RIYADH, 26 March 2005 — The Riyadh Cement Company (RCC) has signed an agreement with China’s Sinoma International for the construction of an SR1.035 billion cement plant which is to be commissioned within 26 months. The accord was signed by RCC Chairman Prince Faisal ibn Abdul Majeed and Sinoma Chief Executive Officer Wang Wei here on Wednesday.
The cement factory which will be located in Muzamiyah, 80 kms from the capital, is expected to produce 5,000 tons of clinker cement per day. Demand for cement is now high in Saudi Arabia with the government spending heavily on new infrastructure projects including roads, schools and other buildings. RCC will be the ninth cement company in the Kingdom. Saudi Arabia produces 22 million tons of cement out of the 25 million needed to cater for the rising needs of the construction industry. Domestic consumption of Portland cement has grown by 11.6 percent a year since 2000, reaching around 25 million tons in 2004.
RCC Finance Manager Mukhtar A. Shaikh told Arab News that the plant is expected to be commissioned in the second quarter of 2007 and eventually it would reach a target of producing two million tons of cement a year. He said the company would get raw materials such as limestone, shells and petroleum and mineral resources locally for its production. The paid up capital of the project is SR550 million which includes an allocation of SR400 from Saudi Industrial Development Fund (SIDF) and SR100 million from commercial banks in the Kingdom. The new project will employ more than 300 people. “We will try our best to stick to the Saudization program of the country and we will provide technical training for Saudi youths to take up positions in the new factory, “ Shaikh said.
Speaking to Arab News, Chinese Ambassador Wu Chunhua said Sinoma is a big state-owned enterprise with a good reputation for its productivity and using state-of-the-art technology. He described the project as “win-win cooperation” for both parties.
The envoy said Sino-Saudi ties are forging ahead in political and economic fields. “Bilateral trade has reached a record high of $10 billion,” he added.