Eastern Cement awards $270.53M contract to establish new production line

Eastern Province Cement Co.'s stated that its board of directors approved on Jan. 4 awarding China's Sinoma CDI a $270.53 million (SAR 1.01 billion) contract to establish a new production line with a capacity of 10,000 tons per day, according to a Tadawul statement.

The project will be implemented under a turnkey contract for engineering, supply, construction, installation, commissioning, testing, and operation, as well as training of operation and maintenance staff, until the start of commercial operation at the company's existing plant in the Khursaniyah area.

The line will be built in accordance with the latest technology in the field of the cement industry, the statement added.

It is expected that the contract will be signed within two months from the date of the award, the company said, adding that the project financing arrangement will be announced later.

There are no related parties included in the contract.

In March 2023, Eastern Province Cement's board of directors decided to invite specialist companies to submit offers to establish a new production line to replace some of the obsolete lines at the current plant at Khursaniyah, to maximize the benefits from the infrastructure of the current plant, according to data available with Argaam.