Saudi Cement’s Hofuf kilns to remain closed

According to local reports, Saudi Cement Company will keep two kilns at its Hofuf plant, located in the Al-Ahsa Oasis in Saudi Arabia’s Eastern Province, closed following refurbishment work due to weak demand and high inventory levels. Saudi Cement has suffered from sluggish domestic demand throughout this year, recording a decline in y/y profit in both 1Q14 and 2Q14.

A statement released by the company noted that, up until August, its sales had fallen by around 14% y/y as a result of increased production volumes from Saudi cement manufacturers and sluggish demand. “The feasibility of operating these two kilns shall be reconsidered whenever market conditions warrant that,” the statement continued.

Edited from various sources by Rosalie Starling

Sources

• Gulf Business
• Zawya

Read the article online at: https://www.worldcement.com/africa-middle-east/22092014/saudi-cements-hofuf-kilns-to-remain-closed-527/