RIYADH, 28 May 2006 — Saudi Arabia has authorized the launch of Dana Cement Co., a closed-stock firm with a paid-up capital of SR1.1 billion ($293.3 million), the state news agency SPA said yesterday.
Founders have so far raised 25 percent of the capital, the equivalent of 27.5 million shares, of the firm which will be based in Riyadh, the agency said, quoting a statement from the Trade and Industry Ministry. It did not give the capacity of the planned company.
Ministry officials could not be reached for comment. Saudi Arabia is pressed to raise cement production to cope with a real estate boom and huge infrastructure projects.
Last June, the ministry issued licenses for projects worth SR21.6 billion to treble cement production to some 68 million tons per year.
There are eight cement companies in Saudi Arabia producing an annual 23 million tons, some of which are seeking to raise their output.
