stakes in businesses that enhance its profitability.

Alamir explained that demand and prices increased in Q2 amid supply chain disruptions caused by geopolitical developments in the region. However, price increases slowed toward the end of the quarter, while demand eased at the beginning of Q3 with the onset of the summer season.

Sales volumes declined quarter-on-quarter (QoQ), while the gross profit margin fell to around 11.2% from 13.3%.

Regarding sales, he said…

The…

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