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.

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