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Najran Cement shuts cement production line

Published by
World Cement,


Tough cement market conditions in Saudi Arabia has forced Najran Cement Co. to suspended operations on its second cement production line, according to a company release to the Saudi Stock Exchange.

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/

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