Displaying items by tag: Saudi Arabia

Saudi Arabia: The crowded cement sector in Saudi Arabia is experiencing tensions due to its varying market shares, according to Majed Al Osailan, vice chair of the National Cement Committee. He noted that despite initial slow demand, renewed spending on construction has led to a shift, with most companies now able to meet market needs. The cement sector saw its first merger between Qassim Cement and Hail Cement, according to Argaam news, with another planned between City Cement and Umm Al-Qura Cement. NCC chair Badr Johar said that demand for cement is expected to strengthen substantially from late September 2024 to February 2025.

Saudi Arabia: Eastern Province Cement Company raised its sales by 29% year-on-year to US$156m in the first half of 2024. Its net profit grew to US$34.1m, up by 20% year-on-year.

Saudi Arabia: Southern Province Cement's sales dropped to US$124m in the first half of 2024, down by 2.5% year-on-year. Nonetheless, the company grew its net profit by 36%, to US$24.5m.

Saudi Arabia: Yanbu Cement recorded an 8% rise in sales year-on-year to US$114m in the first half of 2024. Mubasher has reported that this resulted in a net profit of US$26.1m for the company, up by 14% from its first-half 2023 result.

Saudi Arabia: Al Jouf Cement Company's board has overruled its previous recommendation to increase the company’s capital in order to settle financial obligations. Mist News has reported that the board based its latest decision on its successful rescheduling of loans with Alinma Bank and SAB, increased sales and the success of cost reduction initiatives.

Al Jouf Cement Company additionally filed a complaint with the Saudi Arabian Capital Market Authority against three former board members. The company’s accusations against the former board members include that they allegedly forged the vice chair’s signature, made investments for purposes not designated by the company’s articles of association, lost investments worth US$36.3m, failed to obtain approval for transactions with related parties and misled the company and its shareholders about investments and losses.

Saudi Arabia: Al Jouf Cement has entered an agreement with Italy-based Webuild to supply cement worth US$27.7m for various projects in the upcoming NEOM city. The contract spans 41 months from signing, with potential for increased quantities. Al Jouf Cement anticipates a profitable impact on its financial statements from the third quarter of 2024 until the contract's conclusion.

Saudi Arabia: Al Qura Cement has appointed Abdullah Abdulaziz Suleiman Alabdulatif as its chair. Saud Mahamed Ali Al Sabhan has been appointed as the Vice Chair. Both positions started in early July 2024 and will last until early July 2027.

Saudi Arabia: Southern Province Cement and Yanbu Cement have signed a non-binding memorandum of understanding to evaluate a potential merger. The due diligence process will assess various aspects including operational, technical, financial, legal and actuarial factors, according to Mubasher.

The memorandum was signed on 23 June 2024 and is set to expire in 12 months unless a merger agreement is reached beforehand. The feasibility of the merger will depend on agreement on final terms, regulatory approvals and endorsements from both companies' general assemblies.

Saudi Arabia: Qassim Cement Company (QCC) has successfully completed the acquisition of Hail Cement Company (HCC) for US$378m. The transaction, initially announced on 25 September 2022, involved increasing QCC's capital to facilitate the acquisition of all HCC shares. The acquisition follows a binding implementation agreement reported by HCC on the Saudi Exchange.

Saudi Arabia: Hoffmann Green Cement Technologies has initiated construction of H-KSA 1, its first production unit in Saudi Arabia, located at Rabigh. The foundation stone was laid following a licensing agreement with Shurfah Group, which includes building four Hoffmann units under an exclusive 22-year deal. These units will use Hoffmann's clinker-free cement, aligning with Saudi Arabia's Vision 2030 objectives. Completion is anticipated by end of 2025.

Co-founders Julien Blanchard and David Hoffmann said "We are delighted to participate in the decarbonisation of the Saudi construction sector by building several of our units on their territory and marketing our 0% cement clinker."