Ibrahim Al-Hashidi, GM of the Red Sea Company for Detergents to YT: “The main reason for not building big economic installations is the lack of facilities and cooperation on part of the State” [Archives:2000/32/Business & Economy]

archive
August 7 2000

There are many companies in Yemen that participate in strengthening the country’s economy by providing daily commodities instead of having Yemenis import them from abroad.
With pride, we can say that despite the difficult circumstances of Yemen’s economy, there are still many products manufactured internally, resulting in self sufficiency in some goods. However, the number of such companies should rise, as we are in an everlasting competition of providing better products for lower prices, and hence compete in regional markets.
Among these companies is of course, the Red Sea Company for Detergents, based in Taiz. Apart from its importance in providing detergent products for Yemenis, it is worth noting the good example the company resembles in being an environment friendly company despite its sophisticated procedures and operations operated on tens of dangerous chemicals.
As an appreciation for their role of maintaining a good record in protecting the environment around it, Imad Al-Saqqaf, Yemen Times Taiz Bureau Chief correspondent visited the Red Sea Company for Detergents and interviewed its General Manager Ibrahim Al-Hashidi with whom he had discussed many issues in relation to his company, environmental pollution, smuggling, foreign competition, possible prospects of emerging industries in Yemen, plus other issues.
Mr. Al-Hashidi expressed his delight to have the interview in which he explained that one of the main sources, harmful to environment, is industrial pollutants. This could partially be attributed to our society’s poor awareness of harmful elements against environment and requirements of its protection.
Here are some excerpts from the interview.
Q: Could you give us a brief idea about your company?
A: Red Sea Detergents Co. Ltd. was established in Yemen on November 29, 1984 and its first production began in June 1987. The company’s production capacity is 4 metric tons per hour, built on a total area of 94105 square meters while the factory’s area is 20374 square meters. The company recruits 414 employees. It covers the local market demand of its products and exports them to neighboring countries markets.
Q: It is said that soap wastes have caused a large-scale pollution and also damaged agricultural lands.
A: Of course, industrial wastes should be expected from any factory, workshop or productive source; but some companies or factories adopt a modern system for getting rid of their wastes. Some recycle these wastes. We have a very big pit in an isolated area away from any agricultural land where we dump our wastes and burn them.
Q: Local markets are dumped with foreign goods, either through imports or smuggling, what is your comment on smuggling?
A: Smuggling destroys the state economy, creates overall negative impact and may cause severe environmental effects if not controlled.
In previous years the markets were open completely for promoting local products; smuggling was quite limited. During 1998-99 smuggling became a big phenomenon and constituted 70% of domestic product. It is now known that Yemen imports everything from abroad and basically we depend of imported goods.
Explaining the reasons behind smuggling, he complained of absence of regulations and laws restricting the sale of foreign goods. Added to that are the leniency and absence of security watch on the borders and ports. Leniency led smugglers go scot- free through bribes. Simply pay a simple amount to the official and your smuggled goods are in the market. These include harmful commodities that damage our environment and peoples’ health.
Individuals and big countries are behind smuggling which is sometimes as dangerous as a war. They follow the dumping policy as a sole target. Flooding the country’s markets with smuggled goods is aimed at undermining the country’s economy, destroying its economic infrastructure, and cause great harm to the environment. Hundreds of factories and companies have closed down and thousands of workers lost their jobs because of this phenomenon.
The State’s stands handfolded versus this problem. The state should find a solution to curb smuggling operations and appoint honest people to run the vitally important facilities of the country such as the ports.
Q: Local industry is mainly confined to manufacturing detergents and sweets? Why don’t you think of introducing other items useful to our citizens and the homeland. How do you foresee the future of industry in Yemen?
A: Perhaps the main reason for not building big economic installations is the lack of facilities and cooperation on part of the State. Heavy and unimaginable customs and taxes blocks any such investment. Hundreds of Yemeni businessmen invest abroad and that is because they get facilities.
Q: Some companies, such as the Hayel Saeed Group of companies, support sport, culture and building charitable projects, what is your role in this field?
A: We do carry out charitable works and let the people speak about them. Our contribution to the society is in this form of service. We are all working hard on attaining an excellent level of quality products, and at the same time maintaining a balance not to affect the environment around us.

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