<The Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud has issued urgent directives to address the growing demand for cement, and to secure it for all citizens in light of the steady urban growth and government infrastructure projects.
Minister of Commerce and Industry Dr. Tawfiq Al-Rabiah said that the directive will end the current scarcity of cement in the local market by requiring all factories to quickly import a total of 10 million tons of cement to cover the needs of their markets in addition to what they currently produce.
It also includes long-term solutions to meet the needs of the coming years, by urgently establishing three to four new factories with a production capacity of 12 million tons per year, and an amount of three billion riyals has been allocated to support this program for three years.
For his part, Dr. Zamil Al-Muqrin, Chairman of the National Committee for Cement Companies, told “Riyadh” that the royal directive came to save the local market from the shortage of an important commodity such as cement, where the shortage is between 4 to 5 million tons during the current year, given the increase in local demand annually by more than 10 %, noting that the directive dispelled the fears of citizens after the shortage of the commodity, which was reflected in raising prices in many regions of the Kingdom during the past period. He stressed that the royal directive will restore balance to the Saudi market, especially during the summer period when demand decreases by 50 %, especially the month of Ramadan due to high temperatures, adding that the decision will restore prices to their normal status, which is 12 riyals per bag, which is the cheapest price compared to other countries in the world.
The head of the National Committee of Cement Companies revealed that cement companies are waiting for the meeting with the Ministry of Commerce in the coming days to know the details of importing 10 million tons, and whether it will be imported within a year or three years, as well as raising the demands of cement companies to the official authorities on the importance of importing through a negotiating team composed of all companies to unify efforts and not exploit the export side to compete with Saudi companies by raising prices, stressing that the high costs of transportation and vessels also impose a unified negotiating force.
Al-Muqrin pointed out that the proposed destinations for recovery are the UAE and Egypt, and that the import period needs from 3 weeks to a month to reach the local market / and that the import of Saudi companies clinker is easier than cement, explaining that Saudi factories lack the availability of this material to expand their business during the coming period.
For his part, Dr. Zamil Al-Muqrin, Chairman of the National Committee for Cement Companies, told “Riyadh” that the royal directive came to save the local market from the shortage of an important commodity such as cement, where the shortage is between 4 to 5 million tons during the current year, given the increase in local demand annually by more than 10 %, noting that the directive dispelled the fears of citizens after the shortage of the commodity, which was reflected in raising prices in many regions of the Kingdom during the past period. He stressed that the royal directive will restore balance to the Saudi market, especially during the summer period when demand decreases by 50 %, especially the month of Ramadan due to high temperatures, adding that the decision will restore prices to their normal status, which is 12 riyals per bag, which is the cheapest price compared to other countries in the world.
The head of the National Committee of Cement Companies revealed that cement companies are waiting for the meeting with the Ministry of Commerce in the coming days to know the details of importing 10 million tons, and whether it will be imported within a year or three years, as well as raising the demands of cement companies to the official authorities on the importance of importing through a negotiating team composed of all companies to unify efforts and not exploit the export side to compete with Saudi companies by raising prices, stressing that the high costs of transportation and vessels also impose a unified negotiating force.
Al-Muqrin pointed out that the proposed destinations for recovery are the UAE and Egypt, and that the import period needs from 3 weeks to a month to reach the local market / and that the import of Saudi companies clinker is easier than cement, explaining that Saudi factories lack the availability of this material to expand their business during the coming period.
