Displaying items by tag: Saudi Arabia

Saudi Arabia: King Abdullah bin Abdulaziz Al Saud has issued an urgent command ordering 10Mt of cement to cope with a local shortage. Additional measures included plans to build three to four new cement plants with a production capacity of 12Mt/yr. US$800m has been approved to support the program for three years.

The Saudi Press Agency announced the urgent directive to address a growing demand for cement in light of rapid urban growth and government infrastructure projects.

Saudi Arabia: Since 20 March 2013 the Northern Region Cement Company (NRCC) has been forced to halt production, due to the closure of a road leading to the plant. This has blocked trucks entering the plant for cement collection and has meant that the plant has now been forced to halt production.

The decision to close the road leading to the plant was taken by a committee drawn up from representatives from the Governorate of Northern Border, the Ministry of Transportation and the Department of the Police in the area, following NRCC's 'failure' to construct an upper bridge road connecting the plant with a nearby international highway.

NRCC was required to construct the bridge road by the authorities in order to safeguard the lives of the people driving in the area. However, an NRCC official said that it cannot be constructed as it would cost US$4.8m, an amount that requires approval through a meeting of the company's general assembly. Additionally, the official called for the formation of a committee to inspect the roads around the plant as he believes that the present road layout poses no danger to road users. He added that the local market would start to feel the effects of the plant shutdown 'very soon.'

Saudi Arabia: Tabuk Cement Company has registered an increase in net profit to US$50.4m in 2012, up from US$36.5m in 2011. This represents a year-on-year increase of 38%. Tabuk Cement attributed the rise to higher sales prices coupled with increased production efficiency.

Saudi Arabia: Hail Cement has announced a net loss of US$7.1m, the third consecutive year with a net loss, although it reduced its loss from US$10.9m in 2011. Hail reported a 29.5% drop in revenue to US$391,635 and negative operating cash-flow.

UAE: Ras Al Khaimah Cement made a net loss of US$2.0m during the whole of 2012 despite a 15.1% increase in its revenue to US$60.5m. 2012 was the third year in five that the company made a loss. In 2011 the company made a net loss of US$5.4m.

Saudi Arabia: Arabian Cement has said its chief executive, Ali Al Khuraimi, has resigned for personal reasons. A new CEO will be appointed as soon as possible, the cement maker said in a statement posted on 2 February 2013 on the Saudi bourse website.

Saudi Arabia: Southern Province Cement Company has announced the start of commissioning of its third mill at its Jazan plant, which started on 27 January 2013. It is expected that commissioning will be completed by 15 March 2013.

Saudi Arabia: Saudi Cement Co has reported a 31.4% rise in its fourth quarter profit due to higher local demand, the company reported in a bourse statement. The cement producer made a net profit of US$74m in the fourth quarter of 2012 compared to US$56.4m in the same period in 2011. Its operating profit rose by 36.8% to US$80.2m from US$58.7m.

Saudi Arabia: Two of Saudi Arabia's largest cement producers, Yamama and Yanbu, have reported a growth in their profits in 2012.

Yanbu Cement announced a net profit of US$192m for 2012, an increase of 36.1% compared to 2011. The company said that such a performance had been made possible as a result of improved sales and the opening of a fifth production line part way through the year. The company also saw a 32.7% year-on-year increase in its fourth quarter sales to US$54.1m.

Yamama Cement revealed that its full-year net profits for 2012 increased by 11% to US$218m. However in the fourth quarter of the year its profits fell by 9% year-on-year to US$46.4m. The company blamed the lower sale prices achieved during the fourth quarter before the decline was reached.

A recent report by the National Commercial Bank (NCB) said that demand for cement in Saudi Arabia remains strong, with ongoing projects set to sustain growth for several years to come. It forecasted growth in market demand with a rate of 8.2% predicted in 2013 as demand reaches 56Mt. In the longer term NCB predictions expect continued demand growth of 6.3%/yr until 2015.

Yanbu is likely to benefit from any significant growth in demand, as it has three lines with a combined capacity of 1.3Mt/yr currently sitting idle. Predictions that this growth in demand will be disproportionately stronger in the western region could well yield another successful year to come in 2013.

Saudi Arabia: Saudi Cement Company (SCC) has announced that its net profit for the six months to 30 June 2012 surged by 45% year-on-year, to US$164m from US$113m in the same period of 2011. The company attributed the increase to rising local demand. SCC's operating profit increased to US$166m for the first half of 2012 from US$118m in 2011.

Saudi Arabia: Box International Consulting LP, a US-based cement industry consulting firm, has been issued with a Grant of Authorisation by Al Jouf Cement Company in Saudi Arabia to provide a variety of services to Al Jouf's plant in Turaif.

"Box International is very pleased to work with Al Jouf Cement regarding its plant expansion and to support its vision of furthering the construction sector and cement market in Saudi Arabia," said Thomas D Box, president of Box International.

Box International will assist Al Jouf Cement in developing a third line at the plant with an intended capacity of 5000t/day. This will involve providing consultation and recommendations regarding plant layout and design, process upgrades, equipment, plant and facility specifications and recommendations of vendors, along with the considerations regarding integration of the plant and infrastructure.

Box International will also manage the proposal and bidding process, propose training programmes for staff, manage financing for the expansion and propose an operation and management plan for the completed plant. Currently Al Jouf Cement's plant has one line with a capacity of 5000t/day with a second line under construction with the same capacity.