Displaying items by tag: Saudi Arabia
Saudi Arabia: Tabuk Cement says it has obtained an export license from the Ministry of Commerce and Investment. The licence will be valid for one year, according to Mubasher. Sales volumes of cement fell by 25% year-on-year to 4Mt in February 2017.
Saudi Arabia: Mubasher has reported that cement-making companies in Saudi Arabia witnessed a near 35% decrease in sales in February 2017. The cement companies sold 4.1Mt of cement in February 2017, down from 5.4Mt for the year-ago period. The companies' production also decreased by 26% in February 2017 to 4.0Mt, compared to 5.5Mt in the same month of 2016.
The country's cement inventory increased to 1.07Mt in February 2017, up by 18.2% year-on-year from 906,000t. Yanbu Cement topped cement sales in February 2017, as it registered sales of 474,000t, with a drop of 21.26% year-on-year from 602,000t.
Saudi Arabia: Najran Cement has temporarily shut down its second production line due to poor market conditions and high inventory. The line has a clinker production capacity of 3000t/day. The cement producer intends to announce any financial impact arising from the shutdown in its financial report for the first quarter of 2017.
Saudi Arabia: Tabuk Cement has appointed Saeed Bin Saeed Obaid as its new chairman. He succeeds Khalid Bin Saleh Al-Shathry.
Saudi Arabia: Yamama Cement has temporarily shut down five of its production lines. The lines have a joint clinker production capacity of 5600t/day. The decision was made due to poor market conditions, low demand for cement and high inventory.
Saudi Arabia: Najran Cement’s net profit has fallen by 51.2% year-on-year to US$33m in 2016 from US$68.1m in 2015. Its revenue fell by 35% to US$1.89bn from US$2.9bn. It blamed the fall in earnings on lower sales volumes due to low cement demand. It said this was caused by a slowdown of construction activities, an increase in energy prices and finance expenses.
Saudi Arabia: Cement producers are planning to cut their production by 5 – 10% in 2017 due to a fall in demand. The decision follows declines in profits of around 17% by local companies in 2016, according to the Al Sharq Al Awsat newspaper. The decrease in demand for cement has been blamed on competition, high production costs and high energy costs. Cement sales in the country started to decline in 2015 following the low international price of oil.
Saudi Arabia: Yamama Saudi Cement has ordered two sets of clinker conveying equipment from Aumund. The Saudi Arabian cement producer plans to start-up two clinker production lines in 2018 at a new site to the southwest of Riyadh. The two lines, with a combined capacity of 20,000t/day, are being built by ThyssenKrupp Industrial Solutions.
The scope of supply includes 29 chain bucket elevators and 18 belt bucket elevators, in heavy-duty and lighter designs, for these two lines. For raw meal, Aumund belt bucket elevators will be used. Filter dust will be conveyed by Aumund chain bucket elevators optimally designed for low capacity. Two Aumund double chain bucket elevators with a capacity of 2300t/hr have been ordered per line as recirculating bucket elevators in the cement mill. The supply package for the two lines also includes six Aumund pan conveyors as well as various flat gates, silo discharge gates, telescopic chutes and cleaning conveyors.
Saudi Arabia: Yamama Cement has signed two finance agreements to raise US$267m towards building a new cement plant. It has signed a deal to raise US$200m from the National Commercial Bank and US$67m from the Samba Financial Group. The deals are both for three years.
Saudi Arabia: New legislation requiring cement exporters to pay tariffs of up to US$35/t is expected to reduce profits. The new import tax is also expected to compound problems for exporters created by restrictions linked to the gradual lifting of a ban on exports, according to Mubasher financial website. Cement producers are expected to be encouraged to focus on domestic sales instead. Financial analyst Jasim Al-Joubran of Al-Jazirah Capital has forecast low profits for the industry in 2016 due to low government spending. However, he added that sales are expected to recover in the fourth quarter of 2016 followed by a recovery in 2018.