Eastern Cement inks $270.53M contract to build new production line

Eastern Province Cement Co. signed today, Feb. 29, a 26-month contract with China's Sinoma CDI to establish a new production line in the company’s plant in Khursaniyah at a value of SAR 270.53 million, the company said in a statement to Tadawul.

The new production line will operate with a production capacity of 10,000 tons of clinker per day, the company said.

The contract was signed on the basis of a complete turnkey contract for the design, supply, construction, and operation of a cement production line at the company’s current plant in the Khursaniyah area, in accordance with the latest technology in the field of the cement industry, said the company.

Eastern Cement expected the project to contribute to boosting the use of energy efficiency, which will reflect positively on production costs starting from the date of commercial operation.

CEO Fahad Al Otaibi said that the purpose of this project is to replace some low-efficiency production lines, which will contribute to achieving the Kingdom’s goals to raise the efficiency of energy use.

Furthermore, the project will maximize the benefit from the current plant’s infrastructure. It is an addition to the strategic growth process pursued by the company, which aims to grow and maximize returns to its shareholders, as well as meet local demand and diversify products in line with the Kingdom’s Vision 2030, he added.