Kingdom readies for new cement capacity

05 August 2005
Turnkey contracts worth more than $400 million have been awarded for the construction of two new cement plants with total capacity of 10,000 tonnes a day (t/d). Tender documents have also been issued for another grassroots plant, while an award is awaited for the expansion of the existing Saudi Cement Companyplant at Hofuf (MEED 24:6:05).

The larger of the two contracts, worth $247 million, has been awarded to the local Nesma Alfadl Contractingto build a 5,000-t/d cement plant at Najran in the southeast of the kingdom. The technology and equipment supply will be carried out by a group of Chinese companies. The 24-month contract, which covers the construction of a single clinker line, was placed by the local Najran Cement Company.

China's Sinoma International has also been awarded a $167 million contract to build a 5,000-t/d plant at a site 140 kilometres southwest of Riyadh. The order was placed by the local City Cement Company, which plans to award separate contracts for the power plant and crusher unit. The facilities are due to start production in early 2007. The contract is Sinoma's second major award in the kingdom: in March it won the contract to build the grassroots plant being promoted by Riyadh Cement Company (MEED 1:4:05).

Saudi Cement is in the final stages of evaluating bids submitted by three companies for the 30-month turnkey contract to install a new clinker line at its existing plant at Hofuf. The bidders are Denmark's FL Smidth, Germany's Polysiusand Sinoma. The 30-month project will involve the installation of a 10,000-t/d clinker line and a 500-t/d upgrade in the capacity of the fifth clinker to more than 4,000 t/d. A contract award is due by late August.

Bids are also due to be submitted by late August to the local Al-Rajhi Groupfor its planned 3,000-t/d plant in the Al-Wasta area. The contract is worth $140 million.

India's Holtec Consultingis the consultant on all projects.

A MEED Subscription...

Subscribe or upgrade your current MEED.com 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.