Najran Cement shuts cement production line

The company’s management ordered production to stop on the 3000 tpd capacity line on 1 March. It follows a sustained period of reduced demand in Saudi Arabia, which has led to a rise in the company stocks of clinker.

Saudi cement companies have seen their revenues fall recently on the back of a sustained fall in construction activity in the country. As a result, a number of companies – including Najran – have secured licenses to export cement.

Saudi Arabia allowed cement exports again only last April, after banning them in 2008 in a bid to reduce prices at a time when construction activity in the country was high on the back of large government-funded infrastructure projects.

Najran is not the only Saudi cement company to reduce production. In January, Yamama Cement suspended operations on a number of its clinker production lines in response to the softening demand.

The Riyadh-based cement producer shutdown five production lines, reducing its clinker production capacity by 5600 tpd. According to cement industry analysts, IA Cement, Saudi demand will continue to be challenged, falling 4 – 5% in 2017.

Read the article online at: https://www.worldcement.com/africa-middle-east/08032017/najran-cement-shuts-cement-production-line/