Kingdom forges cement ties

03 March 2006

Turnkey contracts worth more than $500 million are close to being awarded on two new cement plants with total capacity of 9,000 tonnes a day (t/d). Tender documents have also been issued for another greenfield plant, while a fourth is slowly moving ahead (MEED 20:1:06). Two companies have been shortlisted for the contract to build a 3,000-t/d greenfield plant for United Cement Company (UCC) near Jeddah. The bidders are Sinoma International and China National Building & Materials Equipment Import & Export Corporation (CNBM), both of China. The scope of works on the 24-month contract includes a kiln, a clinker line including clinker bins, crushing and packing facilities, silos and control systems. An award is nearing for the contract to build a new 6,000-t/d cement plant at Arar near the Iraqi border. Sinoma and the local Nesma & Partners Contracting Company are understood to be left in the running for the estimated SR 1,200 million ($320 million) project. The client is Northern Region Cement Company (NRC), a recently incorporated subsidiary of Saudi Pan Company for Trading, Industry & Contracting (Sapac - MEED 20:1:06). India's Holtec, which is the consultant on both projects, is also in the early stages of design for a third plant to be located in the Al-Wasta area. The client on the 3,000-t/d plant is the local Al-Rajhi Group.

El-Khayat Cement Company has also invited companies to bid by the end of February to build a 3,300-t/d facility northeast of Jeddah. The contract will include construction of a power station with generating capacity of about 25 MW. Switzerland's PEG is the consultant. Clinker production in the kingdom stands at about 23 million tonnes a year (t/y), which is to rise to about 34 million t/y by 2007.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications