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Saudi Cement ... demand stagnant.

Saudi Cement keeps Hofuf kilns closed due to weak demand

RIYADH, September 23, 2014

Saudi Cement Company, the kingdom's largest listed cement producer by market value, said it would not restart after refurbishment work two kilns at its Hofuf factory due to high inventory levels and weak demand.

The company has been hurt by soft local demand for cement this year, reporting falling year-on-year profit in the previous two quarters.

Up to August, its sales had dropped 14 per cent year-on-year because of increased volumes being produced by Saudi cement firms and stagnant demand, it said in a statement.

"The feasibility of operating these two kilns shall be reconsidered whenever market conditions warrant that," the statement said.

The company expects to record annual depreciation charges of about SR7.6 million ($2 million) related to the kilns from the fourth quarter onwards.

Saudi Cement operates one more plant in the Ain Dar region in the east of the kingdom. - Reuters
 




Tags: demand | Saudi Cement |

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