Southern Province Cement Company has entered into a significant partnership with Sinoma International Engineering Company to construct a state-of-the-art cement production facility with a capacity of 5,000 tonnes per day. This collaboration represents a major investment in the region’s cement production capabilities, with a contract valued at $330 million.
In an official statement to the Saudi bourse, Tadawul, Southern Province Cement Company detailed that the contract with Sinoma also includes provisions for the construction of groundwork for an additional production line within the Kingdom, further enhancing local manufacturing capabilities.
Financing for the entire project will be provided by a local bank, reflecting confidence in the venture and its potential impact on the industry. The project is set to be completed within a 30-month timeframe, ensuring timely delivery of the new production line.
Earlier this year, Southern Province Cement announced plans to upgrade its Jazan Cement Factory, intending to replace its existing production lines with more efficient technology. The company has made significant strides in evaluating technical and financial proposals from various competitors for this initiative, culminating in the conclusion of their assessment process. Currently, the focus is on drafting and reviewing the contract, which will be formally signed upon completion of the necessary administrative procedures.
This investment marks a strategic move for Southern Province Cement, positioning the company to meet increasing demand while enhancing its operational efficiency in the competitive cement market.
