Saudi Arabia: Najran Cement says that an anticipated increase in its production costs due to rising fuel prices has been mitigated by it signed an agreement with the Industrial Competitiveness Program. The program is intended to enhance operational efficiency, reduce production costs and improve the sustainability of industrial operations. Subsequently, it now forecasts that its production costs will rise by 8%. In January 2026 it warned that an increase in the price of fuels by its supplier Saudi Aramco would lead to a 13% rise in production costs.
The cement producer also confirmed that it is continuing to work on operational improvement and cost optimisation projects to further mitigate fuel costs. These measures are planned to reduce production costs by a further 3% and should start be reflected in the company's financial results for the second quarter of 2026.