Gama, Polysius sign up for cement project

11 July 2003
Eastern Province Cement Company (EPCC)signed two long-awaited contracts on 5 July for the SR 400 million ($107 million) project to install a new cement line at its Dammam plant. The contracts will come into force by the end of July, when bank guarantees have been arranged. EPCC is also evaluating two offers from international companies for the contract to act as the consultant on the expansion scheme (MEED 23:5:03).

Germany's Polysiussigned up for the contract to provide engineering services and supply the equipment for the new line. Only one other company, Japan's Ishikawajima-Harima Heavy Industries (IHI), was competing for the contract. The local/Turkish Gama al-Moushegehwill carry out the installation, commissioning and testing of the new line, which will have capacity to produce 3,500 tonnes a day (t/d) of cement. Project completion is due in 26 months. The Saudi Industrial Development Fund (SIDF) will provide 50 per cent of the required financing for the project, with the remainder being funded by EPCC itself.

EPCC is evaluating bids from two companies - Switzerland's PEGand the UK's WS Atkins International- for the contract to carry out consultancy services during the project's construction. Atkins also drew up the feasibility study for the project. EPCC in 2002 produced almost 2.5 million tonnes of cement.

Revised bids are due to be submitted by mid-July on another project, the expansion of a cement plant in the central city of Buraidah for Qassim Cement Company (QCC). Bidders for the turnkey installation of a 4,500-t/d cement and clinker line and crushing and packing facilities are a German team of KHD Humboldt Wedag and DSD Dillinger Stahl, Polysius and IHI. Technical clarification meetings were held in Switzerland in June with the project consultant, Switzerland's Holcim. Industry sources say that QCC's original plan was to award the contract by the end of July.

The extra capacity is due to come on stream by early 2006, bringing total production to 9,200 t/d. The plant's output is earmarked for sale in the local market.

At least two other cement companies in the kingdom are also looking to expand production, but no tenders have yet been released.

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