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Expansion launched.

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| May 01, 2005 | COPYRIGHT 2005 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Gulf Construction)

In a bid to reduce production costs, increase profitability and enhance competitiveness both in the local and export markets Saudi Cement Company (SCC) has embarked on the fifth extension and upgrading/modernisation project at its Hofuf plant. According to a spokesman for SCC, the programme - which was decided upon following completion of feasibility studies - will help prepare the company to meet the challenges of the future when Saudi Arabia becomes a member of the WTO (World Trade Organisation), and help run the company's plants in accordance with the latest technologies of the cement industry

The project envisages the erection of a new production line of 10,000 tonnes per day of clinker capacity (3.3 millions tonnes per year) as well as upgrading of some of the existing facilities, particularly increasing the capacity of the existing Kiln No 6 from 3,500 to 4,000 tonnes of clinker per day or more

"This project will have a very positive effect on SCC's activities, both technically and financially, and will also provide the best practices in environmental controls," says the spokesman

The design for the fifth extension project has taken into consideration the latest technologies for dust collection that will lead to the highest standards in environmental protection and pollution control, he adds

The increased output will help meet the demand for cement in the Kingdom. Last year, the demand for cement increased by approximately 6.6 per cent, when compared to the figures for 2003. In terms of actual numbers, demand reached 24.2 million tonnes (of which 0.15 million tonnes were imported), compared to a total demand of 22.7 million tonnes for 2003

"Reciprocally, total production in Saudi Arabia reached to 22.5 million tonnes of clinker (equivalent to around 23.5 million tonnes of cement). This meant that the local cement companies have dipped into their clinker stocks to meet the increase in domestic demand and also their commitments to the neighbouring Gulf countries. The clinker closing stock for all national cement companies by the end of last year dropped by 1.4 million tonnes from its level as of 2003 end," says the spokesman

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