Displaying items by tag: Saudi Arabia

Saudi Arabia: Al-Jouf Cement has appointed Eisa bin Yeslam Ba-Eisa as its chair. He succeeds Ahmed bin Mohammed Al-Faleh in the position.

Yeslam Ba-Eisa holds over 25 years of professional experience in the telecommunications, industrial, and corporate governance sectors. He is currently working as the chair of GO Telecom. He has also worked as the CEO of several companies in the cement and energy sectors. He is a member of the National Committee for Cement and the Arab Union for Cement and Building Materials.

He holds a PhD in business administration from Atlanta University, Georgia, and master's and bachelor's degrees in business administration and mining engineering from King Abdulaziz University. He is also professionally accredited as a Certified Management Consultant by the Ministry of Commerce and as an Engineering Consultant by the Saudi Council of Engineers.

Saudi Arabia: Al-Jouf Cement has signed a one-year, US$10m sales agreement with Towa Development to export cement to Syria and Palestine. The contract, effective from 30 November 2025 to 29 November 2026, reportedly represents over 14% of the producer’s total revenue based on its latest audited results. The company will supply all types of cement to Towa Development for export throughout the contract period.

Saudi Arabia: Al Jouf Cement recorded a net loss of US$17m in the first nine months of 2025, marking a 130% increase from US$7.4m in the same period of 2024. Revenues for the period rose by 6% to US$51.3m, up from US$48.4m a year earlier, according to the company’s financial statements.

In the third quarter of 2025, the company’s net loss widened by 112% year-on-year to US$6.7m, compared to US$3.2m in the third quarter of 2024. Quarterly revenues fell by 6% to US$14.5m from US$15.4m in the same period of 2024. Compared to the second quarter of 2025, net losses increased by 7%, while revenues declined by 21% from US$18.5m to US$14.6m.

Saudi Arabia: Cement sales rose by 7% year-on-year and 8% month-on-month to reach 5.24Mt in October 2025, the highest monthly figure since March 2021, according to a research note from Al Rajhi Capital.

All producers recorded month-on-month volume growth except Yamama Cement, which nevertheless strengthened its market leadership with a 15% share, up from 12% in the 2024 financial year. Saudi Cement followed with a 13% share, compared to 12.5% the previous year. Regionally, the Eastern Province led growth with a 17% year-on-year increase in sales, followed by the Central Region at 16%. The Northern, Western and Southern regions saw declines of 3%, 2% and 0.8%, respectively. Clinker inventories stood at 44.1Mt at the end of October 2025, down by 0.2% month-on-month.

Pakistan: Pioneer Cement has appointed Ch Tasneem Anwar as Deputy General Manager (Production). He has worked in production roles at the cement producer since 2017. Prior to this was the Section Head (Production) at City Cement in Saudi Arabia. He launched his career working for Pioneer Cement in 2006. Anwar holds a bachelor’s degree in chemical engineering from the University of Engineering and Technology in Lahore.

Saudi Arabia: City Cement recorded a 6% year-on-year fall in net profit to US$25.8m in the first nine months of 2025, down from US$27.5m in 2024. This was despite a 7% rise in revenues to US$103m from US$96.5m.

In the third quarter of 2025, the company’s net profit dropped by 74% year-on-year to US$2.3m from US$9m, while revenues fell by 26% to US$25.8m from US$34.8m. Quarter-on-quarter, profit declined by 76% from US$9.7m in the second quarter of 2025, with revenues down by 31% from US$37.3m.

Saudi Arabia: Southern Province Cement has appointed Abdulsalam Al-Duraibi as its CEO. He will start his tenure on 1 December 2025.

Al-Duraibi holds experience in the financial and industrial sectors, having held several leadership and executive positions, most recently as the CEO of Najran Cement. He has also worked on the board of directors and specialised committees of several companies. Al-Duraibi holds a master's degree in Business Administration from Seattle University in the US, a bachelor's degree in Information Systems Management from King Fahd University of Petroleum and Minerals, and is a chartered financial analyst.

Saudi Arabia: Northern Region Cement Company (NRCC) has announced the signing of a contract for the construction of a US$8.7m, 20MW solar power plant in Turaif City. The plant will be supplied by Sinoma Overseas Development. The company says that the contract is in line with Saudi Vision 2030 and the company’s strategy to increase the use of renewable energy. Construction will take place over 10 months, with operations expected to begin in late 2026.

Sinoma Overseas Development will carry out the full scope of engineering design, procurement, supply and delivery during the contract duration time, in addition to civil construction, installation and commissioning.

Renewables reportedly generated more power than coal in the first half of 2025. Energy think tank Ember put out a report this week, which showed that solar and wind generation also grew faster than the rise in electricity demand in the first half of 2025. Global electricity demand rose by 2.6% year-on-year, adding 369TW. Solar increased by 306TW and wind by 97TW. Both coal and gas generation fell slightly, although a rise in other fossil fuel generation slowed the decline further.

Tellingly, fossil fuel generation fell in both China and India. Indeed, China added more solar and wind than the rest of the world combined, cutting its fossil fuel generation by 2% or by 58.7TWh. In India, renewables grew at the expense of fossil fuels, but demand growth was relatively low at 12TWh. In the US and the European Union (EU) fossil fuel generation actually increased. In the US, this was due to demand growth outpacing new renewable power. In the EU, weaker wind and hydroelectric output led to a greater reliance on coal and gas.

Meanwhile, a separate report by the International Energy Agency (IEA), also out this week, predicts that installed renewable power is likely to more than double by 2030 even as the sector navigates headwinds in supply chains, grid integration and financing. The IEA forecasts that global renewable power capacity will increase by 4600GW by 2030, roughly the equivalent of adding the total power generation capacity of China, the EU and combined. Solar photovoltaic (PV) will account for around 80% of the global increase in renewable power capacity over the next five years, followed by wind, hydroelectric, bioenergy and geothermal. Solar PV is expected to dominate renewables’ growth between now and 2030, remaining the lowest-cost option for new generation in most countries. Wind power, despite its near-term challenges, is still set for considerable expansion as supply bottlenecks ease and projects move forward, notably in China, Europe and India. However, the IEA’s outlook for global renewable capacity growth has been revised downward slightly compared to 2024, mainly due to policy changes in the US and in China.

This is all very well but what does it mean for the cement sector? At face value, possibly not much anytime soon. Both Ember and the IEA are talking about domestic electricity generation, not industrial. Ember reckons that half the world’s economies may have already peaked in fossil fuel power generation, but usage rates are still high. Prices of fossil fuels may even subsequently come down - to the benefit of industrial users such as cement plants. Yet, carbon taxes should, in theory, discourage increased usage - if they are working correctly.

Market distortions should not be discounted though. Some readers may recall what happened with carbon credits in the earlier stages of the EU emissions trading scheme. Free carbon allowances, calculated during the boom years of 2005 - 2007 when production was maxed out, were far too much to cover production during the resulting economic crisis. The sale of extra allowances provided many plants with a nice little earner and did little to encourage decarbonisation. Carbon capture is likely to require large amounts of electricity, but cheaper energy from renewables may help.

However, take a look at renewable energy stories in the Global Cement website news so far in 2025 and there are nearly 30 solar-related and seven wind-related ones. Cement companies are busily adding renewable capacity to reduce the cost of their electricity. This week, for example, Equator Energy commissioned a 10MW captive solar power plant at Mombasa Cement’s Vipingo plant in Kenya. Last week, Southern Province Cement in Saudi Arabia signed a 25-year solar energy power purchase agreement for its Bisha cement plant. Lest one forget, Saudi Arabia was the largest exporter of crude oil among Organization of the Petroleum Exporting Countries (OPEC) members in 2023 at 6,659,000 barrels/day. If a cement plant in Saudi Arabia is investing in renewables, then one might suspect a change in the global energy mix is occurring.

Electricity accounts for around 12% of the energy demand at a cement plant. Nearly two-thirds of that demand comes from either grinding raw materials or cement. Then, as mentioned above, carbon capture is expected to increase the demand for electricity. One estimate reckons it will increase electricity consumption by 50 - 120%. Renewables are expected to bring down the price of electricity but demand will also grow.

So… expect more renewable projects linked to cement plants.

Saudi Arabia: Southern Province Cement has appointed Saud bin Safar Al-Bargan as its CEO.

Al-Bargan holds over 25 years of professional experience with 15 years in the cement and building materials sector. He joined Southern Province Cement in 2011. Notable roles he has held at the company include Director of Marketing and Sales, Director of Planning and Business Development, Director of Engineering Services, Director of Supply Chain Management, Executive Vice President of Operations and Operations, and secretary of the board of directors. He is a graduate in applied mechanical engineering from King Fahd University of Petroleum and Minerals.